Dissolution Q&A, Part 3

Superintendent News & Views

Dissolution Q&A, Part 3

By David Hill, Gladbrook-Reinbeck Superintendent

This is the third column in a series which provides answers to questions about the proposed dissolution of the Gladbrook-Reinbeck Community School District that were submitted by interested citizens through an online form and special telephone line which allowed district patrons to leave a recorded message to ask a question.

I want to express my appreciation to those who submitted one or more questions for this column as well as the previous two Q&A columns. If you missed the first two columns in this series, you’ll want to be sure to check those out on my blog at rebelsupt.blogspot.com. Now, on with this week’s questions and answers!

Q:  I rent a home in Reinbeck and I don’t own any property. I’ve heard Reinbeck property taxes will go up if the school dissolves, but this doesn’t affect me.  I do have to pay an income surtax each April when I file my income taxes. What is the income surtax in the Dike school district? Would the income surtax go up or down for me?   

A: The caller is correct to state that their apartment in Reinbeck would be located in the Dike-New Hartford school district if the “YES” vote prevails. Dike-New Hartford’s current income surtax is 8%, which is higher than the 3% income surtax currently paid by Gladbrook-Reinbeck’s taxpayers.  Here is a comparison of the fiscal year 2018 income surtax rates for all of the districts that would be affected by the dissolution: NORTH TAMA: 8%; GMG: 10%; GRUNDY CENTER: 6%; HUDSON: 2%; DIKE-NEW HARTFORD: 8%.

As I stated in my column on property tax rates, school boards establish their tax rates (including income surtax rates) ANNUALLY as part of setting their budgets; therefore, these numbers could (and likely would) change over time.

Also, it may not be correct to state that higher property taxes don’t affect you as a renter.  When a landlord’s property tax rates are higher, this additional cost may result in higher rent for tenants.  Everyone is a consumer whether they own or rent property. When commercial property taxes are higher for area businesses, this additional cost may be reflected in higher retail prices on goods and services. 

Q: I’ve seen a lot of “Vote NO” signs posted. Is this an appropriate use of public funds?

A: The signs you have noticed were NOT paid for with public funds. They have been privately funded and privately distributed.

Q: Is the G-R school district currently in financial trouble?

A: The district’s CURRENT financial health is good, but we do have reason to be concerned about the future. The Iowa Association of School Boards (IASB) recommends an Unspent Authorized Budget (UAB) ratio between 5% and 15%, and G-R’s ratio is even higher than 15% -- that’s a real positive. A UAB ratio that is between 0% and 5% is major cause for concern, and a negative UAB ratio is illegal.  At the point of a negative UAB, the state requires schools to develop a workout plan and if the workout plan is not successful, the state may forcibly dissolve a district with a negative UAB ratio.  Gladbrook-Reinbeck’s current UAB indicates that the district has more than adequate spending authority at the present time.

Q: If the district isn’t in financial trouble, why did you have budget cuts?

A: Nearly every Iowa school district, with the exception of a few fast-growing districts, has been forced to make budget cuts in recent years. This is primarily due to several consecutive years of inadequate funding from the state.

G-R has developed five-year financial projections with help from renowned school finance experts.  These projections show the district’s UAB ratio (described in the previous question) declining to about 5% five years from now, primarily due to inadequate state funding and because of the same declining enrollment trend that most Iowa districts are experiencing.

While 5% is still in the “healthy” range, we are concerned about the projected drop in spending authority which could negatively affect opportunities for our students in future years. Making budget cuts now will help the school to be financially viable for many years into the future. Our priority is to select budget cuts that will have minimal effect on students. This will ensure G-R’s financial viability for the long term.

Q: Someone told me G-R only has a few years left before it is forced by the state to dissolve due to finances.  Is this true?  How many years does G-R have left, financially speaking? 

