Schare: Rely on residents to determine acceptable taxes

 

In light of the district's hope to pass an operating levy in May 2009, one Worthington school board member hopes to initiate a series of meetings to determine what percentage of income Worthington residents consider "sustainable and affordable" where school taxes are concerned.

Marc Schare said he wants to engage the community in "town hall meetings" to encourage small group discussions on "how much, how often and for what?" as early as October or November, instead of a typical levy campaign.

"We tend to run our levy campaigns as an exercise in justification," he said. "I would argue that in addition to a justification component, sustainability and affordability are equally important.

"Regardless of the value that Worthington residents place on the school district, there is only so much money to go around," Schare said. "If I want to buy a Lexus and can't afford a Lexus, I can have 100 justifications for why I need a Lexus. I can agree that a Lexus is a top-of-the-line car and I still won't be able to have one."

Schare said before a school district's typical levy campaign, "the levy amount is calculated based on the five-year forecast and what amount is required that year to balance the books.

"Whatever levy number will get you that amount is the amount you put on the ballot," he said. "The levy campaign itself is generally an exercise in justification."

District Treasurer Jeff McCuen said last month the levy amount needed in 2009 could range from 6.4 mills to 7.9 mills, based on the latest five-year financial forecast and amounts the district would need to fund new programs in the elementary renewal plan, such as the IB Primary Years program proposed for Slate Hill Elementary School.

Schare said the district should consider current economic factors.

"The point I want to make is that there is a different component now," he said. "With the economy going the way it is going, and data which shows Worthington residents' real income has declined between 2000 and 2005, if Worthington is going to keep passing levies, we need to come up with a levy cycle that is sustainable and affordable over time."

Schare said he researched statistics to compare school district expenditure increases to taxpayer income increases.

"For the period from 2000-05, school district expenditures increased 11 percent while our enrollment dropped around 8 percent," he said. "According to the Ohio Department of Taxation, Worthington's income over the same period increased only 4 percent, so it is fair to say that even this modest level of spending increase was double the income increase for Worthington residents."

The district's most recent five-year financial forecast showed a spending increase in the range of 5 percent to 6 percent annually over five years, Schare said.

"I think it would be wildly optimistic, given the current economy, to say that Worthington incomes will increase by 5 to 6 percent per year," he said. "So the question becomes, do we need to try to limit school district spending to something approaching the income levels of our constituents or do we accept that Worthington residents will have to pay a higher percentage of their income to the school district, either in increased property taxes or an income tax?"

Schare said among Central Ohio communities, Worthington residents already pay the third-highest property tax as a percentage of income -- 2.53 percent -- surpassed only by Upper Arlington at 2.63 percent and Hilliard at 2.58 percent, according to the Ohio Department of Taxation.

The community engagement process would include discussing what levy amounts might be needed in future years, Schare said.

"Besides talking about what we'll need in May, we need to calculate the levy amount we might need in 2012, to the extent that is possible," Schare said. "State funding could still be in flux in May. The governor said he will roll out a school funding reform plan early in 2009, so there is a chance we're not going to know what our state funding will look like -- which is a scary place to be when you have an issue on the ballot."

Schare said a change in the state's school funding formula "is most likely to be negative for Worthington.

"Any real chance for programmatic improvement will be dependent on the state leaving us and our funding alone," he said. "But if the government would decide instead of $18 million a year, we would get $25 million, we should not treat that as a windfall, but should lower the next levy amount by that number."

Schare said multiple town hall-style events could lay out the facts surrounding the school district revenue and expenses and "try to get at the heart of the question of what is sustainable and affordable.

"What I'm hoping to do is unify our positions," he said. "We've had some difficult times in the past and a lot of division in the community over school taxes. If there is an acceptable rate of increase, we want to find out what that is."

"We've had some difficult times in the past and a lot of division in the community over school taxes. If there is an acceptable rate of increase, we want to find out what that is."

--Marc Schare