Walled Lake Consolidated Schools has a millage proposal on the ballot next month.

Photo by Patricia O’Blenes


Walled Lake Consolidated Schools seeks millage replacement

By: Mark Vest | West Bloomfield Beacon | Published October 3, 2024

WALLED LAKE — Following the passage of a $250 million bond proposal in May, Walled Lake Consolidated Schools is hoping that voters support another ballot initiative in November.

This time around, the district is seeking a replacement of its operating millage — an 18-mill non-homestead tax on business and other properties,  and a 3.6297-mill “hold harmless” levy on homes.

Non-homestead properties consist primarily of businesses, rental properties, vacant land and secondary homes within the district’s boundaries.

The district’s plan is to restore the millage rate to 18 mills, which was previously approved by voters in 2014 and is set to expire in 2025. However, due to the Headlee Amendment, it has been rolled back over the course of time.

The Headlee Amendment to the Michigan Constitution requires local governments, including schools, to reduce their millage rates if taxable values go up higher than the rate of inflation.

By law, only 18 mills can be levied on non-homestead properties.

If approved, the proposal would be in effect until 2037.

“This is $33 million of the district’s $187 million revenue budget, or 18%. Every district in the state is expected to levy, with voter approval, 18 mills on all non-homestead properties (businesses) in order to receive full state funding,” a press release from the district states.

The release goes on to state that a 3 mill “Headlee cushion” would allow the district to collect “the full 18 mills over the duration of the operating millage.”

The hold harmless millage was approved by voters in 1994 with the approval of Proposal A and applies to all properties.

According to the state of Michigan’s website, at the time of Proposal A’s enactment, some school districts’ foundation allowances exceeded the established minimum, and those districts are referred to as hold-harmless districts, because they were allowed to levy the difference between prior funding levels and the newly set minimum on residential properties.

According to the district’s website, the operating levy on homestead properties, or residential property, is the hold-harmless portion. It’s capped at the amount necessary to ensure that the district’s combined state and local revenue equals the per-pupil amount allowed under the state’s funding system. The district said that the proposal authorizes up to 3.6297 mills, but only 0.3086 mill was levied. “As the state assumes more of this obligation through legislative changes in the foundation allowance, the residential portion of the operating millage (Hold Harmless) will continue to decrease,” the website states. That occurred in 2021-22, dropping the allowable rate from 1.55 to 0.47 mills.

“When we passed our operation millage last time, we passed it for 18 mills. And then over that time period it’s been reduced to about 16.7, 16.8, somewhere in there,” said Walled Lake Consolidated Schools Superintendent of Schools Michael Lonze. “And so that means that the state of Michigan thinks we’re collecting 18 mills this year, and we’re only collecting, we’ll call it 16.7 mills this year. … And so for us, every year that we don’t renew this or replace it, we’re losing more money from what the state of Michigan says we should be collecting. And so that’s why we’re going for the 18 mills, with what we’re calling a cushion of 21.

“It really comes down to money to help us operate the district,” Lonze said. “This is money that goes directly to our general fund. Most of that goes out to help pay for our staff – about 85% of our budget is staff-related.”

According to Lonze, there are approximately 1,250-1,300 employees in the district.

Unlike bonds, which are used to pay for things like the construction and remodeling of facilities, safety and security upgrades, the purchase of technological equipment and infrastructure, and equipment and furniture, operating millages pay for operating expenses, facility maintenance and staff pay.

Sinking funds and bond money cannot be used for those purposes.

As for the money that does not go to pay for staff, according to Lonze, the other 15% goes for things such as utilities and school supplies.

He also cited financially supporting athletics in the district.

“And, unfortunately, we’re still under-funded in our special education department by about $8 million a year, and that’s every school district, at least in Michigan,” Lonze said. “In Michigan, every school district is under-funded, and so we have to take $8 million out of our general fund and move that to support our special education students, which we need to do and it’s the right thing to do. That’s another way we need this money, is to make sure that we can support all of that other 15% that’s out there that help us be what I would consider a well-rounded, comprehensive school district.”

According to its website, the district was unable to collect over $13 million in operating revenue the past 10 years because there wasn’t a “Headlee cushion.”

According to Stephanie Kaplan, who is the president of the Walled Lake Consolidated Schools Board of Education, the district is losing money as a result of the Headlee Amendment.

Having the proposal placed on ballots was unanimously approved by board members.

“We need to go forward because of budget cuts that we had and where we’re at,” Kaplan said. “We needed to put it on the ballot so that we can try to get the monies that are due to Walled Lake Schools.”

For a non-homestead millage restoration and hold-harmless renewal proposal, all registered voters residing in the school district can vote on it.

The increase they could see depends on the taxable value of their respective properties.

One mill equals $1 for every $1,000 of taxable value, with 18 mills equating to $18 per $1,000 of taxable value.

The exact cost of the millage for businesses and secondary homeowners is on a case-by-case basis.

“I wouldn’t know the average cost because it’s such a variable – what the value of that property is according to the state, (because) it is based off of state taxable value, not what you and I would consider property or straight value,” Lonze said. “There’s a big difference between those two.”

Kara Chirri is the owner of Bubble Shack, which is an ice cream shop located on Walled Lake Drive. When it comes to the proposal, she has considered both sides of the equation.

“That’s something I’d have to think about because we don’t (want to) raise our tax, but yet it would be good to give back to the schools more,” Chirri said. “With our economy the way it is right now, it’s tough for us business owners, but at the same token it would be helping the kids in the school district.”

Although Lonze is not anticipating that there will be a problem getting the millage passed, he was asked about what could be cut if the proposal fails.

“Some of our highest cost areas are busing, athletics, (and) co-curricular and extra-curricular areas,” he said. “We would have to put everything on the table when we’re looking at a $33 million reduction. We would be in a very challenging place. But, fortunately, I don’t think we’re (going to) have to worry about that, and so we’re not spending a lot of energy on that right now.”

According to the release, the proposal will not increase property taxes on primary-residence properties that are within the boundaries of Walled Lake Consolidated Schools.

From Lonze’s perspective, the important part for community members to know is that it is a replacement and not a new millage.

He also shared another message for residents.

“The No. 1 thing that I’m asking all of our community members that are registered voters is to be informed when you vote and to make sure – flip the ballot over,” Llonze said. “That’s critically important, because I believe in all of our municipalities the millage is on the backside of the ballot, so they have to flip it over to vote for the millage.”

For more information, visit wlcsd.org/elections.