If vote fails, the school district could be shut down
PETOSKEY, MI -- Petoskey Public Schools is also working to ensure money will be available for the next school year.
Tuesday, voters will decide if they want to renew an 18-mill non-homestead tax.
7&4 learned if this vote fails, it could be devastating to the school district.
This picture shows one of the first graduating classes in Petoskey, dated a few years back in 1885. A grand total of eight students completed school. In 2010, there's just under 3,000 students in Petoskey Public Schools. Could you imagine if next school year, the system had to be shut down? With a failed vote, the abstract thought could be reality.
"If this millage were to fail, we would have funding that probably would keep us open until about mid-September to the first part of mid-October, and then we'd be out of money, we wouldn't be able to operate any longer," said Petoskey Superintendent John Scholten.
A vote on whether or not to renew the 18-mill non-homestead tax will take place on Tuesday. Non-homestead means businesses and non-primary residents. For example, for $100,000 of taxable value, the taxes will be $1,800 dollars. The 18 mills levied to the school district is nothing new...it was enacted 13 years ago since the change of Proposal "A." But the school district is required to renew the tax on a normal basis. For Petoskey, it's every two years.
“That renewal makes up roughly 63 percent of our operating budget, so folks will be able to have the opportunity to pass or should we say extend the renewal of those 18 mills," said Scholten.
If the vote does in fact pass, it's estimated that the mill will generate just under $16 million for the school district. If it doesn't pass, the superintendent says these doors may be closed for good.
“For us operationally, there's no way we can keep the doors open much beyond the mid-part of Fall not having 63 percent of our budget here," said Scholten.
Scholten says if this vote does fail tomorrow, the district will scramble to have a reelection before the school year begins. He hopes he doesn't have to go that route.
The other money for the district comes from the six mills that are taxed to residents.
This money goes to the state and is redistributed.
Petoskey's allowance is at the bare-bottom, which is just over $7,000 per kid.
