[Speed Gibson,
Thursday January 31, 2008 at 8:36pm]
Property Tax Reform for Dummies
And I'm the dummy. I must be. My proposal below must somehow be fatally flawed, but I cannot imagine why. I also have to think others must have thought of this. It's like the FAIR tax, which also makes a lot of sense but will never happen.
I speak of property taxes for the public schools. I propose that the portion of public school money raised from property taxes be spent on property, not salaries. Looking at District 281, these amounts seem about in balance, so it's not a huge immediate change. But it should make increases smaller and more credible. As such, I would grant the School Boards the power to set operating levies without referendums, just like the city. Bond issues would still need voter approval. The rest of the money, for salaries and benefits, would come from the State.
By property I mean buildings, books, desks, computers, chairs, football fields, and so on, just no payroll. You can buy services like snow plowing with property tax money, but not hire your own people. Property taxes can buy school buses and gas, but not the drivers' pay and benefits.
Actually, it does get a little sticky for those who contract their bus service, which would be fully fundable from property taxes since there is no direct payroll. I'm sure it sounds like union-busting, but any attempt to pro-rate defeats the simplicity. Besides, the union can organize the contractor's employees as well and the school district can limit the bidding to union shops if desired.
The overall idea to not have the payroll so dependent on the district's property wealth as today. That is the intent of the current system, but it obviously doesn't work if the districts always can un-level the field by raising property taxes, much of which businesses pay.
So, where did I go wrong?
I speak of property taxes for the public schools. I propose that the portion of public school money raised from property taxes be spent on property, not salaries. Looking at District 281, these amounts seem about in balance, so it's not a huge immediate change. But it should make increases smaller and more credible. As such, I would grant the School Boards the power to set operating levies without referendums, just like the city. Bond issues would still need voter approval. The rest of the money, for salaries and benefits, would come from the State.
By property I mean buildings, books, desks, computers, chairs, football fields, and so on, just no payroll. You can buy services like snow plowing with property tax money, but not hire your own people. Property taxes can buy school buses and gas, but not the drivers' pay and benefits.
Actually, it does get a little sticky for those who contract their bus service, which would be fully fundable from property taxes since there is no direct payroll. I'm sure it sounds like union-busting, but any attempt to pro-rate defeats the simplicity. Besides, the union can organize the contractor's employees as well and the school district can limit the bidding to union shops if desired.
The overall idea to not have the payroll so dependent on the district's property wealth as today. That is the intent of the current system, but it obviously doesn't work if the districts always can un-level the field by raising property taxes, much of which businesses pay.
So, where did I go wrong?