EGRPS

Non-Homestead Millage Renewal

Tuesday, May 2, 2023

Community Presentations

• January 25, 2023 @ 6:00 p.m. - Wealthy Elementary PTO Meeting
• January 27, 2023 @ 8:30 a.m. - Middle School PTO Meeting
• February 14, 2023 @ 8:30 a.m. - Lakeside Elementary PTO Meeting
• February 23, 2023 @ 6:00 p.m. - Breton Downs Elementary PTO Meeting
• March 7, 2023 @ 9:00 a.m. - High School PTO & Academic Boosters Meeting

All community members seeking additional information, or having questions, may attend any of these presentations:

Questions may also be presented by email or phone to Anthony Morey, Assistant Superintendent of Finance and Operations

​

Email: amorey@egrps.org

Phone: 616-235-3535

Summary

• The Non-Homestead millage is part of the basic school funding system in Michigan

​

• Primary homeowners do not pay this millage ($0 per year)

​

• Renewal of this millage would allow the District to continue to receive the full per-pupil Foundation Allowance

​

​

What is a Non-Homestead Millage?

• State law requires a school district to levy an 18 mill property tax on non-homestead properties in order to receive the full per-pupil Foundation Allowance (determined annually by the legislature).

​

• Non-homestead properties include commercial, industrial, and rental properties. Second homes are also subject to this tax.

​

• Primary homeowners have a principal residence exemption from this tax and do not pay it.

How do Non-Homestead Taxes work?

• Each year counties calculate non-homestead property values and the state determines how much revenue a school district should receive through the non-homestead millage.

​

• If that amount is collected, then the school district will receive the full per-pupil Foundation Allowance for that year.

​

• If a school district collects less (or nothing), the state will not backfill those uncollected taxes and the district will not receive the full per-pupil Foundation Allowance.

​

• Voters must approve the non-homestead millage in order for the school district to levy it.

​

​

Current Non-Homestead Millage Facts

• The current authorization to levy a non-homestead millage expires after this year’s collection.

​

• In the 2022-2023 school year, the state expects the district to collect $1,671,732.

​

• In the 2022-2023 school year, the non-homestead millage accounts for $578 of the per-pupil Foundation Allowance.

​

• The non-homestead millage accounts for 6.3% of the total per-pupil Foundation Allowance in the 2022-2023 school year.

​

​

​

​

​

What does the Headlee Amendment do?

• Caps the growth of taxes collected to the rate of inflation, or 5%, whichever is less.

​

• If taxable values grow faster than rate of inflation, the millage is reduced so the dollars collected equal the rate of inflation (or the 5% max. increase).

​

• EGRPS non-homestead properties historically have increased in value above the rate of inflation often causing a millage reduction (sometimes below the required 18 mills).

​

• Since the state assumes the district will levy 18 mills, a reduction below that level results in less than the full per-pupil Foundation �Allowance being received by the district.

How does a Headlee Override work?

• State law allows voters to authorize an additional non-homestead millage to buffer the effects of Headlee reductions.

​

• Voters are asked whether to authorize two millages that work together to ensure the a school district can levy up to 18 mills in total.

​

• The District will never levy more than 18 mills as the ballot question and the law strictly forbids it.

​

​

Ballot Questions

Question 1: Would renew the existing millage and authorize 18 mills to be levied from 2024 to 2029

​

Question 2: Would authorize�a Headlee override if the non-homestead millage in Question 1 were to drop below 18 mills in the future due to Headlee reductions

​

​

What is the difference between the Non-Homestead renewal this May and the potential bond election under discussion in the coming November?

• The Non-Homestead millage supports yearly educational programming. Revenues are assumed to be collected as part of the per-pupil Foundation Allowance formula by the state.

​

• A bond election question, if placed on the November ballot, would be for specific facility projects. Any authorized funds can not be used for educational programming.

​

​

Summary

• The Non-Homestead millage is part of the basic school funding system in Michigan

​

• Primary homeowners do not pay this millage ($0 per year)

​

• Renewal of this millage would allow the District to continue to receive the full per-pupil Foundation Allowance

​

​

​

​

Questions?

​

Please Vote on May 2, 2023

​

For assistance with a voting question, please contact:

​

Lori Parmenter

EGR City Clerk

616-949-2110

Email: elections@eastgr.org

​

​

​