Revenue

Van Buren Schools receive funds that support the school that come in from different funding sources.  This is also called revenue. 

Real Estate taxes (property taxes) - This is income for a school district that is set based on the conditions of the funding levy passed by the community and the value of property in the district. Below are some facts about levies:

 

It is illegal for a levy to generate more income than was passed by the voters.  For example, a 2 mill levy cannot generate more than 2 mills of income no matter how many houses are added to a district or how fast property values go up.

 

Each levy includes “tax reduction factors” which require that the amount of tax paid on a property does not go up as the property value goes up.  This means that increased property value does NOT result in a larger property tax. It also means that the amount of revenue a levy generates for a school does not increase as property values increase.

 

This is the Ohio law that requires this.  http://codes.ohio.gov/orc/319.301

 

State Foundation Support - This amount is determined based on a formula created by the State legislature every 2 years that uses multiple factors about the district to determine the amount of funding the State provides to the district.  Below are the numbers for VB from the 2019 report: 

  • $78,517 = Average income (federal average income per tax return filed by the residents of the school district)

  • $284,772 = Average property values per pupil (assessed property valuation divided by total students)

  • 13% = Disadvantaged student percentage/poverty rates/students eligible for free or reduced-price lunch

  • 1009 = Average number of students

  • 560 = Ohio Department of Education ranking of all school districts in Ohio from 1 to 608 with the 1 being the poorest and 608 being the wealthiest district in the state based on the numbers above.

This ranking is used to determine the portion of a project, such as a building, the State and District would each pay.  The cost paid by the district is equal to its percentile ranking.  For example, Van Buren is ranked 560th which falls in the 92nd percentile, meaning Van Buren would pay 92% of the cost of the project and the State would pay the remaining 8%.  By contrast, Liberty Benton is ranked 258th which means that they are paying 42% of their new building and the State is paying for 58% of it.

These numbers can be found here.

The State funding formula information can be found here

The formula is weighted so that districts with fewer students in poverty, higher property values, and higher average incomes, like Van Buren, receive LOWER funding percentages from the State than districts with lower property values and higher students in poverty.

Restricted Grants in Aid - This is also State Foundation funding, but is in the form of grants VB faculty have applied for and won. 

 

Property Tax Allocations - VB income from the State has lowered drastically due to the removal of the Tangible Personal Property Tax from all businesses except utilities.  The tax was phased out starting in 2005.  VB received approximately $2 million from this tax in 2005 and now receives around $500,000 per year. This is expected to go down to $0 within the next 2 years.

 

The State legislature replaced this tax with the CAT tax (Commercial Activity Tax); however, no district in the State has seen any funding from this tax.

 

Unfunded Mandates: (Shown as the gray over the green and part of the blue sections) All funding provided by the State ($625,894 in 2020) and a portion of local property taxes ($579,905) was used to pay for programs the State has mandated Van Buren provide, but the State has provided inadequate funding for.  These are called unfunded mandates and they include Student College Credit Plus Classes, transportation services to almost anywhere based on student need, private school vouchers, supplemental educational services, special needs services, pre-school, and counseling services, community school transfers, disadvantaged/homeless services, Medicaid oversight, testing requirements, and gifted services.  Van Buren gets $625,894 from the State and then pays the State $1,205,799.

 

Personal Property Taxes - This includes Homestead and Rollback taxes.

 

Other State Revenue - This includes fees and fines paid to the District.

Bonds - The one bond (loan) that VB has for the new elementary school building will be paid off this year, as the last payment will be December 1, 2020.  That means the property tax will go away because the building will be paid off.  This was never income for operating because it only paid for the bond (loan) for the building.  The proposed income tax would be less than this property tax was for most homeowners.

Federal Funding - VB receives $459 per pupil in Federal funding which is 4% of the total district income.  Out of the 608 school districts in Ohio, 521 schools receive more federal funding than Van Buren. 

The US Department of Education states in the first line on their website that “Education is primarily a State and local responsibility in the United States.” More information on Federal funding can be found here.  

Expenses

These have been maintained without additional funding since 2004 and a major decrease in funding from the State.  Keep in mind that in 2004 there were 945 students and in 2020 there are 1,069 students. Inflation has also made costs increase. An item that cost $100 in 2004 costs $136 in 2020.

Salaries are the biggest cost and a big reason why VB is such a high performing school.  Van Buren teachers are paid lower than other district's teachers in the area and districts with similar average incomes and property values.

Employee Benefits - Including health care for 89 employees as required by law. Changes have been made to reduce costs including higher deductibles for participants and a higher percentage of premiums covered by employees.  This has saved over $100,000 this year alone.

 

Purchased Services - Includes items such as utility bills (gas, electric, phone, internet) major repairs to buses (transmission, engine rebuild, etc), major building repairs (plumbing, electrical, HVAC {heat, ventilation, air conditioning}, etc.), Supplemental educational services (occupational therapy, physical therapy, gifted services, special education teachers, some curriculum), legal counsel, consultant services, etc. in which a contractor must be hired.  Unfunded Mandates are also covered here, including Student College Credit Plus Classes, transportation services to almost anywhere based on student need, private school vouchers, supplemental educational services, special needs services, pre-school, and counseling services, community school transfers, disadvantaged/homeless services, Medicaid oversight, testing requirements, and gifted services.

 

Supplies - Includes items such as fuel, oil, wiper fluid, etc. for buses; building maintenance supplies; toilet paper, paper towels, cleaning products, paper and ink for printers, etc.           

 

Other Objects - Include items that are mostly fiscally related, such as auditing costs, county auditor charges (election fees and collection fees), bank fees, etc.

Success for VBS!

OUR KIDS, OUR COMMUNITY, OUR FUTURE

van buren levy

SUCCESS FOR VBS!

Our Kids, Our Community, Our Future

PO BOX 68,

Van Buren OH 45889

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