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Ottumwa addresses its budget
Posted: 07.06.2011 at 4:43 PM
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OTTUMWA -- With the passing of the state budget last week, school districts can finalize their own numbers when it comes to their budgets.

KTVO spoke with John Donner, business manager for the Ottumwa school district.  Donner says there will be a 0% growth in the district’s per pupil amount.  The formula in place now will allow the school’s budget next fiscal year to be guaranteed 101%.

Declining enrollment will hurt the district though in the next couple of years.

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“We’re going to end up with the same amount of money for our general fund that we had for last year,” said Donner.  “The problem with the no increase in allowable growth is that will carry over from now and so we’ll never catch that money back up.”

Donner has been watching the negotiations for the new state budget over the past months.  He added that it’s been difficult to plan even though the numbers weren’t that different from what he thought they would be.

One of the biggest issues facing school budgets is the issue of property taxes.  Governor Terry Branstad is asking for property tax relief in commercial zones.

Property tax reductions on commercial land would have a direct impact on residential areas.

“Obviously as the tax base goes down that's that much less taxable value we can apply our formulas to.  May cause an increase in residential property tax depending upon how far it goes."

Donner says that right now property taxes in Ottumwa will remain at their current level.

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