The Madison Consolidated Schools trustees plan to adopt Wednesday night a budget containing $37,647,093 in appropriations for the 2020 school year.

That budget is built on raising the rate for school taxes 77 percent, but the actual number will be much lower, says Bonnie Hensler, director of finance and human resources for the district.

The new budget has a $1.47 tax rate. But that rate is inflated significantly this year to account for future bond payments because of Madison’s ongoing facilities improvement project, Hensler said. Because it isn’t clear what the district will be paying on those bonds yet, Hensler said, the goal is to aim high to account for reductions the state will make to the budget later, as it historically has done.

School districts and public bodies in Indiana submit their adopted budgets to the state Department of Local Government Finance (DLGF), which looks at the submitted budgets, and in almost every instance, makes reductions. The actual budget and tax rates after state evaluation are what apply each budget year, Hensler said. The district likely won’t know the actual amounts until January or February 2020, she said.

The actual rate most likely will be less than a dollar, she said.

The impact on taxpayers is dependent on the value of their property because the state in 2009 began requiring residents pay no more than 1 percent of their assessed homestead property value in property taxes, according to the DGLF. That means the owner of a $200,000 house would pay no more than $2,000 in property taxes on their home, even with a $1.47 rate. A 2 percent cap applies to other residential and agricultural land and a 3 percent rate or cap applies to other real and personal property. The cap applies not only to the school tax, but also to all city and county property tax rates.

There will be a public hearing on the bonds and the facilities improvement project before the school board’s meeting Wednesday at 6 p.m.