TONTOGANY – Otsego Local Schools will be asking district residents for additional funding – the first time in 20 years.
At Monday’s school board meeting, members unanimously agreed to place a 0.5% income tax on the Nov. 7 ballot.
The levy, which is for a continuing time, would collect $1.9 million, said Treasurer Steve Carroll.
The board supported the request even after learning state aid should increase by $400,000 next year.
It’s a nice bump, board member Jamie Harter said about the increase in aid, but it doesn’t move the needle far enough.
Without the extra income from the new tax, the district will continue to spend more than it takes in for each of the next five years and is expected to reduce its unreserved cash balance to $2.51 million at the end of fiscal year 2027, Carroll said at a June meeting.
He predicted the district would deficit spend at around $850,000 this year and that has been adjusted to $500,000-$600,000.
“I hate that we have to go to a levy, but the numbers are leading us that way,” said board member Jessica Mehl.
The last time the district asked voters for new operating money was in 2002 with a 1% income tax, according to Superintendent Kevin O’Shea.
Harter supported the 0.5% over a proposed 0.75%.
“We are looking at everything,” he said.
Three times in the last 10 years the district put a levy on the ballot only to pull it off when additional funds became available. One time was after a re-evaluation of property tax, then Nexus came to town, and finally COVID funding.
Board President Brad Anderson said district leaders should talk to the community and share what Otsego has done since the last time it asked for new money.
The board of education is going on the road for the first time since COVID.
It will meet Aug. 23 at the Weston Library, Sept. 27 at the Haskins Town Hall and Oct. 25 at the Grand Rapids Library.
“In the past, when we asked for operating funds, it gook a negative bent,” Harter said. “We need to focus on the good and how this will help us be better.”
Board member Gordon Digby proposed putting together a storyline of the finances and reminding voters Otsego does not have the industry tax support offered to other districts.
“When you look at the numbers that we’re spending per pupil compared to all the other school districts … yeah, we’re doing great with what we have but here’s what we could do and what we’re trying to do,” he said.
“Things are good but there are areas that need improvement,” Digby said.
Anderson agreed and suggested a quarterly financial newsletter showing the district’s numbers.
“We’ve shown we’ve been good stewards of the money,” Harter said.
Board member Mark Tolles said voters need to know how unfunded mandates are burdening the district, including for special education
Digby asked for a comparison of what was spent 10 years ago on special needs teachers and what is being spent today.
Also at the meeting, the board:
• Hired Noel Crawford as a safety officer. Crawford retired after 25 years with the Bowling Green Police Division.
• Eliminated the $10 student fee for drug testing.
• Heard Tolles oppose allowing dogs into the buildings due to kids with allergies. If their eyes are watering and they are itching, they are not learning, he said.
Superintendent Kevin O’Shea said there are therapy dogs in the elementary school and junior high and one student had a service animal.
He agreed the district should acknowledge there are animals in the building and address it with parents, so they are aware.
Tolles said the animals should not be allowed in the classroom.
You wouldn’t walk in and throw peanuts at kids and tell them to eat them, he said.
“It’s wrong,” he said.
