[speedgibson] Speed Gibson: Property Tax Reform for Dummies

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Posted by Speed Gibson:
Property Tax Reform for Dummies
http://speedgibson.powerblogs.com/posts/1201833418.shtml


   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?