Operating Millage Renewal

Understanding the Upcoming Millage Renewal

This November, the New Buffalo community will have an important decision to make regarding the renewal of the Non-Homestead Operating Millage, a critical component of our school district’s funding. Since the 1990s, this millage has provided essential financial support to New Buffalo Area Schools (NBAS), enabling us to deliver high-quality education and maintain our role as a central hub of the community.

With the funds generated from the Millage renewal, New Buffalo Area Schools is an award-winning district that provides high quality education to our students. As of September 2024, we received notice that our M-STEP scores have ranked in the top 10 of the State of Michigan and #1 in Berrien County. In addition to an excellent academic experience NBAS also provides Daycare for children ages 2.5 - 4, free pre kindergarten for children ages 4, free after school care for children in grades K - 5, and $25,000.00 per student that wants to continue their post education dreams (which might be a college or a trade school). Many students are accepted into prestigious universities to continue their educational dreams. NBAS is committed to our mission statement of every student every day.

What is the Non-Homestead Operating Millage?

The Non-Homestead Operating Millage is a tax levied on non-residential properties, including businesses, rental properties, and non-homestead homes. It is important to note that primary homeowners are exempt from this millage and do not pay anything toward it. This renewal is not a new tax; it simply continues the existing levy, which has been in place for decades. This renewal will not increase taxes on non-homestead properties.

Why is This Millage Important?

Approximately 78% of the school district’s budget comes from the Non-Homestead Operating Millage. These funds are critical for covering day-to-day operations, including staff salaries, utilities, curriculum materials, and maintenance of school facilities. Without this millage, NBAS would face a severe shortfall of approximately $17 million annually, which would necessitate drastic cuts to programs and services that our students and community rely on.

How Does NBAS Use Additional Funding Sources?

In addition to the operating millage, NBAS benefits from funds provided by the Local Revenue Sharing Board (LRSB). There are misconceptions that the Casino funds the school district. NBAS is thankful of the compact created by the Casino, the State of Michigan, and the Pokagon Band of Potawatomi. The LRSB allocates 2% of electronic gaming revenue to local municipalities and NBAS which was approximately $1.2 million last year. These funds are used to support the New Buffalo Bison Education Trust, which offers scholarships of up to $25,000 to graduating students, helping them pursue further education.

Will Tax Rates Increase?

There will be no tax increase for both primary homeowners and non-homestead as a result of this millage renewal. The millage rate for non-homestead properties has remained unchanged since 1994 and will continue at the current rate of 18 mills if renewed. This ensures that NBAS can maintain its current level of operations without additional financial burden on residents.

This November

Without the renewal of the Non-Homestead Operating Millage NBAS will not be able to continue the current operational levels of the school system. By staying informed and understanding the role of this millage, community members can make an informed decision this November!

For more information about the millage renewal and how it impacts New Buffalo Area Schools, please visit https://www.nbas.org/page/millage.