The Andes Central School Board voted to approve a $400,000 general fund opt-out for ten (10) years. The first question most may ask is “why is an opt-out necessary?” And, the second question may be, “how will this affect my taxes?”

Why is an opt-out necessary? Heavily impacted-b2 eligibility criteria for Andes Central is based on taxing at 125% of the state average or generally comparable school districts. According to data provided by the Impact Schools of South Dakota Association, Andes Central has met the 125% of state average criteria through the 2017-18 school year which will be utilized for b2 payments in the 2020-21 school year.

A large number of school districts are currently operating on opt-outs. These opt-outs increase the statewide average. The statewide average school district General Fund tax levy is 16.013 per thousand valuation, while Andes Central’s calculated total levy is 20.068 per thousand valuation or 125.32% of the state average. These figures are based on 2017-2018 statewide educational statistics. It is estimated that the district may fall short of the 125% of the state average in 2018-2019 as official data from the US Department of Education Impact Aid Program has not yet been released.

How will this affect your taxes? For the past nine years, the Andes Central School Board has offset the current opt-out of $300,000 by not levying taxes in the Capital Outlay fund. The School Board plans to continue to offset the new $400,000 opt-out by reducing the Capital Outlay levy by a like amount. By reducing the Capital Outlay levy, taxes will be lower for Ag and Owner Occupied properties. Taxes will increase for Other Property. Increasing the opt-out from $300,000 to $400,000 will create a slight increase in taxes.

If you have any questions, please feel free to contact any school board member, who would appreciate the opportunity to answer questions you may have.