Great Falls Public Schools board members will be asked during their Aug. 5 meeting to approve a request to access the full amount of Calumet Montana Refining’s protested taxes.
Calumet has filed multiple tax protests and appeals, impacting GFPS, as well as city and county budgets.
For the upcoming budget, $1,230,681.55 of the district’s tax revenue is under protest.
Of that, only about $20,000 is not Calumet’s protest, according to Brian Patrick, GFPS’ business operations manager.
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For municipalities, protested taxes are held in a different account and local governments can’t access those funds.
For school districts, GFPS can request permission from the County Commission to access those funds.
The protest affects cash reserves in each of the district’s budgeted funds and impacts its ability to pay its required debt service payments.
State law allows school districts to access protested tax funds and if the settlement requires some to be paid back to the appealing taxpayer, the law provides a mechanism for a permissive levy to recoup those funds.
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GFPS and the county went through that process in 2020, also due to a Calumet tax appeal.
Calumet has filed appeals for their 2022 and 2024 taxes.
Calumet and the Montana Department of Revenue met in May and the parties agreed to ask the tax appeal board to vacate their July 2 hearing to allow more time to instead file a status report on or before Aug. 20.
The board granted that request, David McAlpin, chair of the Montana Tax Appeal Board, told The Electric.
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In their motion asking for more time, attorneys for Calumet wrote that they are in discussions with DOR pertaining to both tax appeals and may be able to consolidate the dispute, reach resolution for both appeals or pare down the issues for one or both years.
The board budget committee discussed the protested taxes as part of the district’s overall financial picture during their June 24 meeting.
In March, the GFPS board voted unanimously to forgo a levy this year and also restructure the district administration to cut an assistant superintendent position in an effort to begin cutting costs knowing the budget challenges on the horizon.
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In a worksheet for the committee to review estimated shortfalls and known major expenses, Patrick included ideas of options to lower the deficits that include permanent budget cuts, analyzing vacant positions and planning for levies.
Since Heather Hoyer was selected as the new superintendent, effective July 1, she and the other assistant superintendents restructured their tasks and eliminated the position Hoyer formerly held, saving about $162,686.
Patrick said he’s working to have the board budget committee look at the big picture for the strategic plan rather than just the next budget year.
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He said the goal is to fund the district with existing general fund dollars and reserves, but if the Legislature doesn’t change the public school funding system, “we will have our backs up against a wall.”
Patrick told the committee during their June 24 meeting that if they intend to pursue levies to address funding shortages in the coming years, they need to plan ahead and start building plans for that and communicating with the community early.
Patrick said that all the AA schools in Montana are feeling the pinch of the state’s school funding formula and will likely be putting more collective pressure on lawmakers in the upcoming session to make changes.
Mark Finnicum, committee chair, said he didn’t want to tell himself that help is coming from Helena.
GFPS forgoes levy, cuts administrative position anticipating budget challenges
Bill Bronson, committee member, said that in representing the Great Falls Public Library in their discussions over management with the city, he’s seeing the needs of local government and the nervousness of officials as they know the taxpayers ability to absorb increased taxes is running out.
He said the Legislature will need to look at funding structures for local government in general.