T-R PHOTO BY ADAM SODDERS - Anson Elementary students load onto a school bus at the end of the day Monday. The FY 2020 Marshalltown Schools budget proposal calls for about $2 million for student transportation.

The Marshalltown School Board took the next step toward certifying the upcoming fiscal year’s budget Monday by setting a date and time for a public hearing on the proposed budget.

One of the major changes coming to next fiscal year’s budget is an increase in the district property tax rate. That rate is set to jump 34 cents from the current $17.99 per $1,000 valuation to $18.33 per $1,000 valuation.

“That $18.33 mirrors where we were at in Fiscal Year 2016,” said Superintendent Theron Schutte.

There are several factors that play into the annual property tax rate from the district. This year, Newbold said two of the main reasons for the increase are the district’s participation in the budget guarantee program and the district’s solvency ratio.

The budget guarantee kicks in when the state per-pupil funding increase given to a district by lawmakers is not enough to make up for money lost when resident students leave the district. About 93 students left Marshalltown Schools as of the October 2018 certified enrollment count, which Schutte said was likely a result of the July 19 tornado displacing families.

The budget guarantee acts as a cushion to limit those districts’ losses for a year. It is part of the state’s school finance formula, and it is paid for entirely from property taxes – Newbold estimated the property tax impact for Marshalltown to be about 24 cents per $1,000 valuation of the 34-cent increase proposed for FY 20.

The proposed budget also shows the school board’s interest in increasing the district’s solvency ratio.

“This is what we use to manage our short- and long-term demands on cash,” Newbold said of the ratio.

She said the district’s goal is to have its solvency ratio at 8 to 10 percent, while this year the ratio is projected at about 2.5 percent.

“It’s going to take several years to get it back up to where it needs to be,” Newbold said.

Here are some of the instruction line items set out in the FY 2020 budget proposal:

• $2.7 million for student support services

• $4.57 million for instructional staff support services

• $1.2 million for general administration

• $3.4 million for school/building administration

• $1.77 million for business and central administration

• $5.18 million for plant operation and maintenance

• $2 million for student transportation

District citizens who want to give their input on the budget proposal will be able to share their thoughts at a special session 5 p.m. April 8 at the Central Administration Office, 1002 S. Third Ave.

A summary of the proposed budget line items can be seen at https://www.boarddocs.com/ia/mcsdia/Board.nsf/Public under the March 18 meeting tab.

The next Marshalltown School Board meeting is set for 5 p.m. April 1 at the Central Administration Office.

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Contact Adam Sodders at

(641) 753-6611 or

asodders@timesrepublican.com