School board votes to change tax percentages

Posted 1/20/17

Baldwin County Board of Education members cast a divided voted Thursday night to ask the legislative delegation to reallocate funds generated by a 1984 penny sales tax.

The move was the result of …

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School board votes to change tax percentages

Posted

Baldwin County Board of Education members cast a divided voted Thursday night to ask the legislative delegation to reallocate funds generated by a 1984 penny sales tax.

The move was the result of a request from the Baldwin County Commission, after that body recently extended the 2010 penny tax and made it permanent.

In their first public meeting since the passage of the penny tax extension, the Baldwin County Board of Education met Tuesday night in Silverhill to discuss how that extension happened and whether the board would support the percentage swap on the 1984 penny tax asked for by the county commission.

Superintendent Eddie Tyler told the board he wanted to take them through the process of how the penny tax continuation occurred, an event he called the “most amazing gift he’d seen in years.”

“I’m addressing the pervading concerns I have seen and read from some of the citizens in Baldwin County,” Tyler said. “Some have suggested this was done in the darkness of night, which was not the cause.”

Tyler said the amendment voted on back in 2012 that extended the 2010 penny tax for 2018 did not actually include a provision to have another countywide vote.

“In that amendment, there is no provision for additional votes of the people,” Tyler said. “Nowhere is it mentioned it would come back in front of the people for a vote.”

Tyler said the potential loss of the penny tax had been a massive problem for the system in being able to attain stable funding and school officials were highly concerned about the cuts that would likely have to take place if it were not extended.

“I’ve expressed frustration at how difficult it has been and would continue to be in developing a three to five year plan for the system but there was always a footnote that said ‘What about the penny tax?’” Tyler said. “We’ve had an inability to develop plans because of a cycle of three to five year resolutions because we didn’t know what our finances would look like long term.”

Tyler said resolving the penny tax issue and creating more stability has continually been the priority for him and the board.

“This has been a distraction for many of us,” Tyler said. “Now, we can get back to the people’s business. We can be less concerned with the politics of funding schools and more concerned with educating our children.”

Tyler said the swap in percentages proposed by the commission for the 1984 tax, where the system would now get 40 percent and 55 percent would go to the commission for road resurfacing and paving, was a step he felt necessary in continuing to build a better partnership with the county commission.

“Those funds will go to help fix and maintain roads and infrastructure that our children and buses travel every day,” Tyler said. “Investing $4 to $5 million a year back to the county will result in an appreciation of revenue. That investment will give us a return … we’re investing in the quality of life for Baldwin County, investing in safer roads for our school buses that carry thousands of children.”

Tyler added that already made budget decisions, like changing system technology from MacBooks to Chromebooks, would help net a savings for the system that would make up for the change in those revenues.

Several Baldwin County residents had questions for Tyler and the board about the potential penny tax revenue swap.

Retired teacher Larry Lindsey questioned if Tyler really was recommending passing up that much revenue from the 1984 penny tax.

“We are passing that up, but based on the savings I’ve mentioned, I think it’s important to note that we could have lost $37 to $40 million in future revenues without getting the more recent penny extended,” Tyler said.

Common Sense Campaign Leader Lou Campomenosi said many of his members and others around the county still felt the board lacked credibility because of how the money from the 2010 penny and its 2012 extension were spent.

“We still haven’t seen the kind of movement toward a very good financial audit,” Campomenosi said. “The board has had an opportunity to doe this, but the board turned its back on that. The point about ideology doesn’t concern me about this. This is a question about public credibility and the degree to which public education needs public involvement.”

Campomenosi said public support about this tax or any future taxes the board may need to combat growth would continue to be an issue.

“The public support is critical to the running of this,” Campomenosi said. “Growth is not going to stop. Sooner or later, you’re going to have to come back for more taxes and we’re going to run into another buzzsaw.”

David Vosloh, finance committee chairman for the Community Advisory Task Force, said his committee looked heavily into the system’s financial practices and saw none of the issues that would warrant needing a full forensic audit.

“We found nothing that indicated any need for an audit,” Vosloh said. “Any attempt to suggest a need for a forensic audit is just pure baloney.”

Daphne businessman Kevin Spriggs urged board members to vote against the resolution redistributing the 1984 penny because he saw it as a cut to school funding.

“This is another cut to the funding of the Baldwin County School System,” Spriggs said. “Maybe it’s $4 to 5 million in the first few years, but over time inflation increases the amount of sales tax as it progresses.”

BCBE member David Cox said he had serious concerns about voting to redistribute the money, as he felt it would negatively effect the system’s pay as you go program for school construction.

“This deal, combined with the loss of the one mill that will roll off in 2018, will basically almost completely defund the pay as you go program,” Cox said. “I understand revenue will grow as the county grows, but we’ve made the argument that the revenue growth does not keep up with our expenses. To say that this is a short term problem that will eventually correct itself, I don’t agree with that. As much as I appreciate what the county commission has done, I’m not willing to give up $5 million and throw pay as you go out the door.”

Board member David Tarwater said he considered the current construction funding as more of a “pay what you’ve got” program.

“Even without this $5 million, we would never be able to do what we needed to do in Baldwin County,” Tarwater said. “I have long said adequate and stable funding was our issue in Baldwin County education. When I heard this come out last week, I said a prayer of thanks. For the first time, this system can start making some real plans and people that work for the system can make some real plans.”

Board member Angie Swiger said she was on the board when the system had to make massive staff cuts and tough decisions following the recession in the late 2000s. She said without the penny tax extension, the board would have likely had to make similar tough choices, something she was glad not to have to go through again after this deal came through.

“In order to make people understand and not feel like we are threatening, those cuts would have had to have been made,” Swiger said. “We don’t want to risk children’s opportunities so that we can prove a point politically. This deal, it was nothing short of miraculous because it’s something I never thought would see happen.”

At the board’s Thursday night meeting, board member Tony Myrick said he had issues with taking money from the pay as you go program and couldn’t support the resolution.

“I just have a problem taking money from the children to build roads,” Myrick said. “I’m having a problem with this. I do not want to see everything south of I-10 fill up with portables again.”

Cox said he felt giving up $5 million a year was too much to ask of the system.

“When I hear $5 million, $5 million is two or three additions to schools or almost 50 teachers,” Cox said. “That’s why I’m not willing to voluntarily give that away.”

Cauley immediately rebutted Cox.

“So, you’re willing to risk $40 million to save $5 million?” Cauley asked. “You’re willing to gamble on that?”

Cox and Myrick voted against the resolution, while the others voted in favor. Board member Cecil Christenberry was absent due to a previously planned trip to Israel.