POSSIBLE LANGUAGE FOR 2004 THAT WOULD ALLOW BEAVER ISLAND COMMUNITY SCHOOL TO RECEIVE A SMALL SCHOOLS PAYMENT, AND YET LIMIT THE AMOUNT OF REVENUE NEEDED TO FUND THE PAYMENT:

20k(2) (b) At least 90% of the district's combined state and local revenue is from the district's local school operating revenue. As used in this subdivision, "combined state and local revenue" and "local school operating revenue" mean those terms as defined in section 20.
20k(2)(d) The amount of the payment under this section to each K-12 district eligible under subsection (2) shall be an amount equal to 1/2 or 1/3 or 1/4 or 1/6 of the state revenue derived for the calendar year ending in the immediately preceding fiscal year from the tax levied under that state education tax act, 1993 PA 331, MCL 211.901 to 211.906, on property located in the district, as determined by the department of treasury, not to exceed $875,000.00.

By limiting the payment to only those school districts that already generate more than 90% of their combined state and local revenue from non-homestead (local) sources, the actual cost to the state is minimal. According to spring 2003 figures from the House fiscal agency, only four K-12 districts might qualify for the payments at a total cost to the State of Michigan of no more than $875,000.00 and could be as little as $289,000.00

Collectively, the four districts that might qualify for this "Small Schools" Payment generate approximately $1,743,000.00 in State Education Tax Revenue yet, expect to receive less than $50,000.00 in State Aid this school year.

For the Beaver Island Community School District, if this went into effect based on 2003 Taxable Value:

1/2 of the S.E.T. revenue would equal $224,691.00
1/3 of the S.E.T. revenue would equal $149,794.00
1/4 of the S.E.T. revenue would equal $112,345.00
1/6 of the S.E.T. revenue would equal $74,897.00

Obviously, if the 1/2 is a possibility, that would best meet district needs, and, if it seemed likely that the payment would be a "one-time" payment, then the 1/2 would be necessary. If it looked like language could be inserted that would allow a multi-year payment, then the 1/3 or 1/4 would allow the district to run a quality basic K-12 program. Even 1/6 of the S.E.T. revenue would be helpful; it would at least allow us to keep the K-12 doors open.

Please feel free to contact the Beaver Island Community School District for more information and for ideas about other possible solutions to the issue. It is imperative that a K-12 district be maintained on Beaver Island.

Prepared by Kathleen McNamara, Principal/Superintendent
Beaver Island Community School / 37895 King's Highway / Beaver Island / MI / 49782
231.448.2744 kittym@beaverisland.k12.mi.us