Levy increase first in 15 years

If Springfield R-XII voters approve a 20-cent increase in the property tax levy Feb. 5, it would add an extra $320 to the annual tax bill on commercial real estate with an assessed val-ue of $100,000.

The tax bill now for such a property is $2,870.

The levy would also bring an additional $7 million to operate Springfield schools, according to Charlie Drewel, chief financial officer for the district.

The increase in property taxes on commercial property is calculated the same as for residential property multiply the assessed valuation stated on the tax bill from the Greene County Assessor by 0.20. Divide the number by 100; the result is the increase.

Real estate taxes on a $100,000 piece of residential property will increase by only $38. The tax bite now is $545.41.

Funding sources

Last year, the local property tax was the largest source of local monies, generating about $68 million for the school system, or about 64.5 percent of its operating needs.

Altogether, about $107 million was generated locally, Drewel said. The balance of city-wide funding came from delinquent taxes, Proposition C (sales tax), the financial institution tax, payments in lieu of taxes, commercial real property surtax, tuition, investment earnings, the food service, student activities and miscellaneous, for a total of $105 million.

From the county, it received money from fines, forfeitures and escheats, state-assessed utilities and other county miscellaneous to add another $2,251,570 to the schools operating fund.

Altogether there are 68 other funding sources for the school district besides property taxes, Drewel said.

The need

Focusing on reducing the drop-out rate by increasing teacher-to-student ratios, replacing ancient school buses and re-pairing schools are just some of the things Superintendent of Schools Dr. Jack Ernst wants to do with an extra 20 cents added to the $2.87 operating tax levy.

The district hasn't had an operating levy increase in 15 years, he said. To Ernst, who is the chief executive officer of the third largest employer in the city, that's just not the way to run a business, which is exactly what the school district is, he said.

During a Jan. 16 lunch with the Springfield Metropolitan Bar Associa-tion, Ernst told members that many of the district's school buses, for example, are eight or nine years past depreciation and require many dollars to keep running. New buses could be depreciated and the money spent on repairs saved.

There's also a public misunderstanding about the increase in property taxes last year, according to the school district brochure about the levy that Ernst distributed to the attorneys.

Although property taxes went up in 2001, the school district didn't get a windfall. In fact, state law requires that it reduce its levy by seven cents to prevent that, and also so the levy wouldn't exceed the rate of inflation.

Although the school system did get more money last year from taxes, the state reduced its funding by $3.1 million to offset the increase.

Ernst said the revenue generated by the increase will go toward three enterprises improving student literacy and achievement; building maintenance and equipment needs; and better salaries and benefits for all district employees.

Another concern is that the levy hike will adversely affect those who live on fixed or decreased incomes because of age or disability.

Assessor Jean Twitty said the state has a "circuit breaker" law that provides property tax relief as either a tax credit or a direct refund for those who meet certain requirements, including disabled veterans. She has application forms at her office and so does the Department of Revenue on Park Central Square.

Follow the money

The district plans to hire kindergarten teachers for classes that exceed 22 students per adult, and add half-time aides in grades 1-3 in schools where all classes in grades 1-3 exceed 20 students.

It will establish homework centers at five sites in the city staffed by teachers to assist students during the school year.

Students at risk of dropping out or failing would be able to go to night school, have individualized computer instruction, and staff will work directly with middle school students.

Ernst said the school system has re-duced the dropout rate to a six-year low of 5.65 percent.

The system will add elementary reading and math instructional specialists to train teachers, provide classroom support and assist students.

The school district reported that its students outperform others on standardized tests, exceed the average on national and state scores on the ACT exams and exceed the state average on MAP tests.

Tax numbers

In 2001, county-wide, real and personal property taxes assessed equaled $2.2 billion, according to Drewel.

The total amount assessed in commercial real estate taxes in 2001 was $646.2 million, Drewel said. Of that utilities and railroads were assessed $2.5 million.

Residential taxes totaled $1.1 billion; agriculture, $3.9 million

Personal property taxes, out of which schools also are funded, totaled $451.8 million.

Of that, $9.1 million was assessed to utilities and railroads.

Not all real property owners pay the full tax some is abated, Drewel said, to the tune of $13.9 million "as an incentive for commercial development, primarily."

He said the tax amount reported to him didn't include calculations of funds that would be excised from the tax increment financing area "because they hadn't been identified (when) the numbers were given to me last fall."