Tuesday, 10 June 2008
IN OUR VIEW: Is tax hike justified? Print E-mail
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Homeowners in the Provo City School District are facing a hike in tax rates, and in light of rising gasoline and natural gas prices, people have cause to worry. The district's 2008-2009 budget deserves close scrutiny.

The Provo Board of Education is expected to vote today on a budget for the 2008-09 school year. It includes a tax increase that, according to current estimates, would raise taxes 23.8 percent -- $168 a year for someone owning a $250,000 house.

How that affects each individual's actual tax bill varies, of course. Owners of more expensive homes will feel a bigger pinch. Rising home value assessments only add to the jolt.

The preliminary tax rate might change when Utah County releases its assessment figures later this month. Nevertheless, it's a bad time to be increasing the price of anything. The average Utahn is paying about $200 each month more to fill a gas tank, for example. The economy is making plenty of people nervous.

And it's fair to ask whether school tax hikes are avoidable. Perhaps the public schools need to manage on declining resources, like the rest of us.

Some in Utah Valley seem able to get along. Nebo School District, for example, is not planning any increases this year. The Alpine School District is scheduled to release more information later this week, with its board scheduled to adopt a budget June 17.

So what do school districts look at in setting tax rates? In some cases, the voters. In the Provo district, much of the increase is the result of measures approved at the polls in 2006 that will add an estimated 14.7 percent ($94) to that typical homeowner's tax bill. This includes bond debt and a measure giving the board leeway to raise taxes. Most of this "voted leeway" will go to salaries.

Two "new" factors would account for $74 in increased taxes, or 9.1 percent of the typical 2008-2009 tax bill. One the district has no control over. The state Legislature mandated this year that districts pay more for charter schools. These are popular programs -- more than 900 students attend charter schools in the Provo district. At $9 a year for the typical homeowner, such an expense seems manageable.

The second factor is the district's planned $2.5 million funding for capital projects -- construction and maintenance, and seismic improvements. The funding is part of a 20-year plan for likely construction projects.

School officials say this will allow the district to plan and complete projects in a more timely manner rather than in what some say is a "stop and start" pattern as school bonds are passed, money spent, and new bonds sought. The 20-year timetable arguably yields less financial shock than the 10-year plan once contemplated. Taking reasonable steps to make schools safer from earthquakes seems valid. And it could be said that planning for construction and maintenance is simply facing up to reality.

Yet families that are looking nervously at their own finances might well ask, "Why not cuts?" Provo officials say their budget is lean as it is. Besides, surveys show that people want to hand teachers more money. So now it's simply time to ante up. Provo district officials point to surveys that show residents put issues related to better teacher compensation as Nos. 1, 2 and 3 as their top priorities.

The Provo school board meets at 7 p.m. Tuesday at the district office, 280 W. 940 North, Provo, to vote on the proposed budget. In about two weeks, the county will provide the district with its updated property assessment figures, which will be used to calculate the final tax rate. That could change the picture. Fortunately, there will also be a "Truth in Taxation" hearing for Aug. 12, during which the public can comment on the budget and the accompanying tax rate increase. The board could also amend the budget at that time.

With the dramatic rise in fuel costs and the local and national economies teetering, is a bigger tax bill what you want right now? You need to make your voice heard.

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joeschmoe Jun 10 2008 07:59:07
This thread discusses the Content article: IN OUR VIEW: Is tax hike justified?

Provo already has slaughtered its teaching force the last few years.

They took away much of the promised retirement for any teacher with less than 20 years in the profession.

They have balanced their budget on the backs' of the teachers for about 7 years now (last year excluded ).

This is a small increase that is very much needed.

Nebo and Alpine are growing districts. They get a good amount of funding from the state because of that.

Provo isn't. Ask the superintendent about it and he'll give you some relatively good information.

Tax hike justified? Yes. Double or triple this amount would be even more justifiable.

I'll gladly pay more taxes if it will end up in the teacher's pocket and not for some crazy project or dual immersion mess.
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