Royal Valley's 2024-25 mill levy rate unchanged from last year

The Royal Valley Board of Education is proposing the same mill rate as last year to fund the district’s 2024-25 budget. 

Due to a new state law that increases the residential property tax exemption from $42,000 to $75,000, the district is expected to collect $34,286 less in local taxes with the same mill rate of 45.247 mills.

With the passage of Senate Bill 1, property owners are receiving a tax cut. In previous years, $42,000 of the appraised value of residential property was exempt from the statewide school finance levy. Now $75,000 of appraised value is exempt. 

While the district’s overall assessed valuation for its capital outlay fund increased by $1,512,714 this past year from $42,317,965 to $43,868,729, the assessed valuation for the general fund dropped $3,530,297 from $35,188,761 to $31,658,464 due to the higher exemption rate, Superintendent Aaric Davis said. 

Since the state school finance formula is equalized, about 91 percent of the district’s general fund was funded through state aid last year, Davis said. 

“Now we’re going to be receiving 92 percent in state aid and only generate about eight percent of the general budget,” Davis said.  

During the Royal Valley Board of Education meeting on Monday evening, board members approved a proposed budget for publication funded by 45.247 mills, which is the same rate used to fund last year’s budget. The board budgeted 43.246 mills during the 2022-23 school year.

The board’s proposed budget includes levying 20 mills for the general fund, 17.478 mills for the Local Option Budget (LOB) and 7.769 mills for capital outlay. 

For the 2023-24 budget, the district levied 20 mills for the general fund, 17.247 mills for the LOB and 8 mills for capital outlay. 

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