HARTINGTON – Only four area residents showed up Monday to hear representatives from Laurel-Concord-Coleridge school district answer taxpayer questions as to why its budget exceeds the allowable growth set forth by state law.
Taxing entities are required by state law to attend a special Truth in Taxation hearing if they raise property tax asking above two percent, plus an allowable growth percentage tax lid put in place by the Nebraska Legislature in 2021.
Monday’s meeting lasted 19 minutes. LCC Supt. Jeremy Christiansen and School Board President Carol Erwin attended the meeting.
Christiansen said the district’s budget is only slightly more than the allowed amount under the law – less than one-half of 1 percent.
Part of the reason for the increase is an unexpected cost of mold abatement in the old school gym, Christiansen said. He said the abatement will cost the disrict $176,768. Putting in a new HVAC system in that gym brings the total cost to nearly $325,000, he said.
A special education reimbursement and federal COVID-19 stimulus funding used in prior budget years as revenue resources are no longer available to be used in that way, he said.
“It’s crazy because it’s not like there’s any one major, specific reason, other than our starting resources are lower than what we had last year,” Christiansen said.
Last year, the LCC School Board voted not to authorize a higher taxing authority which was the goal of Gov. Jim Pillen’s property tax reform and changes in state aid to schools.
As a result, the school district’s allowable budget growth was based on the prior year’s actual budget, not the higher amount it could’ve authorized.
“That became a negative on us and we ended up getting caught up in that,” Christiansen said.
Last year, three dozen taxpayers attended the hearing which lasted about 20 minutes and involved taxing entities Cedar County, City of Laurel, City of Randolph and Wynot Public Schools.
Each budget season, taxing entities notify the county assessor if their budget will exceed the percentage growth lid. That information is then sent to the state which prints and mails each pink postcard.
For Cedar County, 2,236 pink postcards were mailed this year.
With an approximate cost of 50 cents each, the total cost amounts to more than $1,100.
The cost is passed on to those taxing entities who are required to attend the hearing, said County Clerk Jessica Schmit.