Levy amounts to be finalized

POST FALLS - A buck a month.

That's what Post Falls School Superintendent Jerry Keane believes the district will need to increase taxes by for the average homeowner in a March 8 supplemental levy vote to maintain quality programs for students with another grim budget outlook.

Keane's recommendation to the school board on Monday at 6 p.m. at City Hall will be for a levy amount of $2.615 million per year for two years.

"If this levy is approved, it will increase the district taxes of the average Post Falls homeowner ($250,000 value) by only $12 per year," Keane said in his recommendation to the board.

A vote of at least 50 percent would be needed for a proposal to pass.

Post Falls' existing levy of $1.735 million per year for two years expires at end of the fiscal year on June 30.

Keane said the district realizes the possibility of having to raise taxes - even a small amount - is a "difficult conversation."

"We know our community is hurting as well," he said.

The district has had to ask voters to supplement the state's appropriation with a levy for at least the past 25 years. The money has been used to prop up technology, curriculum, maintenance and other programs.

Keane said he's making the recommended amount based on two factors.

"The district needs these revenues if we are going to be able to continue to provide quality educational opportunities to our students," Keane said. "The second criterion is that this proposal does not put a significant burden on our community during these difficult economic times."

Board member Dave Paul said he hadn't had a chance to consider Keane's recommendation, but believes the district has gone as far as it can with belt tightening without impacting programs.

"I believe the district has been extremely conservative over the past several years, and it's made every decision with the students and taxpayers in mind," he said. "I'm impressed with how the district has handled these economic times.

"The last thing that I ever want to do is raise taxes, but there gets to be a point where you can't cut anymore."

The district's budget has been cut by $3 million over the past two years - from $29.6 million in 2009 to $26.6 million this year.

As a result, across-the-board cuts occurred.

"The district has been able to make these reductions up to now without severely damaging opportunities for students and without substantial staff layoffs," Keane said.

The district will also see a reduction of $880,000 in federal funds going into the next budget cycle.

The funds supported salaries of several certified and non-certified employees.

"If we do not have this additional revenue, we will be forced to conduct a significant number of layoffs of both certified and non-certified positions," Keane said.

Layoffs, Keane said, would not only hurt student programs but contribute to the existing economic problems.

Compounding the funding woes is that legislators predict another bleak year for state money for schools.

"It is possible that we may receive another cut in our already reduced appropriation," Keane said.

The district has not increased taxes in more than a decade while at the same time constructing two new schools to handle growth, Keane said. It has not added positions or increased salaries during the recession.

The average supplemental levy for districts statewide is about 10 percent of the districts' budget, but it represents about 5 percent of Post Falls'.

Coeur d'Alene's school trustees will also meet Monday - at 5 p.m. at the Midtown Meeting Center - and decide what amount will be on the March 8 levy election ballot in that district.

The school board is expected to ask voters to replace an expiring $7.8 million levy, and could ask for as much as an additional $5 million, bringing the total levy amount to $12.9 million per year for two years.

Superintendent Hazel Bauman previously recommended to trustees that they set the levy amount at no less than $11.5 million, although $12.9 million is what it would take to stabilize this year's budget unless there are additional cuts made to state education funding during the next legislative session.

The grim fiscal situation in Coeur d'Alene is similar to that in Post Falls and in districts throughout the state.

Coeur d'Alene has already had to slash $8.8 million from its general fund since 2009, mainly due to reductions in state education funding.

Successful passage of a $12.9 million two-year supplemental levy would translate into an estimated $67 annual school tax increase for the owner of a home with $200,000 of taxable value.

The Lakeland district will not be floating a supplemental proposal as it is in the middle of its two-year levy.

Staff writer Maureen Dolan contributed to this story.