[Vision2020] [offlist] School Levy Issues

Jeff Harkins jeffh at moscow.com
Sat Nov 10 16:00:43 PST 2007


Hi Tom,

It is easy to get confused about the homeowners exemption.  First, 
each year there are a few souls who don't know the rules and fail to 
register their home for the exemption.

But to get to the heart of things, let's assume that every one 
eligible files for their homeowners exemption - so every one gets the 
appropriate exemption.  Independent of that, a governmental unit set 
its budgeted expenditures and then seeks to determine the levy rate 
that will be necessary to create enough revenues to cover the 
budgeted expenditures.  Because all homeowners have the exemption, 
the governmental unit must set the levy rate higher to compensate for 
the exempted property values.  Then, of course, the business rate 
gets no exemption and consequently have to pay a proportionally 
higher rate (all their property is taxed  - no exemption) - which is 
then passed on to customers.

The only way for your taxes to go down is for the governmental unit 
to reduce its expenditures.  Hopefully, that helps to explain the situation.

At 01:28 PM 11/10/2007, you wrote:
>Not to argue, but so I can better understand, it sounds to me like a 
>UI leadership problem.  The only jobs I ever head of being cut were 
>mostly low paying ones in facilities and auxillary 
>services.  Meanwhile the appearance has been that administrative 
>jobs have increased in pay and at a much more disproportionate rate 
>than non-administrative jobs.  I'm not sure I follow your statement, 
>"The only advantage to someone exercising their homeowners' 
>exemption comes from someone else not taking their homeowners 
>exemption." Why wouldn't anyone want to exercise their homeowners' 
>exemption?  I realize the tax rate is the same either way although I 
>didn't think to express that earlier.  Even then, with the increase 
>in the homeowners' exemption my taxes will still be less than they 
>were before.  I'm ok with that.
>
>Jeff Harkins <jeffh at moscow.com> wrote:
>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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>
>
>
>
>Tom & Liz Ivie
>
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