2008 Operating Millage Statement
April 17, 2008
The Ann Arbor Area Chamber of Commerce supports the proposed
Operating Millage restoration by the Ann Arbor Public Schools
(AAPS). Vote YES on the proposal to continue the Operating
Millage. This restoration proposal is on the May 6, 2008
ballot.
Facts
The proposal by the AAPS to continue the Operating Millage is a
continuation of 17.9694 mills, restored to 18 mills, that have been
in place since Proposal A (1994/1995).
The Operating Millage proposal:
- Authorizes an increase in the limit on operating taxes to 18
mills, of which all 18 may be levied on most non-homestead
property (business, industrial, commercial property, rental and
second homes) and not more than 12.4675 may be levied on
principal residences. Levies are based on taxable values
and will go up and down as these values fluctuate.
- Most of the authority is not levied on primary residences; of
the 18 mills, currently 4.7232 mills are levied on primary
residences to hold the AAPS harmless.
- Currently supplies 45% of AAPS’ operating funds, and 51% of
the AAPS foundation allowance.
- Is required so that AAPS can receive its full allocation of
operating funds from the Michigan legislature.
- Is funding that goes directly to AAPS to support key district
programs and operations.
In the first year of the millage, the impact on the
non-homestead taxpayer would be 18.00/$1,000 of taxable valuation
which is .03 mill more than non-homestead tax payers are paying
now.
For more facts and election information please visit the AAPS
Millage Restoration
website.
Position
The Ann Arbor Area Chamber of Commerce understands the
importance of quality public education not only for the
opportunities it affords students but also for the caliber of the
workforce it provides for business. With the expiration of
the existing 18 Mills Operating millage in 2009, we believe it is
reasonable for AAPS to ensure continued funding for its operations
with advanced planning by requesting renewal at this early
date. The question at hand is whether this renewal
proposal is the right plan.
A quality education system is important to the business
community, both in producing skilled workers for the future, and in
enabling businesses to attract the employees of today.
Through careful consideration and dialogue we believe the Ann Arbor
public school system has real needs in order to meet expectations
of the parents and children they directly serve and the business
community.
Members of the Chamber’s Board of Directors, the Chamber’s
Public Policy Committee, Budget/Millage Task Force and staff
devoted substantial time to review and discuss information provided
by the schools. Careful consideration was given to how the
proposed Operating Millage renewal meets our guidelines set forth
for tax related issues. We found the proposal to meet our
guidelines in several regards.
In addition to recognizing the significance of the operating
millage within the AAPS budget (45%), we note several areas of
progress within the AAPS that demonstrates fiduciary
responsibility, while maintaining the standard of excellence
expected in the community.
The schools shared data showing a reduction of over $500,000 in
legal costs over the past two years. They have also
eliminated an annual operating loss in their food service program
that the district experienced since 2002 and will this year have a
surplus of $500,000 based on their new food service contract.
The surplus this year provides the district with an over $900,000
positive impact to their operating budget as compared to FY
2007. The Chamber believes these actions demonstrate
important steps toward sound fiscal management of district finances
and operations. Additionally, the district has reduced their
operating budget by over $12 million in the past three years.
These reductions come from not only personnel reductions, but also
savings in their health care expenses by moving to the self-funding
of all non-teacher health care and capping expenses for teach
health care at 5% annually.
The AAPS recognize the benefits of collaboration with community
partners, including business, and regularly seeks opportunities to
achieve saving (through efforts with the WISD). Areas where
efforts have been or are being pursued include: human
resources, business services and operations, technology,
achievement and instruction, professional development, special
education, communication, and administrative services. The
Chamber applauds these collaborative efforts and encourages AAPS to
vigorously pursue these opportunities to increase operational
efficiency while reducing cost.
All of these efforts have been made in order to maintain their
core mission of providing extraordinary educational opportunities
for Ann Arbor students. Efforts are proven through results
seen in district averages for student achievement in areas of
reading and math. Students have consistently exceeded the
state averages among 4
th, 7
th, and 8
th graders. Student participation in the ACT is
also improving with 85% of 11
th grade students taking the ACT in 2007. The
State and AAPS recognize the impact of having students take the
ACT, the widely accepted test for college acceptance. With
their academic rigor, AAPS was ranked first in Michigan two years
in a row (2004-2006) in the number of Merit Scholarships awarded,
totaling $2.93 million. These are just a few of highlights of
excellence seen throughout the AAPS system and do not touch on the
many offerings in the areas of foreign language, arts and music,
athletics, and career and technical education.
For these reasons the Ann Arbor Area Chamber of Commerce urges
your support and YES vote for the AAPS 18 Mills Operating millage
restoration.
