SUPPLEMENTAL LEVY ELECTIONTUESDAY, MAY 17 , 2011

Joint School District No. 2

Proposed Supplemental LevyIntroduction

On Tuesday, May 17, voters in Joint School District No. 2 (the “Meridian School District”) will be asked if they are in favor or opposed to a supplemental levy that would generate $18.5 million in local taxes for each of the next two years that would be used for school district operations.

The following presentation offers information about the supplementa levy and why it is being proposed.

After reviewing this information, if you have questions or comments please contact Eric Exline, Public Information Officer, Joint School District No. 2, at exline.eric@meridianschools.org.

2008-2009 2009-2010 2010-2011 2011-2012100,000,000

110,000,000

120,000,000

130,000,000

140,000,000

150,000,000

160,000,000

170,000,000

180,000,000

166,762,000163,696,000

147,557,000

140,457,000

State Revenue

From the 2008-2009 school year through this year, state revenue to JSD No. 2 decreased $19.2 million.

Based on this legislative session’s State appropriation for education, the district’s revenue for next year is estimated to decrease by an additional $7.1 million.Four-year decrease in state funding to Joint School District No. @: $26.2 million (15.75%)

State Funding for Joint School District No. 22008-2012

(Estimated)

Student Enrollment Growth 2008-2011

Since fall of 2008, the enrollment in Joint School District No. 2 has increased by 1310 students

2008-2009 2009-2010 2010-201132500

33000

33500

34000

34500

35000

33449

34120

34759

Student Enrollment

Budget Cuts, 2008-2010

•Reduced certified and administrative salaries by 7 days and classified salaries by 5 days.• One-time funds from federal jobs legislation restored 5 days

for building-level certified and administrative staff and 3 days for classified staff. The proposed supplemental levy will not result in these days, or their equivalent wages, being restored for the 2011-2012 school year.

•Reduction in employee benefits •Elimination of district funds for staff development program•Reduced school supply budgets by 30%• 15% in 2009-2010 school year• Additional 15% in 2010-2011 school year

•Reduced districts textbook accounts other than textbooks for new students• This year the district budgeted $48,000 to purchase

textbooks for approximately 600 new students; district textbook/instructional purchases have been postponed for 3 years to date.

Budget Cuts, 2008-2010

•Cut 11 district office positions•Decreased transportation budget by $1.1 million by consolidating routes and eliminating 1400 stops•$160,000 savings from re-negotiated copier contract•Moved certified and classified positions into expiring federal ARRA•Spent $11.5 million in school district’s reserve fund over last 3 years

Projections for the 2011-2012 School Year

Currently, district voters have approved $14 million in local property tax revenue that goes to school district operations.

•A $10 million supplemental levy was approved in spring of 2009, which expires this year•A $4 million transfer of plant facility revenue to district operations, which expires at the end of next (2011-2012) school year. If the proposed $18.5 million supplemental levy is approved, the transfer from Plant Facility to operations will no amount longer be levied.

The proposed supplemental levy would increase the amount of locally-generated operating revenue to $18.5 million, an increase of $4.5 million.

History of Levies in JSD No. 2

•The school district has maintained a constant levy rate since the mid-1990’s• Bond Levy• Supplemental Levy• Plant Facility Levy Levy Rate: .00323

•The ability to maintain a constant levy rate was made possible by a number of factors• Consistently increasing total property values in the district• Regular refinancing of past school bond measures• Adjustment of levies, such as the Plant Facility Levy, to hold the rate

constantPlant Facility: Amounts Levied

In May, 2007 voters in Joint School District No. 2 gave the district authority to levy up to $20 million per year to be used for building maintenance. As property values began to drop after 2008, to keep the levy rate constant the district decreased the amount levied. *In 2011, voters gave the district the authority to use $4,000,000 of the Plant Levy funds for operations. This amount was reported this year in tax notices as part of the district’s supplemental (operating) levy.

