Oregon-Davis Referendum Should Not Impact Circuit Breaker

The Oregon-Davis proposed operating referendum will not impact the Circuit Breaker if approved. That information was received yesterday from Curt Pletcher of Umbaugh and Associates in Plymouth.

“With a referendum, a school corporation would have a question on the ballot which would have a maximum tax rate,” explained Pletcher. “When a school really pursues an operating referendum, they look at their state support for their General Fund. If a referendum is passed, it is not subject to the Circuit Breaker caps. In other words, the levy would not impact the current Circuit Breaker tax credits for the school or the overlapping taxing units.”

In a news story yesterday, it was speculated that the referendum might trip the Circuit Breaker, impacting other governmental obligations.

“An operating referendum has to go to the ballot and in some cases, school construction projects depending on the size, must be approved through a referendum process. If a school would pursue a construction project through a petition remonstrance process, that would be subject to the Circuit Breaker caps.”

Oregon-Davis Superintendent Dr. Steve Disney describes how the referendum will appear on the ballot.

“For seven calendar years immediately following holding the referendum, shall Oregon-Davis impose a property tax rate that does not exceed 19 cents each $100,” stated Dr. Disney.

Disney tells how much the requested 19 cent increase will bring in if the referendum passes.

“That 19 cents brings in $400,000 to make up for the State reduction in cuts. We’re talking, and this is from 2011, the taxpayer would see on a $75,000 home, which is half the homes in Starke County, $20 a year impact. On a $100,000 home it would be $37.86 and on a $150,000 home, $74.83.”