A: Your school board and administration are committed to ensuring that G-R remains a financially viable district for many years into the future. If we are responsible in our decision making and continue to look for savings opportunities, we believe that Gladbrook-Reinbeck will be here for many years to come…far into the foreseeable future.   

Q: How is it that you couldn’t afford to keep the Gladbrook building open, but you can afford to expand and remodel the daycare buildings in both towns?

A: G-R’s greatest area of financial concern is our GENERAL FUND. The primary purpose of closing a building was to allow for efficiencies to directly affect the general fund. Funds to remodel and expand the Crayon Corner Learning Center and Little Rebels Learning Center don’t come from the general fund – they come from funds which legally can only be used for facilities projects and a few other limited uses.

The G-R School Board is making investments in both of the daycare/preschool facilities because both centers have expressed the need for additional space to meet the needs of students. The board has voted to provide $35,000 for the proposed remodeling of the Crayon Corner Learning Center in Gladbrook – this is 100% of the amount requested by Crayon Corner.  The board has voted to provide $180,000 for the proposed project at the Little Rebels Learning Center – this is roughly 1/3 of the amount needed for the proposed expansion.

We’re proud to have Crayon Corner and Little Rebels as part of the Gladbrook-Reinbeck educational system – these centers represent the FUTURE of our district!   

Q: Has a school district in Iowa ever been dissolved before?

A: Yes, but not in this way.  A handful of very small Iowa districts have been dissolved by voters based on a recommendation of the district’s own school board because they were just too small to meet student needs.  A few other Iowa districts have been dissolved by the state due to financial difficulties. A dissolution process initiated by a group of district citizens had never happened prior to May, 2015 here at Gladbrook-Reinbeck. 

Q: Why does the school board want to dissolve the school district? G-R is a GREAT school!

A: The school board does NOT want to dissolve the school district. In fact, the board recently passed a resolution stating it is unanimously opposed to dissolution and of the opinion that a “NO” vote is appropriate in the upcoming election.

The school board cited various reasons for its opinion, including the likely closing of additional school buildings, the elimination of about 100 teaching and support staff jobs, and the loss of high-quality programs and services offered by the district. G-R’s record of outstanding academic, athletic and fine arts accomplishments while maintaining one of the lowest school property tax rates in the region is also cited as a reason for the school board’s opinion.

You are welcome to join the conversation by leaving comments on my blog at http://rebelsupt.blogspot.com and/or following me on Twitter at @DavidRobertHill.           

Dissolution Q&A, Part 2

Superintendent News & Views

Dissolution Questions & Answers, Part 2

By David Hill, Gladbrook-Reinbeck Superintendent

This is the second column in a series which provides answers to questions about the proposed dissolution of the Gladbrook-Reinbeck Community School District.  These questions were submitted through an online form and special telephone line which allowed district patrons to leave a recorded message to ask a question. The first column in the series answered a single question about how property taxes would be affected in the event of a dissolution.  If you missed that column, you’ll want to be sure to check it out in last week’s paper or on my blog. Now, on with the questions and answers!

Q: You have said that about 100 jobs will be lost if the dissolution passes. How many jobs is it really?

A: We have often used the number “100” in our communication because this is a number that is easy for people to quantify.  Here are the specifics, based on our current plans for the coming school year: Full-Time Employees: 68.  Part-Time Employees: 35.  Total Employees: 103.  Please keep in mind that we occasionally add/reduce positions as student needs and program needs change.

It is appropriate to note that this total does not include several other part-time and full-time employees who may not have an employment contract with Gladbrook-Reinbeck but whose jobs may be in jeopardy or would at least be affected if G-R dissolves. Examples of this type of person would be specialists employed by the AEA who are assigned to spend part of their time at G-R such as our AEA Team Representatives, Speech/Language Pathologists, Occupational Therapists, etc.  It is difficult to measure the effect on the college instructors, part-time instructors, and teachers from other districts who teach classes at the Cedar Valley West Center (formerly known as the Western Outreach Center). 

