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Questions About the Tax Levy

Questions About the Tax Levy. Mark O. Stern Community Unit School District 200 Public Hearing November 8, 2006. District 200 is proposing a 15.51% increase in its tax levy. Property tax levies may seem confusing – what does this really mean to you?.

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Questions About the Tax Levy

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  1. Questions About the Tax Levy Mark O. Stern Community Unit School District 200 Public Hearing November 8, 2006 How Much is Enough?

  2. District 200 is proposing a 15.51% increase in its tax levy. • Property tax levies may seem confusing – what does this really mean to you? How Much is Enough?

  3. District 200 is proposing a 15.51% increase in its tax levy. • What is the real impact of tax caps? • Does the tax levy bear any relationship to the District’s actual revenue needs? How Much is Enough?

  4. Tax caps limit what the District can actually collect. • Before tax caps, a fixed tax rate was applied to property values. • As property values skyrocketed – often by double digits – so did your tax bill. • Without tax caps, in the last 5 years alone, your bill would have increased 36% - even though inflation was only 9.5%. How Much is Enough?

  5. Tax caps have allowed District revenue to grow faster than inflation. • Tax caps look not at the tax rate, but at the amount of tax collected. • In the last 5 years, tax caps have allowed the District to increase taxes at the inflation rate PLUS about 1.2% each year. • Tax collections are up about 15% versus inflation of 9.5% - more than 50% above the inflation rate. How Much is Enough?

  6. “Let us catch up.” • Even though tax revenues have grown 50% faster than inflation, some say that’s not enough. • Some administrators and Board members say “we aren’t allowed to tax at the ‘voter approved rate.’” • They say, “just give us one year to ‘catch up’ at the pre-cap tax rate.” • What would this mean for taxpayers? How Much is Enough?

  7. Tax Caps2001-2005 • Yellow Line: Rate of Inflation • Pink Line: Increase in actual taxes (faster than inflation) • Blue Line: Increase in your taxes without tax caps, if the Board levied at the “voter approved rate” How Much is Enough?

  8. $90 Million More Taxes in just 5 years? • District 200’s “maximum” tax rate is 4.611 (excluding bonds). • If this rate had been applied, without tax caps, for the last 5 years, taxpayers would have paid over $90 MILLION in additional taxes due to higher property value. • A one year “catch up” would mean your total 2005 property tax bill would have been over 17% higher! How Much is Enough?

  9. So, does the District really need a 15.51% increase? • I can’t answer this question. How Much is Enough?

  10. So, does the District really need a 15.51% increase? • The District does not really tell us how much money it needs. • Instead, it raises taxes to the maximum so it does not “leave money on the table.” • This does not give residents a clear picture of school finances. How Much is Enough?

  11. Would the Board have collected all that money? • We don’t know if the Board would have taxed us an extra $90 million. • The Board budgets based on “collecting every possible tax dollar” instead of based on need. • This is not a financial strategy – it focuses on what the Board CAN do instead of what it OUGHT to do. How Much is Enough?

  12. Let’s be realistic. • If the Board thinks its spending needs far exceed tax revenue –every year – tell the community how much and why. How Much is Enough?

  13. Let’s be realistic. • Before entering into major obligations – like a teacher contract – tell us what they’ll cost, and have a plan in place to pay for them. How Much is Enough?

  14. Thank you for your time. • I’m Mark O. Stern and I approved this message. • Find out more at www.markostern.com • I used data available on District web site (tax levy presentation). How Much is Enough?

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