State Question 801, if approved by voters, will give schools the right to use "Building Funds" for operational expenses such as teacher salaries. Schools currently receive 5 mils of assessed local property value for the purpose of building acquisition, maintenance, and upkeep. Schools cannot use building funds for anything else, such as teacher salaries and student instructional needs. Also, schools' General Fund monies are equalized through the state funding formula, so all schools operate with roughly the same amounts. Teacher salaries and student needs are paid from a school's General Fund, which is based on the school's number of students.
An equalization problem will result if SQ 801 passes, because 5 mils (one one-thousandth of assessed district value) is not equal for all schools. School "A" may receive $1 million for its Building Fund, which $500,000 could be used for teacher salaries and student needs - but school "B" may receive only $500,000 of which none could be spent for teacher salaries. Inequity is automatically created for schools operational monies, if SQ 801 passes.
Inequity among schools is created by the state legislature, since lawmakers placed the state question on the November ballot. The underlying intent of the authoring lawmakers is to take the burden off the state for providing operational funding, and place it square on the shoulders of local property owners. As a result of SQ 801 passing, many "property poor" schools will sue the state for "equal treatment". Remember, operational monies are currently equalized, but inequity will be created, if SQ 801 passes. Those "property poor" schools will likely win the lawsuits which will follow 801 passage, because all public school students deserve equal treatment. A judge is likely to order the state legislature to equalize those Building Fund monies which public schools receive. The legislature is unlikely to take operational monies from wealthy schools to provide equity, but very likely to allow poor schools to increase their millage rates (from the current 5 mils to 10 or 15 mils). Since property tax is calculated by multiplying the millage rate by the net assessed property value, property tax in poor districts will likely skyrocket. For example, 5 mils of a $100,000 market value home, of which $11,000 is assessed, will result in ".005 x $11,000 = $55 going to a school's Building Fund. Increasing the millage rate to 10 mils will result in ".010 x $11,000 = $110, or a $55 increase for your property tax.
Many conservatives believe State Question 801 is a backdoor attempt by lawmakers to increase your property tax. The bottom line is this: If you want your property tax to increase - vote "yes" on SQ 801...
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