What is the downside to becoming a Basic Aid district?
The downside is that property taxes don’t always go up, so a Basic Aid district might see its revenues flatten out or drop while its neighbors are getting Cost of Living increases from the state. And, unlike their Revenue Limit counterparts, there are no safeguards in place to limit the potential drop from one year to the next, so it’s critical to operate with higher reserves. In addition, long-term forecasts are unreliable for Basic Aid districts, which by definition don’t receive any additional unrestricted funding when enrollment increases.
