TONTOGANY – It’s been more than 20 years since Otsego Local Schools asked its taxpayers for more money.
For the first time since 2002, the district is asking on Tuesday for support of a 0.5% income tax.
The tax, which is for a continuing time, would collect $1.9 million once fully collected after three years.
It will be used purely for operating expenses, such as fuel and utilities, said Superintendent Kevin O’Shea.
“We have not seen an increse in revenue in 20 years and expenses keep getting higher and higher, things we can’t control,” he said.
Without the extra income, the district will continue to spend more than it takes in for each of the next five years and is expected to reduce its unreserved cash balance to $2.51 million at the end of fiscal year 2027.
“We’re either gong to need an increse in revenue or find a way to balance the budget,” he said.
O’Shea explained many of the district’s expenditures are mandated by the state, including special needs services to students. There also is the cost of updating safety measures.
“Those are expenses that are hard to cut,” he said.
The last time the district asked voters for new operating money was in 2002 with a 1% income tax, O’Shea said.
He said the board chose an income tax over a property tax because it’s more proportional.
“When you have a good year, you pay more. When you have a bad year, you pay less,” he said.
He also pointed to the large agricultural community in Otsego, and with the property reappraisals that were done, “we didn’t want to put an extra burden on them,” O’Shea said.
Three times in the last 10 years the district put a levy on the ballot only to pull it off when additional funds became available. One time was after a re-evaluation of property, then Nexus came to town, and finally the COVID grants.
