Treasurer: 5.25 Mill Levy would offset deficit

Treasurer: 5.25-mill levy would offset deficit

District officials are leaning toward a property-tax levy for the May 2 ballot.

Worthington City Schools will need to put an operating levy request of at least 5.25 mills on the May ballot to offset an expected deficit of $22.9 million, district officials say.

Treasurer Jonathan Boyd said Tuesday that he will discuss that millage amount and the levy options available to the board at a public levy workshop at 6 p.m. Monday at Thomas Worthington High School, 300 W. Dublin-Granville Road.

The regular board meeting will begin at 7:30 p.m. Monday, also at Thomas Worthington, Boyd said.

"We will need at least that millage amount to avoid a deficit of almost $23 million by 2009," Boyd said.

Boyd said he is convinced the best move for the district would be another property tax, not an income tax.

"If we go with an income tax, we'll lose a million dollars in tangible taxes in a two-year period, because businesses don't pay an income tax," Boyd said. "Right now, we have many businesses paying a real-estate tax, but without that tax revenue, we would have to ask for a high income tax to make up for what the businesses wouldn't pay."

Boyd said he doesn't think "cost-shifting" the tax burden to residents and leaving businesses out would be in the best interest of the district.

"We did some checking on this issue two or three years ago, and we found out we would have to nearly double the tax burden on residents to go with an income tax instead of a property tax," Boyd said. "You can't do a property tax on businesses and an income tax on residents; you have to choose. In an income tax, senior citizens are not unduly harmed, but if we have to double the rate of taxation, it could be a severe burden on residents."

Residents approved a 6.85-mill continuing operating levy request in March 2004, which district officials said was designed to generate enough operating funds to last two years.

Boyd said he will present the newest five-year financial forecast at the levy workshop, and that forecast also should be available on the district Web site today, at www.worthington.k12.oh.us/index.html.

"Board members would like continued input from the community about the district's financial needs and we want to keep finding ways to enlighten and educate residents on the changing circumstances of school finances and funding," Boyd said.

Boyd said he thinks it also may be a good move to combine a permanent-improvement levy with the operating levy request.

"If we can keep the millage low enough for the operating levy request, then we could address our permanent-improvement needs," Boyd said.

An operating levy pays for day-to-day school expenses such as teacher salaries. A permanent-improvement levy must be used for long-lasting purchases such as textbooks, computers and buses.

Boyd said the board will have to pass two resolutions -- a resolution of necessity and a resolution to proceed -- within 48 hours of each other.

"The resolution to proceed will have to be filed with the Franklin County Board of Elections by 4 p.m. Feb. 16 if we want to place a tax issue on the May 2 ballot," he said.

Superintendent Melissa Conrath said she hopes community members will show up in force to learn about the levy options.

"There are a number of options available to the school district, including a general operating levy request, and a permanent-improvement levy is certainly an option," Conrath said.

She said many districts are facing the same financial challenges.

"Worthington Schools is truly an excellent district and has a community that has demonstrated support in the past and I am very committed to soliciting input from residents to help us make better decisions on these issues," Conrath said. "I encourage anyone who has any thoughts, reactions or input to join us Monday evening."

Board President Gary Tyack said board members have less time to decide on the levy request than he would prefer.

"We are on a much shorter schedule than I would personally prefer, but I would also hate to get our tax issue caught on the November ballot with another ballot issue that is expected to seriously limit what government can do," Tyack said. "But getting on the ballot in May doesn't give us a lot of time to get information to the public.

"We want to hear what people are thinking about these tax issues, how much they would support and what kind, and even if people don't think we should be asking for a tax increase at all," Tyack said.

Board Vice President Bob Horton said he hopes to open a dialogue between the district and residents.

"We need to discuss what will happen with our finances in the next two years," Horton said. "We hope people will step forward and give us their opinions. Maybe they would prefer a one-year levy, or a higher three-year levy to get it done with.

"I also think this district needs to look seriously at a permanent-improvement levy because we need the dollars to keep repairs on buildings up to date, so we won't need to ask voters for a multimillion dollar bond issue in the future," Horton said.