2024 Non-Homestead Operating Millage Renewal

Dear Holton Community:

In the early 1990’s, voters in the State of Michigan approved Proposal A, which dramatically changed the way in which schools are funded. The intent of Proposal A was to accomplish two major goals. The first of those goals was to lower the property tax burden on local homeowners. The second was to stabilize the funding of local schools by closing the gap between the lowest funded school districts and the highest funded school districts in the state. While there is debate, and certainly no consensus on whether or not Proposal A was successful, it is clear that Proposal A did reduce the frequency of millage campaigns in local communities. The Holton Public Schools’ operating millage expires with the 2024 tax levy. The school district is seeking voter consideration of an operating millage renewal on the May 7 election ballot.

As a result of the passage of Proposal A, it is an expectation of the State of Michigan for school districts to levy 18 mills on non-homestead property as a component of the funding that schools receive in per pupil funding sources. To do that, Holton Public Schools is required to periodically ask its voters to consider the renewal of the non-homestead portion of the millage that the district levies. That non-homestead millage is paid by owners of commercial and industrial property and those who own second homes. Non-homestead property taxes are not levied upon a homeowner's primary residence, which means that the residents of Holton Public Schools, who own one home in the district, will not pay this tax on that home. 

The non-homestead property taxes represent approximately $944,000, or nearly 10% of the district’s annual operating budget. If the renewal is not passed, Holton Public Schools will lose this revenue from its 2024-2025 annual operating budget, as the state will not replace this funding through the per pupil foundation allowance that the district currently receives.

This goes without saying that May 7th is an important day for Holton Public Schools. Please consider the following points of emphasis as you make your decision regarding this matter: (1) This would be simply a renewal of the operating millage that has previously been levied on commercial property, industrial property, and second homes; (2) Homeowners would not be subject to this tax on their primary residence; (3) The revenue generated from non-homestead property taxes equals approximately 10 percent of the school district's annual operating budget; and (4) If the renewal proposal fails, homeowners will not see a decrease in their property taxes that they pay on their primary residence.

Please be sure to visit our website at: http://www.holtonschools.com for more information. Also, please feel free to contact me at: (231) 821-1700 or abayne@holton.k12.mi.us. Thank you for your time and consideration!

In Holton Pride,

Dr. Adam Bayne

Superintendent