TAX NEWS - June 2010

Utah Tax: Davis District tax increase accused of being 'immoral'

FARMINGTON — "Property taxes are immoral. It is theft."

Layton resident Jean Barnes and her husband Lyle were just two of the people who spoke during the public hearing at the Davis Board of Education meeting Tuesday night. Jean Barnes said it was not right to take from one person and give to another.

"I feel like I have to defend my right to own property," she said.

The school board approved a 2010/2011 budget Tuesday evening, with plans to compensate for the $31.1 million loss that includes a proposed tax increase. Board members opened the public hearing and listened to several residents, including those running for positions in the school board.

"We need to value our citizens' taxes," said Peter Cannon, who is running for district 3 on the school board.

"Our budget reflects the ideas of meetings held with the administration, with employees, and some with citizens," said Davis School District business administrator Craig Carter.

To alleviate the $31.1 million loss, the district has taken steps by not replacing 65 employees, mostly at the district offices, by keeping the soft hiring freeze in tact, by eliminating two school days, and by proposing a tax increase. That tax increase would help cover more than $7 million of the budget's deficit.

"This has been a painful process for everyone," said Davis School Board president Marian Storey.

While the district's survey, given to about 400 registered voters, showed support of a tax increase, the district has stressed that this approved budget is tentative. The board plans to re-visit some issues.

"We do take public comment into consideration, and we are taking notes," said Storey.

An insurance rate increase, retirement rate adjustments, hiring more teachers for the 960 students coming into the district, and re-instating the step and lane pay increases are a few of the things the district has to account for in this year's budget.

The total budget came close to $384 million, with the biggest percentage of that going toward day-to-day operations, including classroom instruction. The district spends approximately $6,300 per student, well below the 2009 national average of close to $10,000, putting Utah 51st in per pupil spending.

"Davis is a poor district," said Carter. "We do not have the property tax revenue other districts in the state have."

Residents gave the district ideas ranging from Cannon's suggestion of an across-the-board-pay-cut to cutting back on electronic devices and un-used workbooks.

"I don't care if it's fair, this economic downturn isn't fair," said Cannon. "Increasing taxes isn't fair." He also suggested re-evaluating the district's health insurance offers.

For the school board, the bottom line is a matter of legality. The district has to have a budget approved by the beginning of July. However, that budget can be re-visited. Residents believe there are still issues to be worked through.

"We have this idea that teachers are over-worked and abused," said Barnes. "It's because people in education don't realize how low the incomes of other people are. You should consider that you're not better than the population in Davis County."

Michael Sperry, running for District 6 of the school board, asked that the district put any savings back into reducing class size. Carter and other board members agreed.

"What we gained over the past six or seven years in reducing class size was lost in two," said Carter.

Truth-in-taxation hearings will be held in August.