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Saturday, May 5, 2018

Will County schools seek retail sales tax to boost revenue


Steve Balich Editors note:   The schools are about 70% of the property tax bill. When is enough of our tax dollars to schools going to be reached. It feels liken they want 50% of what we make in a year just as a starter point. I know this exaggeration is not true, but to make a point when are the schools going to stop taking. Thank God 33C my school district is not following in this example of tax and spend. 33C just hired a new superintendent at a reasonable  $150,000.  Schools need to cut spending instead of  taking more money from hard pressed taxpayers. Remember, as taxes increase home values decrease.  

Will County schools seek retail sales tax to boost revenue

Susan DeMar Lafferty
Daily Southtown

About half of Illinois’ 102 counties have implemented a sales tax to benefit its schools, and now there is a similar effort underway in Will County, according to local school officials.
Summit Hill District 161 in Frankfort Township, and Richland District 88A in Crest Hill have recently passed resolutions to place a referendum on the November ballot asking voters to approve an additional 1 percent “County School Facilities Sales Tax.”
School officials in Will County appear to be divided on the issue.
But according to Regional School Superintendent Sean Walsh, to get this measure on the ballot, resolutions must be passed by school districts that represent more than 50 percent of the student population in Will County, which he estimates to total between 130,000 and 140,000.
“The law has been around since 2007, but Richland’s resolution was the “first” he has ever received, he said.
“There have always been discussions on it, but I have yet to see formal action,” Walsh said.
Primarily downstate counties have supported this tax, but neither Cook County nor any of the collar counties have ever tried, according to officials.
It was projected that a 1 percent sales tax could generate $60 million annually for Will County schools, which would then be distributed to districts based on enrollment of students living in the county, according to Walsh.
His office serves districts that straddle other counties, such as Plainfield District 202, which would only receive funds for those students who live in Will County, he said.
The tax could be implemented in increments of one-fourth of 1 percent, up to a maximum of 1 percent, Walsh said.
The added tax would apply to items that are currently taxed, except vehicles, boats, RVs, farm equipment, unprepared food and drugs.
Funds from this sales tax can be used for building maintenance projects, technology infrastructure, security enhancements, life safety work, energy efficiency improvements, and to abate debt payments, according to information provided by school officials.
It cannot be used for direct instructional costs, textbooks, computers or salaries.
Summit Hill Superintendent Barb Rains said her district could see $1.4 million in annual revenues and could use these funds to pay for building maintenance projects that arise.
Richland’s Superintendent Joseph Simpkins said all districts in Will County were provided with information on how this sales tax could benefit their district.
Preliminary estimates indicate that his school could get $400,000, which it would use for “needed repairs and preventative maintenance,” he said.
New Lenox School District 122 is expected to pass the required resolution this spring, according to Superintendent Peggy Manville.
The sales tax resolution is expected to be discussed at the May board of education meetings in Lincoln-Way High School District 210, Frankfort 157-C, and Mokena 159, local officials said.
According to information provided by school officials, Lincoln-Way could receive $3.3 million, New Lenox 122, $2.4 million, Frankfort 157C, $1.1 million, Mokena 159 and Manhattan 114, $700,000 each.
Plainfield District 202 – one of the largest districts in the county – is “looking into it,” spokesman Tom Hernandez said.
“The board has directed the administration to get more information on it, but we have made no decisions yet,” he said.
Resolutions have to be passed by Aug. 20 to be on the November ballot, and if passed, the sales tax would first be collected July 1, 2019.
Even though the tax has been around for many years, not many districts have tried to educate the public about its benefits, Manville said.
“When we explain the benefits of the CFST, most people, although it is a tax, find it to be an effective option for not increasing property taxes for capital projects. The funds also can be used to pay down existing debt which would also assist in decreasing the property tax burden on our homeowners,” she said.
The tax would be paid by people from other counties who shop in Will County, she said.
“Since the State of Illinois does not provide any type of funding for the maintenance and renovations of aging school facilities, this is an option that boards and superintendents are looking at as another way to fund much needed projects,” Mannville said.
The decision is still up to the voters, since passing the resolution only authorizes the question to be placed on the ballot, she said.
In Homer District 33C, spokeswoman Charla Brautigam said, “Our school board is aware of the opportunity for a County School Facilities Retail Tax but does not want to inflict any more taxes on our constituents at this time.”
In Union School District 81, Superintendent Tim Baldermann said his board talked about it, but did not pass a resolution because “there isn’t a financial need here.”
The tiny single school district has an annual surplus of $600,000, he said.
For the past two years, his district has been able to rebate a small portion of its property tax revenues to its residents, he said.
“We can certainly see why other districts would consider the need for this type of additional revenue,” Baldermann said.
“Unfortunately, in this area, the state is only funding approximately 10 to 15 percent of the districts’ budgets when they are required to fund the majority of public education. If the state provided adequate funding, high property taxes and this additional sales tax wouldn't be necessary,” he said.

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