tag:blogger.com,1999:blog-4289345346387194350.post2152407124492097013..comments2023-06-24T10:52:34.846-04:00Comments on EducateHilliard.com: Westerville Levy Repeal EffortPaulhttp://www.blogger.com/profile/05960574627644930183noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-4289345346387194350.post-37059544946148762252012-09-21T15:38:04.828-04:002012-09-21T15:38:04.828-04:00It's been a while since I tried to do any in-d...It's been a while since I tried to do any in-depth research into HB920, but I do recall that it modified language across several sections of the Ohio Revised Code, so while the item you cited enters into the equations, it's not the complete picture.<br /><br />Remember that the voted millage never changes, it's the so-called Reduction Factor which changes. That was the technicality which tripped up the Westerville repeat effort: the levy in question didn't change the millage rate of the levy it replaced, even though over time the overall Reduction Factor had been lowered to reflect increasing assessed property values, which meant that the replacement levy, at even the same millage rate, would collect more in taxes because it would be based on current home values (ie without reduction) rather than the older home values associated with the preceding levy.<br /><br />You are correct, that the education community says that the problem is that property tax collections do not automatically rise with inflation. My point is that there is no connection between property values and inflation. They can, and often do, move in opposite directions.<br /><br />The other relationship in this discussion is the relationship between compensation/benefits costs and inflation, because it is comp/benefits costs which drive spending. Because of the structure of the compensation system in all Ohio school districts, there is no direct connection between comp/benefits and inflation. <br /><br />Salaries and benefits are determined by negotiation between the school board and the unions. The Ohio Revised Code does specify the minimum pay for public school teachers, but no school district in central Ohio is anywhere close to those minimums. Beyond that, teacher pay is simply a reflection of how hard the school board negotiates.<br /><br />Having lived through the insanity of the true inflationary period of the late 1970s, we have very little true inflation today. Certainly prices of some stuff is going up, but if the Fed keeps the money supply in circulation managed well, the rise of prices of some items will force consumers to either reduce their consumption of those items, or to reduce their consumption of other items. That reduced demand should lead to lower prices for those 'other items.' In time, consumers and producers move to a new equilibrium.<br /><br />I fear what we have today is stealth inflation, since the Fed is buying up all the debt the Treasury wants to issue as a way to keep interest rates near zero while simultaneously giving the government an credit card with no credit limit. I've not yet fully understood what happens if someone decides to unwind all that.<br /><br />To some degree, it doesn't matter to me what the causes are of the need to ask the public for more money every once in a while. That seems like a good thing to me. If the school district can't explain why they think they need more money, maybe they shouldn't get it.Paulhttps://www.blogger.com/profile/05960574627644930183noreply@blogger.comtag:blogger.com,1999:blog-4289345346387194350.post-8374921038259303932012-09-21T14:45:49.968-04:002012-09-21T14:45:49.968-04:00Paul - you have some great info here, but I'm ...Paul - you have some great info here, but I'm not sure that you have everything 100% correct.<br /><br />HB920, as you point out, does not directly cut revenue raised over time. Article XII, Section 2a(C)2 of the Ohio constitution states:<br /><br />"(2) With respect to each voted tax authorized to be levied by each taxing district, the amount of taxes imposed by such tax against all land and improvements thereon in each class shall be reduced in order that the amount charged for collection against all land and improvements in that class in the current year, exclusive of land and improvements not taxed by the district in both the preceding year and in the current year and those not taxed in that class in the preceding year, equals the amount charged for collection against such land and improvements in the preceding year. "<br /><br />There is no similar provision given to raise the millage should property values fall. I'm not sure the courts have ever stated this is the case. Clearly they would never be allowed to increase millage above the approved value, but I'm not sure that this even allows for millage to ever rise, as the constitution only talks about reductions. So you might get a case like this:<br /><br />School district with $100 million in property in its borders passes a 10 mil tax, thus raising $350,000 per year in taxes. The next appraisal, the property value increases to $110 million, so the millage is reduced to 9.09 mil, so that $350,000 is still collected. But what happens if property values drop to $100 million the next year? Is the millage increased to 10 mil? It doesn't appear to me that it is. If the property values drop to $90 million, it is clear that they can't increase the millage past 10 mil, so the tax collected certainly wouldn't be more than $315,000.