Question: Would appreciate knowing what the TPPT amount was for the last year that Milford received the full amount from the state before it was phased out. Has any of the CAT tax that replaced the TPPT come back to the district and if so, in what amount?
Answer: The last year the district received the full amount of Tangible Personal Property Tax was fiscal year 2011, $2,701,000. In fiscal year 2012, we received the reduced (phasing out) share of $1,578,000 and this fiscal year we are anticipating receipt of $454,000. By fiscal year 2014, there will be no TPPT for the district.
The district does not currently receive Commercial Activity Tax (CAT).
The $4,449,000 in lost revenue was taken from the Actual 2011 receipts compared to the Estimated 2014 receipts on the five year forecast. This is a tool used to help the district see what changes in funding are ahead and how to plan appropriately. Of that $4.5 million, the two largest areas where funding has or will end are budget stabilization ($1,337,000 received in fiscal year 2011) and TPPT ($2,701,000 received in 2011). By 2014 neither of those revenue streams will exist. The remaining $411,000 is a collection of smaller items. The levy on the ballot will generate $3.9 million to cover the losses in state funding. The district works diligently to raise local revenue to cover the costs of the smaller fluctuating items.
The district knew the budget stabilization was for two years and anticipated necessary cuts with a fiscal year 2012 Reduction Plan. When the state chose to implement the TPPT phase out earlier than districts were originally informed and shortened the phase out to three years opposed to seven, the district knew deficit spending would begin sooner and hit harder.