Whitko Holds Public Hearing On Tax Referendum
July 28, 2016 at 4:25 p.m.
By Daniel [email protected]
The discussion and subsequent question-and-answer session was met with skepticism by many while some voiced their support for the referendum.
The referendum, which the corporation is asking people to vote yes for, would tax up to .20 cents per $100 of assessed valuation for people's property who live in the Whitko School Corporation for seven years.
Several times Whitko Superintendent Steve Clason and Tom McFarland, director of financial operation, said that if the corporation has a balanced budget a tax won't be levied and that if it isn't, the amount taxed may not reach the .20 cent-maximum.
During a presentation, McFarland noted that the money would only be used in the general fund.
Other funds like transportation remain funded.
With the general fund, that money comes from local property taxes then is sent to the state who then gives it back to the school corporation.
More than 90 percent of the general fund goes to paying salaries and benefits while 8.9 percent is in operations.
McFarland said that if someone owned a $100,000 home that most likely, after deductions were factored in, that person would pay on half the assessed value ($50,000) which would mean an extra $100 if the corporation asked for the maximum .20 per $100.
During the question-and-answer session, someone in the audience asked if a proposed cap on property taxes would affect the referendum.
McFarland said that it wouldn't and people would pay the same even if the property tax cap passed.
Another asked if the government would control people's referendum accounts. McFarland said that wouldn't be the case.
Clason told those in attendance that last year because of budget cuts, 26 jobs were cut and 20 more staff members had hours reduced.
A pay-to-play program for sports was also introduced.
Clason said it was important to have a balanced budget, and in order to do so there were cutbacks on such things like not buying any library books in 2010.
The superintendent also clarified that the money to raise awareness and campaign for a referendum came out of a fund donated by individuals and not a school fund.
Currently, Whitko has a balanced budget for 2011. But McFarland noted that could change if the state decides to make more cuts.
In 2011, there will be a bit of a safety net as Whitko is expected to receive $350,000 from a federal jobs bill that passed. That money has to be spent by September 2012 and is held by the state.
If the state doesn't cut the budget any more, even if the referendum is passed, it won't be used in 2011.
One person asked why the corporation was pushing to get this referendum on the ballot for 2010 if it might not be used for 2011.
"The state mandates that this take place during a general election," said Clason.
Clason went on to say that if the referendum were to be held on a non-election year like 2011 it would cost $100,000 to hold a special election.
When McFarland and Clason presented how tight the Whitko budget is, it was met with skepticism.
"We've cut back on everything we possibly can without cutting programs and sports," said McFarland.
When asked if there could be a pay cut for employees across the board, it was noted that to do that the contract with the teacher's association would have to be reopened.
Clason said that all ways of cutting salary would be looked at.
"Can we get to a $10 million budget? Absolutely," said Clason. "Can we do it providing education kids deserve no way."
If more staff were to be cut, it would increase class size which is already at an average of 30 students from grade 4 and up.
One woman noted that the extra money would be tough on senior citizens and people who have been affected the economy.
Some made statements that the referendum would keep businesses from coming to the Whitko School District.
McFarland said he didn't believe that would be the case as most businesses receive tax abatements when they move in.
When asked why Whitko's superintendent's office had $82,000 more in expenditures than Manchester Schools, McFarland explained as he did with other questions of that nature, that it is hard to compare what one corporation does to another.
McFarland said he didn't know if a school like Manchester spread those costs out throughout the corporation.
Several people, including board member, Cindy Kreger, said that at some point someone paid for their children's education and it was right for them to do the same.
Kreger noted that her household has seen a 45 percent decrease in income yet she still supported the referendum.
McFarland also noted that in 2013 $600,000 would come off for debt services on school projects and that money would lower the tax rate. The percentage of the tax rate decreasing is unknown because it would be based on 2013 assessed values of property.
Clason said there have been discussions of having another public meeting though nothing has been set.
