DAYTON — A increase of state subsidy to the Dayton School Department has equated to a reduction in the local property tax rate.

The Dayton School Department, like several other school departments in the area, received more subsidy from the state than initially expected. 

The School Department was informed after the 2018 fiscal year budget was finalized it would receive about $72,400 more than anticipated. 

According to state law, school departments that received more state subsidy than factored into a finalized local budget are mandated to use at least half of the surplus of funds to offset local taxes. The remaining half can be used toward school programs.

School Board Chairman Denis Elie wrote in a letter to citizens that the town would be using the entire surplus of $72,400 to offset taxes.

The extra state subsidy has decreased the town’s property tax rate by 34 cents per $1,000 of assessed property value.

The mil rate in Dayton is $15.75; without the increase in subsidy be used to offset taxes it would have been $16.09, according to Tax Assessor Alex Konczal.

“As you have most undoubtedly noticed, there has been a large reduction in the mil rate,” wrote Elie. “This was accomplished by working hand-in-hand with the town selectmen, budget committee, and administration to properly manage and plan how to maximize the local, state, and federal dollars we receive.”

Elie wrote the school board was confident enough with its initial budget that additional money was not necessary.

“Therefore, the entire subsidy was utilized to demonstrate our fiscal responsibility to the taxpayers of Dayton through lowering the mil rate,” wrote Elie.

— Staff Writer Liz Gotthelf can be contacted at 282-1535, ext. 325 or egotthelf@journaltribune.com.