Monday, September 17, 2012

Can School Districts Run a Deficit? Part II

Earlier, I had asked this question because my automobile tax showed a charge for "District 7 Prior Year Deficit."  The auditor's office informed me that this was under the purview of the School Board.  Looking through the old minutes, I found reference to Act 388.  This act got a lot of attention at the time, because it replaced some property tax funding for schools in favor of a one percent sales tax increase.  It also allows, on a 2/3 vote of a school board, an increase in millage to cover a deficit.  So here's the basis in law, but I still haven't found the minutes in whcih the Board approved this. 

One takeaway from this: make sure you're informed about what's going at your local school board!

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