Alpena Public School District voters will have the opportunity to vote on an operating millage renewal proposal. On the ballot will be a Non-Homestead millage to levy 18 mills enabling the District to receive the full per-pupil allowance and restore millage lost to reduction. 

What does Non-Homestead mean? Non-homestead represents industrial, commercial, apartment buildings, and some agricultural property and “second homes.” It does not include a family’s primary residence. 

How does this millage support the District’s funding? Michigan schools are funded under a structure created when Michigan voters approved Proposal A in 1994. Under this proposal, Michigan schools are funded with a total of 24 mills on non-homesteads. This is made up of a statewide millage rate of 6 mills on all properties and 18 mills on non-homesteads. The 6 mills go to the State of Michigan to help fund the School Aid Fund. The 18 mills go directly to the district and are deducted from the per-pupil allowance the state provides to the district. When the 18 mills are reduced due to a Headlee rollback the state does not make up the difference. The district then receives a lesser per-pupil allowance. 

Is this a new tax? No. This tax has been in place since 1994. The voters last renewed this millage in August of 2016. The district has voter approval to levy this millage through 2024. 

Will my residential school taxes increase? No. This tax is on non-homestead property and does not apply to your primary residence. 

How much will this cost my business? Currently, a business with a taxable value of property established at $200,000 pays $3,555.38 ($200,000÷1,000)x17.7769. This millage would allow the district to once again levy the full 18 mills which, for that same business, would be $3,600 annually ($200,000÷1,000)x18, a change of $44.62 for the year. 

What is the district currently able to levy? Currently, the district is losing funding under a Headlee rollback and is only able to levy 17.7769 mills. Headlee rollbacks occur when the increase in property values out paces the rate of inflation. To date this rollback has cost the district $233,590.78. The State of Michigan does not make up this reduction. 

Can the district use bond money to cover the loss if this is voted down? No. Although the district has received revenue from a bond for district improvements, those funds are restricted by law to specific uses, which do not include general operating expenses. 

What if the millage is not approved? The estimated revenues generated from the 18 mills total $9,743,659 annually. The State will not replace the funding and Alpena Public Schools would be forced to reduce and cut programs to offset the loss. 

Paid for by: Alpena Public Schools 2373 Gordon Rd. Alpena, MI 49707