To help our community navigate how a Rural Housing Incentive District, RHID, impacts Pittsburg Community Schools, we've compiled answers to frequently asked questions.
According to figures presented by the City of Pittsburg, revenue generated off the increase in assessed valuation of improvements in Silverback Phase 1, over the 15 year period, would be about $1.3 million. This equals about $86,666 per year.
If families purchase homes in the newly developed area and those families have school-aged children who will attend one of our schools, this will add to the FTE and increase our overall general fund amount. An addition of 21 students is equivalent to one year of revenue generated off of Phase 1.
- Pittsburg Community Schools USD 250 will not lose any current tax dollars based on assessed valuation. At the same time, it does not stand to gain additional tax revenue during the Rural Housing Incentive District (RHID) timeline.
- Revenue not generated due to the RHID would be in the Local Option Budget (LOB or money raised through locally approved taxes which go to the school district) only. Capital Outlay (used for building expenses in the district) is exempt from the RHID.
So, the District would be able to generate additional revenue in that fund during the entire time the RHID is in effect.
- There will not be an increase in the LOB due to not generating revenue from Phase 1. School districts are only authorized by statute to generate 30% of the general fund budget each year in the LOB.
Pittsburg Community Schools has used the maximum 30% on the LOB for years and cannot increase it.
As other tax abatement projects come back on the tax rolls in the next few years, that will increase the overall district assessed valuation which will allow for additional revenue to be generated in the LOB. Unless the overall assessed valuation decreases in the district, the LOB will not decrease.
- State tax dollars come to us in the general fund and in "equalization aid."
The general fund is based on multiplying our FTE (Full Time Equivalent) student population, adding weighting for special characteristics and needs of students, multiplied by the Base State Aid per pupil (currently $4,006).
The BSAPP is scheduled to increase each year for the next 3 years, then increase by the Midwest Consumer Price Index in the out years. So, overall state funding will increase.
- It is a delicate balance for school districts when projects like an RHID comes along.
District completely understand they may not generate some tax revenue for a period of time, but this is balanced with the cooperation of community and economic development.
RHID's are a popular program authorized by the State Legislature used across the state to encourage housing development in rural communities by repaying infrastructure costs. It is popular because it does not place the burden of repaying a developer for infrastructure costs on current taxpayers (property owners). Rather it delays revenue generation for a period of time for some taxing entities.
- When the LOB was first created, it was utilized for extras. However, as any superintendent or Board of Education will tell you in our state, the LOB is heavily utilized in all areas to pay for all the things we do as a district. It is an integral part of our budget that we would not be able to operate without.