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Hi Tom, <br><br>
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.<br><br>
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.<br><br>
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.<br><br>
At 01:28 PM 11/10/2007, you wrote:<br>
<blockquote type=cite class=cite cite="">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. <br><br>
<b><i>Jeff Harkins <jeffh@moscow.com></i></b> wrote: <br>
<dl>
<dd>Hi Tom, <br><br>
<dd>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.<br>
<br>
<dd>First, let me correct some of your stats.<br><br>
<dd>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,.<br><br>
<dd>The numbers below provide total revenues for Federal Grants and
Contracts, State Grants and Contracts and Private Grants and
Contracts.<br><br>
<dd>UI<x-tab> </x-tab><x-tab>
</x-tab><x-tab>
</x-tab><x-tab>
</x-tab><x-tab>
</x-tab><x-tab>
</x-tab>2005<x-tab>
</x-tab><x-tab>
</x-tab>2006<br><br>
<dd>Federal Grants and
Contracts<x-tab> </x-tab><x-tab>
</x-tab><x-tab>
</x-tab>60,156,155<x-tab>
</x-tab>57,955,693<br>
<dd>State Grants and
Contracts<x-tab> </x-tab><x-tab>
</x-tab><x-tab>
</x-tab>11,259,208<x-tab>
</x-tab>11,406,131<br>
<dd>Private or Non Governmental G &
A<x-tab> </x-tab><x-tab>
</x-tab>11,725,677<x-tab>
</x-tab>11,233,477<br><br>
<dd>University of Washington<br><br>
<dd>Federal Grants and
Contracts<x-tab> </x-tab><x-tab>
</x-tab><x-tab>
</x-tab>813,643,000<x-tab>
</x-tab>835,901,000<br>
<dd>State Grants and
Contracts<x-tab> </x-tab><x-tab>
</x-tab><x-tab>
</x-tab>47,807,000<x-tab>
</x-tab>46,976,000<br>
<dd>Private or Non Governmental G &
A<x-tab> </x-tab><x-tab>
</x-tab>92,737,000<x-tab>
</x-tab>106,558,000<br><br>
<dd>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.<br><br>
<dd>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.<br><br>
<dd>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.<br><br>
<dd>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.<br><br>
<dd>I hope this information is useful to you.<br><br>
<br>
<dd>At 11:49 PM 11/9/2007, you wrote:<br>
<blockquote type=cite class=cite cite="">
<dd>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. <br>
<dd> <br>
<dd>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. <br><br>
<dd>Donovan Arnold <donovanjarnold2005@yahoo.com></i></b> wrote:
<dl>
<dd>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. <br>
<dd>
<dd>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? <br>
<dd>
<dd>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?<br>
<dd>
<dd>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? <br>
<dd>
<dd>4) Can you afford a 20% tax increase?<br>
<dd>
<dd>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. <br><br>
<dd>
<dd>Best,<br>
<dd>
<dd>Donovan
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