2007-2008 2008-2009 2009-2010 2010-2011$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$11,000,000

$20,000,000

$14,000,000

$6,400,000*

Drop in Market Value

Current Levies Amount

Bond payments $19.7 m

Supplemental $14 m

Plant Facility $2.4 m

Total $36.1 m

Total Levy Rate 0.003232008-2009 2009-2010 2010-2011 2011-2012$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00 $15.20

$13.20

$11.10 $10.10*

Between 2008 and 2011, the total value of the property in Joint School District No. 2 has decreased by $4.1 billion. Based on an estimate provided by the Ada County Assessor, next year’s total property value will decrease an additional 8% to 10%. Based on a 10% estimated decrease, the total market value of the district will have decreased 33%, or $5 billion, since 2008.If the district levies the same total amount for its bond payments, the supplemental levy, and plant facility levy next year, because of the projected decrease in market value the levy rate will increase by $34.4 per $100,000 of taxable value.

Current school district leviesSchool District Market Value in $billions

*Estimated 2010 market value based on a 10% drop in average property values.

Current and Proposed School District Levies

Current District Levies

2011-2012 School District Levies

Amount Amount Bond payments $19.7 m

Bond payments $19.6 m

Supplemental $14 m* Supplemental $18.5 mPlant Facility $2.4 m Plant Facility $2.8 m

Total $36.1 m Total $40.9 mTotal Levy Rate 0.00323 Total Levy Rate 0.00407

•The supplemental levy proposes raising the amount of local operating dollars by $4.5 million over its current levels in anticipation of a $7.1 million decrease in state funding. •Because of past refinancing of bonds, the total amount owed next year in bond payments will be slightly less than the current year. In order to meet critical needs for repair to school buildings, the Plant Facility budget will increase by $400,000 from this year’s level. •If the proposed supplemental levy is approved by voters, with the additional 10% drop in market value anticipated for next year and the changes to the bond payments and plant facility levy, the levy rate will increase from its current level of .00323 to .00407. This an increase of .008384, or $83.84 per year for a home with taxable value of $100,000. This estimate is based on a projected 10% decrease in the market value. The rate could vary based on an estimated market value drop of 8% to 12%.

Current Total Levy Rates of Treasure Valley School Districts

Boise Meridian Kuna Nampa Caldwell Vallivue Middleton Melba$0.00

$100.00

$200.00

$300.00

$400.00

$500.00

$600.00 $557.80

$349.13

$502.13

$377.25

$533.75 $505.30

$444.74

$500.00

Amount paid for school levies in area districts based on a home with $100,000 in taxable value.

Supplemental Operating Revenue and Decrease in Funding for 2011-2012

School Year

The proposed supplemental levy would increase the amount of operating revenue generated at the local level to $18.5 million, an increase of $4.5 million.

State revenue is calculated to decrease by $7.1 million; if the supplemental levy is approved by voters, the district will reduce its operating expenses by $2.6 million to meet the decrease in state revenue.

In addition, this year’s budget (2010-2011) included the use of $3 million of the district’s reserve account, reducing that account from $10 million to $7 million. This reduction was largely due to on-going expenditures. These ongoing expenditures will also need to be reduced or eliminated.

Supplemental Levy Ballot Question

Following is the question that will be presented to voters on Tuesday, May 17, 2011:

Joint School District No., Ada and Canyon Counties, IdahoSupplemental Levy

Shall the Board of Trustees of Joint School District No. 2 Ada and Canyon Counties, Idaho, be authorized and empowered to levy a supplemental levy, as permitted by law in Section 33-802(3), Idaho Code, in the amount of eighteen million five hundred thousand dollars ($18,500,000.00), each year for two years for a total of thirty seven million dollars ($37,000,000.00) for the purpose of paying all lawful expenses of maintaining and operating the schools of the District for the fiscal years beginning July 1, 2011 and ending June 30, 2013?

For supplemental levy of $18,500,000.00 each year for two years: Yes _____

No______

Polling Places

•All schools are not polling places

•Your polling place is the same as in the General Election in November

•If you are unsure of your polling place, you can where to vote at www.IdahoVotes.gov

•If you would prefer to vote early, you may request an absentee ballot at

www.idahovotes.gov/VoterReg/absentee.pdf