The election is slated for Nov. 2 and will appear on ballots in five townships in Kosciusko and Whitley counties.
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The discussion and subsequent question-and-answer session was met with skepticism by many while some voiced their support for the referendum.
The referendum, which the corporation is asking people to vote yes for, would tax up to .20 cents per $100 of assessed valuation for people's property who live in the Whitko School Corporation for seven years.
Several times Whitko Superintendent Steve Clason and Tom McFarland, director of financial operation, said that if the corporation has a balanced budget a tax won't be levied and that if it isn't, the amount taxed may not reach the .20 cent-maximum.
During a presentation, McFarland noted that the money would only be used in the general fund.
Other funds like transportation remain funded.
With the general fund, that money comes from local property taxes then is sent to the state who then gives it back to the school corporation.
More than 90 percent of the general fund goes to paying salaries and benefits while 8.9 percent is in operations.
McFarland said that if someone owned a $100,000 home that most likely, after deductions were factored in, that person would pay on half the assessed value ($50,000) which would mean an extra $100 if the corporation asked for the maximum .20 per $100.
During the question-and-answer session, someone in the audience asked if a proposed cap on property taxes would affect the referendum.
McFarland said that it wouldn't and people would pay the same even if the property tax cap passed.
Another asked if the government would control people's referendum accounts. McFarland said that wouldn't be the case.
Clason told those in attendance that last year because of budget cuts, 26 jobs were cut and 20 more staff members had hours reduced.
A pay-to-play program for sports was also introduced.
Clason said it was important to have a balanced budget, and in order to do so there were cutbacks on such things like not buying any library books in 2010.
The superintendent also clarified that the money to raise awareness and campaign for a referendum came out of a fund donated by individuals and not a school fund.
Currently, Whitko has a balanced budget for 2011. But McFarland noted that could change if the state decides to make more cuts.
In 2011, there will be a bit of a safety net as Whitko is expected to receive $350,000 from a federal jobs bill that passed. That money has to be spent by September 2012 and is held by the state.
If the state doesn't cut the budget any more, even if the referendum is passed, it won't be used in 2011.
One person asked why the corporation was pushing to get this referendum on the ballot for 2010 if it might not be used for 2011.
"The state mandates that this take place during a general election," said Clason.
Clason went on to say that if the referendum were to be held on a non-election year like 2011 it would cost $100,000 to hold a special election.
When McFarland and Clason presented how tight the Whitko budget is, it was met with skepticism.
"We've cut back on everything we possibly can without cutting programs and sports," said McFarland.
When asked if there could be a pay cut for employees across the board, it was noted that to do that the contract with the teacher's association would have to be reopened.
Clason said that all ways of cutting salary would be looked at.
"Can we get to a $10 million budget? Absolutely," said Clason. "Can we do it providing education kids deserve no way."
If more staff were to be cut, it would increase class size which is already at an average of 30 students from grade 4 and up.
One woman noted that the extra money would be tough on senior citizens and people who have been affected the economy.
Some made statements that the referendum would keep businesses from coming to the Whitko School District.
McFarland said he didn't believe that would be the case as most businesses receive tax abatements when they move in.
When asked why Whitko's superintendent's office had $82,000 more in expenditures than Manchester Schools, McFarland explained as he did with other questions of that nature, that it is hard to compare what one corporation does to another.
McFarland said he didn't know if a school like Manchester spread those costs out throughout the corporation.
Several people, including board member, Cindy Kreger, said that at some point someone paid for their children's education and it was right for them to do the same.
Kreger noted that her household has seen a 45 percent decrease in income yet she still supported the referendum.
McFarland also noted that in 2013 $600,000 would come off for debt services on school projects and that money would lower the tax rate. The percentage of the tax rate decreasing is unknown because it would be based on 2013 assessed values of property.
Clason said there have been discussions of having another public meeting though nothing has been set.
The election is slated for Nov. 2 and will appear on ballots in five townships in Kosciusko and Whitley counties.
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