The total number of employees reported above also does not include employees whose contracts are held by other districts. Examples of this would be our Elementary Art teacher who is employed by Grundy Center, as well as our Superintendent, Curriculum Director, and Agricultural Education/FFA Teacher who are employed by North Tama. Substitute teachers & associates would also be affected. 

Q: How many of your employees would be hired by the neighboring districts if G-R dissolved? These districts would have an influx of students, so wouldn’t they need more teachers?  

A: That is really anyone’s guess.  I think it is safe to say that all of our neighboring districts are carefully evaluating their staffing levels because of the low increases in supplemental state aid in recent years.  If they can serve additional students without adding staff, that’s what they’ll do. 

If neighboring districts do need to hire additional teachers, they may consider applications from former G-R teachers who lost their jobs due to a dissolution, but they will also need to consider hiring first-year teachers right out of college who will be less costly to hire.  They are under no obligation to hire G-R teachers. We have GREAT teachers at G-R, but it’s likely that the only G-R teachers who would find employment in a neighboring district right away would be those who teach in high-demand shortage areas such as Special Education.  Many would be forced to leave the area to find employment as a teacher, while others may need to leave the teaching profession if they wish to stay in the area. 

As for other employees…I know there is a general shortage of bus drivers all across the state so my best guess is that any former G-R bus drivers seeking employment in a neighboring district would find a job. Principals would have no trouble finding a job as long as they are willing to move to another area. As for the secretaries, associates, cooks, custodians, and other support staff, it’s really anyone’s guess.  Again, if the neighboring districts can avoid hiring additional staff, that’s most likely what they will do. 

Q: Is it possible to go back to being just the Gladbrook district and the Reinbeck district – to just divide back into two schools?

A: No. Iowa law has no provision for this. 

Q:  It doesn’t seem right to me that voters in Grundy Center, Dike, Garwin, Traer, and the other districts around us don’t get to vote on September 12. If it was a merger, both sides would get to vote. I’ve heard that Dike-New Hartford and GMG are already overcrowded in their elementary buildings, can you tell me if that’s true? Do we know if the citizens of these districts even want our students?  

A:  The outcome of the vote on September 12 will be determined ONLY by the voters in the Gladbrook-Reinbeck district.  The VOTERS of the neighboring districts really don’t have a say in a dissolution according to Iowa law.  The SCHOOL BOARDS of each of the districts included in the dissolution proposal have expressed that they are willing to accept the proposed territory if the district dissolves. 

As to whether Dike-New Hartford or GMG’s schools are overcrowded, that’s a matter of opinion and probably something that should be addressed to the administration of those districts.

Q:  Can they get more poll workers so voters won’t have to wait in line for the dissolution election?

A: We have discussed the large expected turn-out with election officials, and they are making arrangements to have a sufficient number of poll workers on election day.  Also, the polls will be open for extended hours on September 12, from 7 a.m. to 8 p.m.  

While eligible voters can register to vote at the polls just before voting, one thing that would help to speed up the process is taking care of voter registration in advance.  Visit my blog for link to online voter registration or to download a copy of the mail-in voter registration form.

Voting by absentee is an option which allows voters to completely avoid waiting in line, and waiting at the polling place is reduced when some voters vote by absentee. You can request an absentee ballot by mail by sending an absentee ballot request to the Tama County Auditor’s Office. The auditor’s office has informed me that they have received a large volume of absentee requests and that as of August 11 they had already started mailing absentee ballots to those who had requested them.

If you wish to show up IN PERSON to vote by absentee, this can be done at the Tama County Auditor’s Office at 104 West State Street in Toledo during their regular office hours of 8-4:30, Monday through Friday. BALLOTS ARE READY NOW, and the process of in-person absentee voting has already begun. The final opportunity to vote in person by absentee is the day before the election on Monday, September 11, 2017. 

I invite you to join the conversation by leaving comments on my blog at http://rebelsupt.blogspot.com and/or following me on Twitter at @DavidRobertHill.       

