Elections

A non-homestead millage is levied on businesses, rental property, vacant land, and second homes.  It DOES NOT apply to a family’s primary residence (the home they live in).  If voters approve the May 4th non-homestead millage, there will be no change in the tax rate on homes in which residents live.

Several years ago, the State of Michigan changed the way it funds schools.  All home-owners now pay 6.0 mills on their primary residence (or homestead).  The non-homestead tax is levied on businesses, rental property, vacant land, and second homes (“non-homesteads”).  By State law, school districts must levy 18 mills on non-homestead property to received their full share of State Aid.

The non-homestead millage accounts for about 12 percent of the school district’s operating budget.  The operating budget funds the day-to-day operation of the school district.  This budget provides funding for virtually everything it takes to run a school districts, including books, technology, staff salaries, lights, heat, insurance, custodial maintenance services, etc.  Hence, non-homestead millage affects all students attending the West Bloomfield School District. 

Under certain conditions the “Headlee Amendment” to the Michigan Constitution requires roll- backs in the non-homestead millage (a Headlee rollback).  If and when these roll-backs occur, a school district is forced to levy less than the 18-mill limit on non-homestead property.  When a school district’ non-homestead millage levy is less than 18 mills, the school district does not collect the legally limited 18-mill non-homestead millage and does not receive its full share of State Aid funding.  

Headlee roll-backs that have occurred since West Bloomfield School District voters last approved the 18-mill non-homestead millage in 2014 have cost the school district $1.3 million in funding.  

Every Michigan school district is forced to return to the voters every few years for approval to restore the 18-mill non-homestead millage.  This is an unintended consequence (and additional cost) of the Headless Amendment to the Michigan Constitution.

All residents, including parents and residents without school-age children, benefit from quality schools.  Realtors, for example, are quick to point out that a quality school district helps maintain property values in a community.  

Voter approval of the May 4th operating millage proposal will enable the school district to levy the 18-mill statutory limit on non-homestead properties, eliminate related reductions in the operating budget, and allow the school district to collect its full share of State Aid funding. 

Non-homestead millage is used to finance the day-to-day operating expenditures of the school district.  Levying the statutory 18-mill limit on non-homestead properties generates approximately $8.2 million (or about 12 percent of the West Bloomfield School District’s operating budget).

The 18-mill non-homestead millage approved by West Bloomfield voters in 2014 has been “rolled back” per requirements of the Headlee Amendment to the Michigan Constitution.  The result has been operating revenue losses totaling more than $1.3 million over the past six years.  The May 4th non-homestead operating millage proposal is not asking for more money; it is asking for the funding that West Bloomfield School District voters originally approved in 2014.

If the May 4th ballot proposal is not approved by voters, the school district will lose more than $691,000 from its operational budget every year.  Since the State Aid calculation assumes all school districts in Michigan will levy the full 18 mills on non-homestead properties, the school district’s State Aid will be reduced annually by more than $128 per student (or approximately $691,000).  Maintaining a balanced budget as required by Michigan law would likely result in significant reductions in educational programs and services if the May 4th operating millage proposal is not approved by voters.

Surveys indicate that most business owners support the 18-mill non-homestead levy.

If the non-homestead millage is approved by voters, the resulting revenue will be used to support the existing operating budget.  If the non-homestead millage is not approved, new staff and class size reductions will not be a feasible option.

Each non-homestead parcel is different.  The levy on non-homestead property will be $2 per $1,000 of assessed valuation.

The school district will maintain both an in-person and virtual learning option for the balance of the year because that is what parents want.  Further, the costs related to having all students receive 20 percent of their schooling in person exceeds relief money available from the State of Michigan.  Maintaining both options also will allow the West Bloomfield School District to accommodate any COVID-related in-person closures (like those that are affecting many Michigan school districts).

Currently, there are no plans to close any school buildings in the West Bloomfield School District.

Public schools in Michigan receive most of their funding on a per-pupil basis from the State. The amount a school district receives per pupil is called the Foundation Allowance. The per-pupil foundation allowance for West Bloomfield School District is $9,156. This represents a major portion of West Bloomfield School District revenues and is funded from two sources:  

1. local revenue – 18 mills collected on non-homestead property (currently $1,521), and 
2. state revenue (currently $7,635 per pupil).

It’s a legal requirement. To receive their full share of State funding, all Michigan school districts must levy 18 mills on non-homestead property and six mills on homesteads (the homes in which people live). This law applies to every Michigan school district.