[Vision2020] School Levy Issues

Sat Nov 10 12:46:22 PST 2007

Hi Tom,

I was going to let this go, but after I thought about it, it is 
important that our community understand exactly what our fiscal 
situation is regarding the UI.  We are in some trouble and we need to 
recognize it, evaluate it and deal with it.

First, let me correct some of your stats.

Figures below are direct quotes from the audited financial statements 
for UI and UW for the years ended June 30, 2005 and 2006.  If you 
need validation, let me know and I can provide you with the links,.

The numbers below provide total revenues for Federal Grants and 
Contracts, State Grants and Contracts and Private Grants and Contracts.

UI                                              2005            2006

Federal Grants and Contracts                    60,156,155      57,955,693
State Grants and Contracts                      11,259,208      11,406,131
Private or Non Governmental G & A               11,725,677      11,233,477

University of Washington

Federal Grants and Contracts                    813,643,000     835,901,000
State Grants and Contracts                      47,807,000      46,976,000
Private  or Non Governmental G & A              92,737,000      106,558,000

In other words, UI is now down to about $80,000,000 in grants and 
contracts; The University of Washington is just shy of one billion 
dollars.  The UW Medical Complex generates additional resources (as 
an auxiliary enterprise) of about one billion.  Oh, and the UW is in 
the middle of its 1.5 billion dollar fund raising campaign.  Of 
additional concern is the drop in private grants and contracts.  In 
2004, UI reported $13,914,957 in private grants and contracts.  That 
represents a 20% decrease in that category from 2004 to 2006.

To put this in perspective, The University of Washington has about 
40,000 students at all levels.  For the Fall, 2007, The UI has 
dropped to an FTE count of 10,078.  More troubling is the fact that 
over the past four years, Boise State has increased 5.39% to 14,230 
FTE's , LCSC has increased to an FTE count of 2,607 and a four year 
growth of 4.2%, while the UI has dropped 8.99%.  These numbers do not 
square with your claim that the UI student population is directly 
correlated to the economy.

Please be careful about the use of the increased homeowners exemption 
as a signal of decreasing property taxes.  The only advantage to 
someone exercising their homeowners' exemption comes from someone 
else not taking their homeowners exemption.  Otherwise, it produces 
no lowering of taxes.  For everyone that pays property taxes, the 
homeowners exemptions taken increase the need to raise tax levy rate 
which is then born by all taxpayers.  But, much of that tax burden is 
then picked up by business (not entitled to exemption), which must 
then raise prices and hence passes that increased tax back to 
consumers.  We gain some when business is able to pass that price 
increase on to customers outside the state.  That is one of the 
reasons why it is so important to produce goods and services for export.

If you want to explore some additional elements about UI, please read 
the Schedule of Findings and Questioned Costs in the June 30, 2006 
financial report.

I hope this information is useful to you.

At 11:49 PM 11/9/2007, you wrote:
>As for the high paying jobs at the UI, I don't think the 
>Administration has been cut, nor any Dean positions been 
>consolidated.  Revenue?  What constitutes revenue? tuition? grant 
>money?  medical funding excluded, the UI does just as well in the 
>grant department as UW- not bad for a school the size of the UI. The 
>size of the student population varies from year to year.  You make 
>it sound like the UI is dwindling -NOT SO.  It is down one tenth of 
>one percent this year.  However, the quality of student has actually 
>increased -based on entrance scores, HS GPA, etc.  It is a fact that 
>the UI student population is directly correlated to the 
>economy.  When the economy is good, the population is down.  When 
>the economy is bad, the population goes up.
>
>Lastly, the property taxes have gone down in the last couple of 
>years. Thanks to a higher homeowner exemption and the state taking 
>over the M&O of schools through the 1 cent sales tax increase.  If 
>this levy does pass, my property taxes still won't be as high as 
>they were.  Was thre Hamilton money spent like I would have wanted 
>it to be?  It wasn't my money but a plan would have been nice to 
>stick to.  However, my I and my family still use it willingly. What 
>about the swimming pool bond? I didn't get the same pool that I felt 
>I voted for.  I still pay for it and I and my family still use it willingly.
>
>Donovan Arnold <donovanjarnold2005 at yahoo.com> wrote:
>First of all, I want to disclose that I don't vote anymore, so my 
>opinion matters little beyond this forum, however, I want to point 
>out some concerns I have about the levy.
>
>1) Can Moscow afford such a huge tax increase when you consider the 
>already huge amount of taxes the state has been levying against its 
>people? Can if afford a tax increase when it has lost lots of high 
>paying jobs at UI and LHS? Can if afford a tax increase when UI has 
>lost revenue and students that support the community? Can if afford 
>a tax increase as the nation heads into a possible deep recession, 
>climbing gas prices, and rising college education costs that will 
>further reduce student attendance? According to the Idaho Department 
>of Labor, there are only about 30 job listing in the city that pay 
>over $10 an hour that are full time. Is that enough to keep Moscow's 
>economy humming?
>
>2) Are we sure that the $2,000,000 dollars that will be going to MSD 
>will be spent properly and on things that will best benefit student 
>achievement and success? Is MSD going to spend it wisely?
>
>3) Finally, I ask, is MSD going to include all students in its 
>education program, including those Vocational students, or just pour 
>more money into academia and college bound students?
>
>4) Can you afford a 20% tax increase?
>
>If the answer to any of these is no, then I believe that is the way 
>people should cast their ballot if they vote. If the answer to the 
>question is yes, then that is they way they should vote.
>
>Best,
>
>Donovan
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>Tom & Liz Ivie
>
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