ADDITIONAL INFORMATION & LINKS:

Three ways to get REGISTERED to vote:

1. Register to vote at the polls on election day. Find your polling place here.  
2. Register online.  
3. Download and print a voter registration form.

Not sure if you're already registered to vote?  Visit this link to find out.  

Three ways to VOTE:

1. Vote at the polls on election day. Find your polling place here.  
2. Absentee voting by mail.  Mail this form to the Tama Co. Auditor to request a ballot.  They will send you a ballot in the mail. Complete the ballot and return it in person or by mail.  
3. In-person absentee voting.  Visit the Tama County Auditor's office at 104 West State Street in Toledo during their regular office hours of 8-4:30, M-F. 

   

Dissolution Q&A, Part 1: How Would a Dissolution Affect Property Taxes?

Superintendent News & Views

How Would a Dissolution Affect Property Taxes?

By David Hill, Gladbrook-Reinbeck Superintendent

Several weeks ago, I invited district patrons to submit questions about the proposed dissolution of the Gladbrook-Reinbeck Community School District through an online form or by calling a special telephone line to leave a recorded message. In my next couple of columns, I will provide answers to the questions that I did receive. 

This week, we’ll only cover one question because the answer is a lengthy one.  The other questions and answers will likely be combined into one or two weekly newspaper columns, as I don’t expect them to take up nearly as much space as this week’s question.  I hope the information provided helps district patrons to be educated voters as they head to the polls on September 12. 

QUESTION: How would a dissolution affect our property taxes?      

ANSWER: If a “YES” vote prevails and the district dissolves, all property currently in the Gladbrook-Reinbeck district would become part of one of the neighboring districts. So, the answer to the question depends on which district each individual property would become part of. Property tax rates are set annually by each district’s board as part of approving their annual budget, so the only number we can use for comparison purposes is the tax rates that are in effect for fiscal year 2018.  The following graphic shows a comparison of fiscal year 2018 property tax rates:

Again, property tax rates are set annually by each school board so this could – and likely would – change over the years. Currently, taxes on property in the Hudson district are $3.37 per thousand dollars of valuation higher than property in the Gladbrook-Reinbeck district.  That’s 30% higher than G-R’s current rate.  It would be reasonable to expect that if G-R dissolves and your property becomes part of the Hudson district, you would see a property tax rate increase somewhere in this range.

Percentage-wise, here are comparisons for ALL of the districts involved in the proposed dissolution: NORTH TAMA: 5% lower; GMG: 26% higher; GRUNDY CENTER: 17% higher; HUDSON: 30% higher and, DIKE-NEW HARTFORD: 9% higher.

The Iowa Association of School Boards (IASB) has created a Tax Levy Impact Calculator, a spreadsheet tool that can be used to show the impact of a tax rate change. Using this tool, I thought it might be helpful to show you some specific scenarios. The tool uses average farmland values for each county. For home values, it’s possible to input the current taxable valuation into the tool to calculate property taxes. I won’t take space in this column to explain the concepts of tax rollbacks or to explain HOW these examples are calculated, but for those of you who would like to understand in greater depth, I will provide links to the calculation tool I’m using and resources that explain these taxation basics on my blog.  You may even want to visit my blog, download the calculator, and input your own property values to see how a dissolution would affect your specific property.

According to the latest Census of Agriculture, the average Iowa farm is 345 acres in size.  IASB’s Calculator, using average farmland values for each county, shows that the owner of a 345-acre farm in Grundy County near Reinbeck that would become part of the Dike-New Hartford district in the event of a dissolution could expect to pay an additional $450 annually in school-related property tax if taxed at Dike-New Hartford’s current rates.

