Understanding Poudre School District Ballot Measure 4A
United Way of Larimer County is committed to providing clear, accessible information for voters on issues that impact children, youth and families. One such issue is the upcoming Ballot Measure 4A for the Poudre School District (PSD), which aims to secure additional funding for the district. This measure will appear on the November 2024 ballot and has important implications for PSD’s future. Let’s break down what this measure entails and its potential impact:
What Does Ballot Measure 4A Propose?
Ballot Measure 4A seeks to create a dedicated revenue source for PSD through a Debt-Free Mill Levy. This funding will be used to:
- Improve and maintain the district’s buildings.
- Reprioritize existing funds for:
- Recruiting and retaining teachers and staff.
- Classroom resources.
- Career and technical education.
- Support for neighborhood schools.
This measure is based on the Debt-Free Schools Act, which allows school districts to collect revenue specifically for constructing and maintaining school facilities. Voter approval is required for any mill levy.
What is a Debt-Free Mill Levy?
A debt-free mill levy is a specific type of property tax that a school district can impose to generate revenue for school-related expenses without incurring debt.
- Mill Levy Basics: A mill levy is a property tax rate expressed in mills (one mill equals $1 per $1,000 of assessed property value). When a mill levy is approved, property owners pay an additional tax based on their property’s assessed value.
- Debt-Free Funding: The term “debt-free” indicates that the funds raised through this mill levy are used for current expenses, such as building maintenance and operational costs, rather than for financing new construction projects through loans or bonds. This allows school districts to address immediate needs without taking on additional debt obligations.
- Purpose: Under the Debt Free School Act, revenue generated from a debt-free mill levy can be used for capital construction, facility improvements, or maintenance. It aims to provide a stable funding source for capital expenses, ensuring that schools can maintain facilities and quality education without relying on borrowed funds.
- Voter Approval: To implement a debt-free mill levy, school districts must seek approval from voters, ensuring the community has a say in how their property taxes are allocated and used.
- Flexibility: This type of levy allows school districts to adapt their funding based on assessed property values and inflation, providing a consistent revenue stream to meet changing educational needs.
Current Context
PSD previously secured similar funding through a mill levy that is expiring this year as the debt from past construction projects is paid off. The new measure would replace and expand this revenue stream.
The proposed ballot language allows PSD to set the Debt-Free mill levy annually based on property values within the district. The goal is to generate $49 million in 2025, adjusted for inflation in subsequent years.
Allocation of Funds:
- $21.5 million will be redirected from PSD’s general fund to prioritize salaries, classroom materials, career and technical education, and support for neighborhood schools.
- $22.9 million will go towards necessary building maintenance and repairs across PSD’s 49 schools.
- $4.6 million will be allocated to district-authorized charter schools, as mandated by state law.
If the ballot question fails, the old mill levy will expire, resulting in decreased property taxes and lower revenue for the district.
Understanding School Funding in Colorado
School funding in Colorado comes from a mix of local and state sources. Currently, PSD receives about 53% of its per-pupil funding from the state and 47% from local sources. Revenue from a Debt-Free Mill levy is not included in the state’s per-pupil funding calculation, making it a crucial supplemental funding source for the district.
Recent analyses have highlighted revenue shortfalls in PSD, leading to discussions about closing underenrolled schools. The School Board was encouraged to seek additional funding to avoid these closures.
Financial Impact on Property Owners
If approved, property owners within PSD will see an increase in their taxes:
- Residential Properties: An increase of $126.05 in 2025 for a property valued at $500,000.
- Non-Residential Properties: An increase of $569.60 for a property valued at $500,000.
If the measure fails, property owners would pay $184.00 less for residential properties and $830.00 less for non-residential properties compared to 2024. Please note these estimates were prepared prior to recent changes in assessment rates, which may affect actual amounts.
Proposed Ballot Language
The ballot will read as follows:
In order to make more general fund revenues available for the purposes set forth below, shall Poudre School District R1 taxes be increased by up to $49,000,000 annually commencing in tax collection year 2025, increasing with the rate of inflation, for the purposes authorized and in accordance with Section 22-54-108.7, C.R.S., (The Debt Free Schools Act)…
(The full text of the ballot measure details various allocations for maintaining and improving education quality, teacher retention, neighborhood schools, and facility upgrades.)
Support and Opposition
Arguments in Favor:
- PSD requires ongoing funding for essential building maintenance and replacement cycles for equipment.
- Competitive salaries are crucial to attract and retain top teachers and staff.
- Funding is necessary to renovate classrooms and ensure safe, productive learning environments.
Arguments Against:
- Many residents believe taxes are already high and should not increase further.
- The district has already received funding from previous measures and may not need additional funds.
- Critics suggest that PSD should address underenrolled schools before asking for more funding.
- Some feel the ballot language lacks specificity regarding how funds will be allocated and their expected outcomes.
- There has been a lack of engagement with community partners in early childhood education, which is also in need of public funding and part of our community’s continuum of education.
Why This Matters
The decision to amend the funding structure for PSD is significant. Ballot Measure 4A has the potential to impact the quality of education and the resources available for schools in our community for years to come. We encourage voters to consider the long-term effects of this measure on funding, educational equity, and community support.
For more detailed information, including upcoming educational events hosted by PSD, visit 2024 Mill Levy | Poudre School District (psdschools.org)
This resource is part of our United We Vote campaign, which aims to provide non-partisan voter education about critical issues affecting our community. We encourage you to research, ask questions, and make an informed decision before heading to the polls this November.
More United We Vote Resources:
Check your voter registration, find your polling place and more.
Learn more about Amendment 80.
Learn more about Thompson School District’s Ballot Measures 5A and 5B.
