Community to consider Troy school operating millage renewal proposal

By: Sarah Wright | Troy Times | Published October 9, 2024

TROY — In November, voters in Troy will decide a Troy School District operating millage renewal.

The proposal would renew both the non-homestead operating millage and the hold-harmless millage.

“There are no proposed increases to either of these millages, but rather just renewing them,” Assistant Superintendent of Business Services Daniel Trudel said in an email. “These millages are used for operational expenditures, such as salaries, benefits, teaching supplies, utilities, etc. If the millages do not pass, we will be forced to reduce compensation and programming for our students. This would be detrimental to providing a world class education for our students and community.”

The non-homestead millage would only apply to businesses, second homes, vacant land, and rental properties. All Michigan school districts are required to levy 18 mills on non-homestead property in order to receive state aid in the form of a determined student foundation grant amount. The hold-harmless mills apply to primary residences.

One mill equals $1 for every $1,000 of taxable value.

“By law, we are required to levy (with voter approval) a non-homestead operating millage in order to receive our full foundation allowance,” Trudel said in an email. “If a district does not levy a non-homestead operating millage, then about 15%-20% of their foundation allowance would go away. This operating millage generates around $32.7 million annually.”

The hold-harmless millage, which was first approved by voters in 1994 with the passage of Proposal A, applies to all properties.

“The hold harmless millage is authorized by the state specifically for districts that have a foundation allowance that exceeds the state’s minimum foundation allowance,” Trudel said in an email.

“When Proposal A was adopted in 1994, districts were to calculate what their equivalent ‘per pupil’ funding was in the prior year before there was a foundation allowance. This calculated per pupil amount was then compared to the per pupil foundation allowance that the state determined to be the new “minimum” in 1995. Some districts had a calculated per pupil funding amount that exceeded the new minimum state foundation allowance. In order to hold those districts harmless, the state authorized (with voter approval) the levy of a hold harmless millage to ensure the equivalent amount of per pupil funding would be met. This hold harmless millage generates around $9.8 million annually.”

If this proposal isn’t renewed, the school district could likely lose around $42.5 million in operating revenue, and its educational programming may see considerable reductions.

“The non-homestead operating millage and hold harmless millage are fundamental to the Troy School District’s financial stability, enabling us to deliver a world-class education,” Superintendent Rich Machesky said in an email.

“These critical funding streams allow us to sustain comprehensive academic programs, attract and retain top-tier teachers and staff, and ensure our students are provided with the best opportunities for success. This is a renewal of our expiring millage and does not represent an increase for our taxpayers. Without these millages, we would face significant budget cuts that could jeopardize the high-quality education our community expects and deserves.”

Voters in the district may consider voting on this item at the polls Nov. 5 or via absentee ballot.

According to the item on the ballot, the proposal would renew the authority of the school district to levy up to 18 mills for general school district operating purposes on non-homestead property in the district and would “restrict the levy on principal residences (owner-occupied homes) to no more than 5.7049 mills and protect against the impact of Headlee rollbacks of up to 4.0 mills.”

It would “continue to levy on principal residence property (owner-occupied homes) only that portion of the mills necessary to allow the school district to receive the full revenue per pupil foundation allowance permitted by the State. The school district only levied 2.7936 mills on personal residences (owner-occupied homes) in 2024.”

For more information, visit troy.k12.mi.us/about-us/millage-renewal or troymi.gov/departments/city_clerk/election_information.php.