Here are similar comparisons for a 345-acre farm for all parts of the current G-R district. A 345-acre farm that would become part of each of these districts could expect to pay the following amounts annually in comparison to their current G-R tax rates: NORTH TAMA: $192 less annually; GMG (Tama Co. portion): $992 more annually; GMG (Marshall Co. portion): $1,146 more annually; GRUNDY CENTER (Grundy Co. portion): $817 more annually; GRUNDY CENTER (Tama Co. portion): $642 more annually; HUDSON: $1,286 more annually, DIKE-NEW HARTFORD: $450 more annually.

Now an example for homeowners.  For comparison purposes, we’ll use a home valued at $125,000 (the median value of an Iowa home according to Zillow.com) and in all of our comparisons, the homeowner will qualify for the homestead credit but not any other credits (such as the military service credit).  IASB’s calculator shows us that the owner of a $125,000 home located in the town of Gladbrook that would become part of the GMG district could expect to pay $192 more annually in property taxes based on GMG’s 2018 tax rate. 

Here are similar comparisons for all districts involved in the proposed dissolution. Again, this is how much more (or less) the owner of a $125,000 home which qualifies for a homestead credit could expect to pay in property taxes if their home becomes part of each of the following districts in the event of a dissolution: NORTH TAMA: $37 less annually; GMG: $192 more annually; GRUNDY CENTER: $124 more annually; HUDSON: $223 more annually, DIKE-NEW HARTFORD: $68 more annually.

There are a few disclaimers that come along with the IASB Calculator: The calculator does not consider the impact of deductibility of property taxes on state and federal income taxes; Rollback percentages are applicable for 1/1/16 valuations; Agricultural property taxes are computed using preliminary average county 1/1/16 agricultural values; and, calculations are estimates and may differ from actual amounts. Even taking these caveats into account, I hope this helps property owners to better understand the possible impact of the proposed dissolution. 

              Gladbrook-Reinbeck Superintendent David Hill invites you to join the conversation by leaving comments on his blog at http://rebelsupt.blogspot.com and/or following him on Twitter at @DavidRobertHill.      



FURTHER RESOURCES:

Want to enter the value of your own home to see how YOUR property taxes would be affected?  Download the IASB's Tax Levy Impact Calculator HERE.  (Requires Microsoft Excel. Click the "down arrow" in the upper left-hand corner of the file and download to your computer.)  

To view the property tax rates for all school districts in Iowa, click HERE.  

For an overview of how property taxes work in the state of Iowa, click HERE.  

It’s Official – Dissolution Vote is September 12

Superintendent News & Views

It’s Official – Dissolution Vote is September 12

By David Hill, Gladbrook-Reinbeck Superintendent

Over the course of my adult life, I have visited the Tama County Courthouse for many reasons – to pay property taxes, to transfer the title of a car, and even to do my civic duty by serving on a jury. Recently though, I visited the courthouse for a very different reason -- definitely for something that I never thought I’d be involved with: On behalf of the school district, I delivered a resolution to county election officials calling for a public vote that will decide the fate of a school system. 

September 12 is election day, and the question is simple: Should the Gladbrook-Reinbeck School District Dissolve?  Or, should the district continue as G-R?  A “YES” vote will mean to dissolve (end) the district and divide the district’s territory, students, assets, and liabilities among five neighboring districts. A “NO” vote will mean to continue as G-R. 

As we enter the final weeks leading up to the dissolution election, there are a few important messages that I’d like to communicate to district patrons.  It is important to be an educated voter, and I believe the items in the following paragraphs will help you to make sure you know what you need to know as you make up your mind. Some of these are items that you haven’t heard from me before, while others have been stated previously in this column but are important and need to be repeated:

1) BE SURE TO VOTE!  September 12 may be your one and only chance to have a say on whether Gladbrook-Reinbeck continues as a school district beyond the 2017-2018 school year.  If you are eligible to vote (or if you will be eligible on or before September 12) then don’t miss the opportunity. 

