Board of Ed Proposes 'Lowest Tax Increase in 30 Years'

The Ramsey Board of Education held a public hearing on a proposed 2013-14 school budget Wednesday night that district officials say calls for the lowest school tax increase in at least 30 years, since the district has been keeping records of its budget proposals. This year’s budget – which calls for a 0.2% increase in taxes over last year – might be the smallest tax increase in Ramsey school history, officials said.

The $58,407,487 budget increases operating costs by just under $61,000 over last year.

According to district officials, the spending plan calls for an annual tax increase of $14.87 for the average homeowner in Ramsey with a home worth $427,200. Residents can figure out their anticipated tax increase under the proposed budget by adding $3.48 for each $100,000 of their home’s assessed value.

According to Interim Superintendent Bruce DeYoung and Business Administrator Bob Marcotulli, the budget keeps all district programs in tact for next year, and does not call for any major changes.

Board member Richard Muti detailed Wednesday night several reasons he feels the district was able to keep the tax increase “so low” this year.

Muti cited a refinancing of the district’s long-term debt, and $1,240,576 in state aid – a figure which remained flat from last year – as two of the reasons for the proposal. He also mentioned several employee healthcare related changes that he said resulted in savings for the district.

First, a state law requiring employees to contribute more to their healthcare costs has saved the district about $1M, he said, and prompted over 80 district employees to opt out of the Ramsey schools healthcare plan.

In addition, a teacher contract negotiated last year enrolled staff members in the state employee health benefit plan, which he said saved the district over $1M.

The savings, “came about through a cooperation of staff and management,” during the contract negotiation process, Muti said Wednesday.

Board President Tony Gasparovich thanked the board and district officials, whom he said did a “fantastic job,” for putting together the budget.

Board members urged residents to vote on the budget on April 16. Board members said school groups will be sending out reminders over the next few weeks to remind residents of the upcoming vote.

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