<br /><br />It seems to me that the government made the same false conclusion that Wall Street did - that home values would never drop.<br /><br />When it comes to the comment about inflation, what I hear more broadly is not that the education community is drawing a connection between property values and inflation - but rather that the funding mechanism we have only allows them to compensate for inflation by asking for property tax increases - without additional levies, they can't match spending even with inflation. And that is completely true - they have no recourse to even keep inflation-adjusted spending flat apart from asking for levies again and again and again and again..... And while it hasn't been a problem in recent years, public wages in general do tend to outpace inflation over time... so if you matched that wage growth, you end up with even more frequent demands for property tax increases....Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4289345346387194350.post-23610881706726793912012-09-09T23:27:59.577-04:002012-09-09T23:27:59.577-04:00What kind of advice are these overburdened taxpaye...What kind of advice are these overburdened taxpayers in Westerville getting?? Seriously, that 1851 guy couldn't figure out a technicality before getting wasted signatures?!? And why the heck didn't they go for more tax relief? I mean c'mon, that levy they're trying to repeal is for 11.4 - they got a lot of signuture and could have got more if there was a bigger cut. They were duped by someone who just wants to get political attention for himself. This is unbelieveable!!!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4289345346387194350.post-73066821650081660312012-09-09T16:15:30.865-04:002012-09-09T16:15:30.865-04:00The question is muddled, as it was not a direct ta...The question is muddled, as it was not a direct tax increase just a renewal, but on the other hand the revenue will increase due to values being different<br />than when originally voted. <br /><br />I can understand the chagrin about it not making it on the ballot, but my feelings are is the court will rule on the basics and say it cannot be on<br /><br />What should have been done, and at this point I am betting on, is the Westerville group will target a different levy. I do have issues with outside groups stirring the pot in the district, its bad enough there is enough infighting<br /><br />Mark has a point I do agree with, its not ok to challenge a yes vote very easily, and the districts can come back, with use of taxpayer dollars by the way, time after time. <br /><br />On another front, NOTHING ABSOLUTELY NOTHING IN THE AGENDAS OF THE UPCOMING SCHOOL BOARD MEETING NOR THE LAST, ABOUT THE UPCOMING HEARINGS ON<br />THE NEW DEVELOPMENT. THIS SHOULD BE DISCUSSED<br />IN PUBLIC BY THE BOARD.. WHY NOT The board and district and its employees certainly step up in public and blame the taxpayer for levies, not understanding, corralling students because of family comments etc, but we cant even get a agenda item on a development that potentially could fill a<br />elementary school. <br />Same stuff, different day, harass the students<br />and their parents but dont stand up to the city<br />publicly, except for one member. <br /><br />What happened to our newest board member and campaign rhetoric. Same stuff, different board member, same outcome, same old deflection<br /><br />And when are we going to have a serious discussion on our remedial rate that remains high for the standard awarded.Ricknoreply@blogger.comtag:blogger.com,1999:blog-4289345346387194350.post-26557158800558262982012-09-06T21:51:07.251-04:002012-09-06T21:51:07.251-04:00I am not so sure the Court will agree. The court ...I am not so sure the Court will agree. The court has over the years (as you are aware) gone to great pains to maintain local funding of education. To now essentially cut off local voices at the knees would seem counterintuitive.<br /><br />That said, regardless, they will take another shot at this, and I'd wager good money there will be a lot more than 5000 signatures next time around.<br /><br />And HSCB take note; all of your levies were new levies... not a replacement levy in sight...<br /><br />Oh, and Mr Dyer is a typical leftist: it's OK for a school board to come back repeatedly after being told "no", but it's not OK for the voters to come back and challenge a "yes" vote? Is it any wonder we are in such a mess when people use that kind of logic to support changing the law. I honestly thought that We The People were still in charge (even if only just...)Mnoreply@blogger.com