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School tax opt-out proposal not welcomed in North Rapid

School tax opt-out proposal not welcomed in North Rapid
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Raising property taxes instead of cutting $4 million from the Rapid City school budget will affect basic household choices in many North Rapid homes, some neighborhood residents said Tuesday.

(EDITOR'S NOTE: The following story has been changed from its original posting to accurately reflect the day of the next meeting of the school board with the public.)

Rapid City Area Schools officials brought the budget presentation to North Middle School for the second of three community meetings this week. Just 58 people attended, asking about facilities, state video lottery possibly providing more money, overcrowding at Central High School and the prospects of higher school taxes.

Because of anticipated revenue shortfalls, the school's budget for 2009-10 could be $2 million less than the current school year. To balance the budget, staff and administrators have been instructed to propose 5 percent cuts - $4 million - for next school year.

Officials also are weighing opting out of state-imposed property tax limits to make up the $4 million. That would add $46 in yearly school taxes on a $100,000 house, $29 per $100,000 for agricultural property, $41 for a $100,000 hobby farm and $98 for $100,000 commercial property.

North Rapid homeowner Susan Barnhardt said she wasn't aware of the average income in her neighborhood but said $46 would be a reach for many of the parents in that community.

"I know families where the husbands are making $10,000 less this year than they did last year. We've just had our water bill go up and will go up for the next 10 years," she said.

Barnhardt said $46 represents money used to buy shoes for kids or whether they go to a doctor's appointment.

"When I think about how much money it takes just to live, it would be hard to decide what necessities that will have to be put on hold," she said.

Anna Shaw agreed. Based on her income, the North Rapid homeowner and parent said she can't afford more taxes.

"We're barely making it as it is. I'm going to feel that," she said.

Bonnie Redden, a homeowner and political activist, wanted officials to consider eliminating school sports. If they want sports, she said, local clubs could support programs as they do for Little League or Post 22 baseball.

"I don't pay the ridiculous prices I pay for taxes to support kids sitting around playing computers or supporting an after-school babysitting program," she said. "I'm tired of providing for the takers."

School board member Wes Storm had hoped to convince those at the meeting that a tax opt-out might be better than cutting programs.

"I know it's a raise in taxes, but we've got a big problem," Storm said.

Storm said that the revenue Rapid City taxpayers send to Pierre is far more than what the state sends back to fund public education here.

If taxpayers voted to opt out of state-imposed tax limits, the majority of taxes would stay within the district. There could be a two-year limit on the tax as well, he said.

"An opt-out would get us to a level playing field. Right now, we're in a hole, and we're going to have to cut programs," Storm said.

Those decisions are pending. Officials have said the list of proposed cuts has not been completed.

The third of the community meetings is at 6 p.m. Thursday at West Middle School.

Contact Jomay Steen at 394-8418 or jomay.steen@rapidcityjournal.com

Copyright 2012 Rapid City Journal. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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