Mark your calendar. Request an absentee ballot if necessary. If you aren’t registered to vote, GET REGISTERED!  (You can register at the polls on the day of the election, but being registered in advance will save valuable time.)  If you’ve never voted in a school election before, you’ll want to be sure to know whether your official polling place is at the Reinbeck Memorial Building, the Gladbrook Memorial Building, or the Lincoln Amvet Hall. Please note that your polling place may or may not be the same as the place you vote for a general election. We have requested longer polling hours for this election as we are anticipating a high turnout.  Polls will be open from 7:00 a.m. until 8:00 p.m. 

2) UNDERSTAND YOUR VOTE.  Know the meaning of a “YES” vote and a “NO” vote. I have provided a couple of graphics to accompany this column which I think makes things clear.  This first graphic shows that a NO vote keeps the Gladbrook-Reinbeck District intact, while a YES vote divides the district into five sections, each of which becomes attached to one of the neighboring districts:

This next graphic shows the same division of territory, but it also shows the surrounding districts to give you an idea of what the geography of each district would look like in the event of a majority YES vote:

3) KNOW WHAT “DISSOLUTION” MEANS.  I still occasionally encounter people that think a dissolution means we would separate into two districts, just like it was before Gladbrook and Reinbeck merged.  Some have equated it to a “divorce.”  I truly don’t feel that is an accurate representation because in a divorce, both parties continue as separate entities on their own. A vote to dissolve means you’re voting to END the Gladbrook-Reinbeck School District.  There would be no more G-R Rebels; our students would be divided based on where they live and would become GMG Wolverines, Grundy Center Spartans, Dike-New Hartford Wolverines, Hudson Pirates, or North Tama Redhawks. 

4) KNOW HOW DISSOLUTION AFFECTS YOU PERSONALLY. Look at the proposed map. If you have children, what district would you live in if G-R dissolves?  Even if you don’t have children, you should know what school district your home, business, or property would become part of if the district dissolves, as this may affect your property values and will definitely affect your property tax rates. Would your property and income taxes go up or go down if the district dissolves?   

By the way, if any district patron is having trouble determining which district your property would become attached to in the event of a dissolution, feel free to contact my office and we will be glad to help you figure this out. 

5) THINK GLOBALLY.  In #4 above, I encouraged you to think about how a dissolution would affect YOUR children and YOUR tax rates.  In addition, I encourage you to not just consider the effect on yourself but on the children of the ENTIRE SCHOOL DISTRICT.  First and foremost, the school district exists to meet the needs of our students.  Whether you have school-aged children or not, we all benefit from having an educated workforce and from having neighbors who are good citizens.  What do you believe would be best for the children who are residents of Lincoln, Gladbrook, Reinbeck, Morrison, and the surrounding rural areas? 

The dissolution commission and school board received very few questions and comments at the public hearings they held. Just as these hearings yielded little or no questions or comments from the public, the telephone Q&A line and online Q&A form that I promoted in this column also resulted in very few questions.  In one or more of my upcoming columns prior to the election, I will do my best to answer the few questions that were submitted. If you missed the opportunity to submit a question, there may still be time if you hurry…just reread that early May column on my blog at http://tinyurl.com/May5Column for instructions. 

Each voter has the right to his or her own opinion on this issue. The Gladbrook-Reinbeck School Board has expressed its opinion by passing a resolution pursuant to Iowa law, stating it is unanimously opposed to dissolution and of the opinion that a “NO” vote is appropriate in the upcoming election. The school board cited various reasons for its opinion, including the likely closing of additional school buildings, the elimination of nearly 100 teaching and support staff jobs, and the loss of high-quality programs and services offered by the district. G-R’s record of outstanding academic, athletic and fine arts accomplishments while maintaining one of the lowest school property tax rates in the region is also cited as a reason for the school board’s opinion. The resolution can be viewed at http://tinyurl.com/DissolutionResolution.

The outcome of the vote on September 12 will determine the future of the Gladbrook-Reinbeck Community School district.  Don’t miss out on your opportunity to participate in this important election.