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Highlands School District Maintains Tax Rate Amid $4M Budget Shortfall

The Highlands School District is set to hold the line on property taxes for the fourth consecutive year, despite facing a $4 million budget deficit in its upcoming fiscal plan.

Finance Director Paul Paradise highlights the district’s fiscal discipline, noting that only eight schools in the county have avoided tax increases over the past three years—and Highlands is one of them.

Key Budget Decisions

• Provisional budget of $58.5 million to be voted on next Monday
• Tax rate remains unchanged at 25.13 mills
• A homeowner with a median-valued property ($123,500) will pay the same $3,103 in taxes as last year
• Each mill generates $1.03 million in revenue for the district

Budget Breakdown: Revenue vs. Expenses

• Projected revenue: $54.6 million
• Projected expenses: $58.5 million
• Deficit covered by reserve funds

Where the Money Goes

• 1.2% increase in operating costs (from $54M to $58.5M)
• Salaries & benefits account for two-thirds of expenses ($37M, up $2M)
• Cost per student: $27,775 for 1,952 pupils
• Rising costs in transportation, construction, and equipment

Capital Investments

• $1.6M allocated for projects, including:
• New turf at Golden Rams Stadium
• District-wide paving improvements

Stable Revenue Streams

• Local sources: $22.3M
• State funding: $30.9M
• Federal funds: $1.3M

The final budget will be approved at the June 15 meeting, setting the stage for another year of financial prudence.