What Else Should I Know About Prop 3?

School financing is broken down into four fund categories. Each fund category can only be used for specific items under Missouri law. Each category has a coordinating tax rate that is set annually. Currently, the tax rate associated with Rockwood's Debt Service Fund is more than necessary thanks to aggressively paying down the debt, higher assessed values and taking advantage of strategic refinancing opportunities to save taxpayer dollars.

The long-range strategic plan has called for a transfer of funds from Debt Service to Capital Projects, and that can only be done through voter approval.

Restructuring the tax rate will allow the district to allocate annual resources to safety, technology and facilities with zero change to the overall tax rate.

Rockwood has traditionally funded our safety, technology and cycle maintenance needs by issuing general obligation bonds. The current Debt Service levy of $0.6800 provides the funding for the repayment of principal and interest on our outstanding debt.  Based on the higher interest rate environment and the responsible structuring of our outstanding debt, the district is in a position to transfer a portion of our Debt Service levy to the Operational levy in the Capital Fund without increasing the overall tax rate.

Going to the voters for a bond issue every two to five years to fund annual safety, technology and facility needs is not a fiscally-responsible way to fund these types of expenses. Each election costs taxpayer dollars, regardless of the outcome. Each successful election involving a bond issue costs taxpayers millions of dollars in interest on those bonds to fund annual expenditures. In the last five years, Rockwood has spent over $40 million in interest on its debt.

Restructuring the tax levy, without raising the overall rate, is the most fiscally-responsible way to fund annual projects and ensure the district is being good stewards of taxpayer dollars. Missouri law dictates that the district needs voter approval in order to do that.

Additionally:

• The district would still need to go to the voters for any new facilities or significant additions to existing facilities in the future.
• Rockwood is the only district in Missouri to hold a AAA rating, the Meritorious Budget Award and two certificates of excellence for its financial reporting.
• The zero-tax-increase levy transfer has been part of the long-range financial plan since 2014.

There is no expiration on the levy transfer because these annual needs will not go away. With a bond issue, “one-time” projects are identified and funded by the bonds. We are looking to fund ongoing safety, technology and facility cycle maintenance needs across the district on an annual basis, without borrowing funds and incurring interest.

Prop 3 does not provide funding to catch up on all projects, which will then no longer be required (and expire). Technology and safety updates will be ongoing as those items are ever-changing and improving. The life of a Chromebook is approximately five to six years, for example. With 3.8 million square feet of space to maintain, the district will continue to have needs with regard to facilities on an annual basis. Those needs include, but are not limited to, HVAC, flooring, roofing, paving, elevators and ADA lifts, as well as playground equipment. As our buildings age, there will not come a time when we no longer have to pay for these items.

Prop 3 provides only enough funding to allow the district to address ongoing annual needs to the tune of $26-27 million. It will do so without borrowing funds and incurring interest. We are simply reallocating tax dollars we are already receiving. This is the most fiscally responsible way to fund these ongoing needs.

School districts cannot receive a “windfall” when assessed values go up. Missouri school districts are limited to revenue growth by the Consumer Price Index (CPI) or 5% (whichever is lower), commonly referred to as the Hancock Amendment. In fact, at the Tax Rate Hearing in Sept., the Rockwood School Board LOWERED the district’s overall tax rate this year by $0.25 to $3.8907 to offset rising property values, as required by Missouri’s Hancock Amendment. This is the lowest Rockwood's overall tax rate has been since 1990, and it is one of the lowest overall school district rates in St. Louis County.

Rockwood received a total of $11.4 million one-time funds approved through federal legislation to provide financial assistance during the COVID-19 pandemic to spend over the course of three school years. The funds were allocated and most of the allocated funds have been spent. We expect to spend our entire allocation of ESSER III funds by September 30, 2024.

Here is a comparison from last year (2022) that shows the expenditure per student in Rockwood compared to other St. Louis County school districts. Given that the latest district rankings by Niche.com show that Rockwood is the fifth best performing district in Missouri and that we have one of the lowest per pupil expenditures, that demonstrates that Rockwood taxpayers are getting a lot of bang for their buck.

Other points of pride that demonstrate the level of education our students are receiving include that Rockwood has 34 Rockwood students representing all four district high schools who have been named semifinalists for the National Merit Scholarship Program. With 23 semifinalists, Marquette has the highest number of any school in the state of Missouri, public or private. Overall, Rockwood contributed nearly 12 percent of the 292 National Merit Scholarship semifinalists from Missouri this year. Also, the Rockwood Class of 2023 had 279 students who scored 30 or higher on the ACT and 68% of students in the Class of 2023 earned at least one college credit during their high school career.

Registered Missourians who expect to be prevented from going to their polling place on Election Day may vote absentee beginning six weeks prior to an election. Options include voting by mail or in person. For additional details about absentee voting, visit the St. Louis County Board of Elections website or the Jefferson County Board of Elections website.