Voters will decide a .95 mill increase to property taxes for Grand Rapids Public Schools on the Aug. 4 ballot. The new taxes would support a sinking fund for major building projects, generating an estimated $7 million annually.
The .95 mill increase would last for 10 years, the maximum allowed by state law.
“Sinking funds are a limited property tax used to fund building maintenance, infrastructure, and technology projects,” wrote Luke Stier, the GRPS director of communications via email.
Such funds are typically used for technology upgrades, major renovations, new building construction, and security improvements.
“Funding would focus on facility needs such as repairing roofs, updating plumbing, and ensuring HVAC systems and windows are efficient,” stated a district post.
GRPS current millage rate is 3.85 mills, one of the lowest among Kent County school districts. If passed, the millage rate would rank 21st of 27 districts.
“Unlike bonds, sinking funds do not create debt or incur interest. The tax is collected annually, and the revenue is specifically allocated for facility repairs and upgrades,” Stier wrote.
The Michigan Department of Treasury would audit the sinking fund expenses independently every year, and the district would post about fund uses on its website.
If passed, a homeowner with a home value of $300,000 and a taxable value of $150,000, would pay an additional $142.50 annually, about $12 a month.
Despite Improvements, Chronic Absenteeism at GRPS Above Pre-Pandemic Levels
Nearly three quarters of Grand Rapids voters approved extending the 3.85 mill rate for GRPS, which the district projected would generate $305 million, in 2023. Voters approved a 1-mill sinking fund in 2011, which expired after five years.
As part of the Reimagine GRPS with Us! Plan, the district has reduced its square footage to get rid of unnecessary expenses. As of 2023, the district had 1 million square feet of excess space. The board approved the sale of the Alexander and Stocking school sites in June, for $1 million each.
The proposed State of Michigan budget would provide districts with $10,300 per pupil. According to MI School Data, GRPS had 13,692 students enrolled in the 2024-25 school year, a decline of nearly 3,000 students from 2015-16. The district has budgeted $281 million for the 2026-27 school year.
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