Francis Howell Board Discusses Tax Rate Increase

Declining revenue from the government and property taxes has the Francis Howell School District searching for more money to cover expenses. The answer may be a tax increase.

The Board of Education will vote on the tax rate for the next year at the Sept. 15, 2011 meeting. The district has had increased expenditures every year but fairly steady revenues. The results, according to projections, are significant losses in fiscal year 2015 and 2016 totaling more than $28 million.

The district has a surplus this year of $2.4 million, due to extensive budget cuts.

"We are in a positive territory because we made significant cuts to our expenditure," District Chief Financial Officer Kevin Supple said. "It's not because we're getting new revenues."

Revenue from property taxes is expected to decline. Assessed valuation of property was $1.975 million on Dec. 31, 2010. Since then, property values have tumbled. The current value is $1.905 million—a loss of nearly $70 million.

Board Director Mark Lafata said the Board shouldn't ask tax payers for more money this year. 

"From where I sit, this is a money hungry board," he said.

Lafata suggested that instead of a revenue neutral tax rate, the district should instead look into a budget-neutral tax rate. His idea would have the taxes equal the budget, instead of the revenue, so the District wouldn't gain or lose money. 

Supple said in the long term look, the district would be giving up money it could need later. Plus, current laws said that if the district voluntarily rolled back taxes this year, it can't roll it forward the next when it will need more money. 

"I agree with Mr. Lafata if we knew this district was going out of business in 2012," Board President Mike Sommer said. "It's very shortsighted to just look at this school year."

Supple's full report to the board can be found here. The board will vote on the tax rate at the Sept. 15 meeting.