| Wednesday,
March 26, 2008 Dear Editor: On Tuesday, April 8, the Mountain Home school district will ask voters to approve or reject a 6.87 mill tax levy to fund $41.1 million in new debt. This 30-year bond issue will finance $34,255,599 in construction costs, plus $6,799,301 in financing costs and other fees. The Baxter County Friends of the Taxpayers urge every eligible voter to investigate all the information presented – on both sides of the issue – before going to the polls. Our motto is “Finding the Facts” – and after months of research and analysis, these are some of the facts we found: Fact: Schools across the state have reported major errors in their districts’ Facility Condition and Educational Suitability reports, which were prepared in 2004 by a state-agency-directed task force. Errors include things like a brand-new school that needs nearly $500,000 in repairs (Charleston); a wooden floor in a field house that needs replacing (the floor is concrete) (Green Forest); a $50 back-flow prevention valve that “costs” $4889 (Springdale); $60 dimmer switches that “cost” $399 each, plus inaccurate accounting of square footage (Brookland); and more. Fact: The proposed construction plan is more ambitious than necessary to meet standards. Our research shows that the district has enough overall gross square footage to meet mandates for several years. The problem lies in how it is allocated. Yes, some components of our schools are smaller than the new state guidelines. However, the AR School Facility Manual plainly states: “These standards and guidelines … establish a uniform level of quality in new educational facilities and substantial renovations to existing buildings” (emphasis added). The manual also says that existing facilities in good condition can be kept, even if they don’t meet the new space standards, “with application of the new space standards where practical.” Fact: The Mountain Home school district is one of the wealthiest districts in the state. Currently we rank 13th out of 245 districts in the state. But that wealth is not evenly distributed. District-wide, 47% of our students are classified as “low income,” and qualify for free or reduced-price lunches. In addition, there are many low- and middle-income residents without children who would find even a small increase in their property taxes to be a burden. Fact: Everyone in the district will be affected if the millage rate increase is approved, not just homeowners. Owners of rental property and businesses will see their taxes go up as well, and pass the increase on to their tenants/customers. Homeowners over the age of 65 may have their assessed values frozen, but any millage increase will mean an increase in taxes. And regardless of age, personal property will also be taxed at the higher rate. Fact: Based on the district’s 2006 assessed value ($467 million), the proposed 6.87 mills will generate a minimum of $3.1 million in tax revenue each year for the next 30 years. (If the assessed value goes up, the revenue goes up as well.) The annual payments (which stay the same every year) are $2.7 million. That is a minimum excess tax of at least $380,206 per year for 30 years. Fact: A 0% per year change in assessed values over 30 years will generate at least $11.4 million in excess tax revenue. Over the past several years, the district has experienced an average annual increase in property values of about 4%. A modest annual increase of only 2% over 30 years will generate more than $52 million in overages. Taxpayers have no control over how this “extra” money gets spent. Historically, the School Board has not used excess tax revenue to reduce long-term debt, but instead uses it (legally) to cover any shortfall in the maintenance & operations budget. Fact: BCFT has asked the school board to dedicate a large part of the overage every fiscal year to paying down the debt, but they have so far refused to make a public commitment to do so. Fact: Early voting runs Tuesday, April 1st, through Monday, April 7th from 8am-4:30pm at the courthouse. Polls will be open on Election Day from 7:30am–7:30pm. Whatever your position, please get out and vote! For more information about this issue, visit the BCFT website, www.bcfriendsofthetaxpayers.org, or call 424-6235. Sincerely, Frank
& Suzan Kaye |