Recommending A School Parcel Tax

Community Members Ask School Board to Consider Tax in 2010

We are parents whose children have benefitted from the high quality education program provided by our Davis school district (DJUSD).  We are aware that California and our local schools are facing extraordinary and challenging economic times.  Due to the State’s ongoing budget crisis, we are now (again) faced with increasing class sizes, eliminating courses and programs, and cutting teachers and counselors that our students really need.  We hope that the Davis Schools Foundation can again raise funds to reduce the impact in the coming year, but the funding loss to our schools is ongoing and will require a multi-year solution.

We write to urge the Davis School Board to address the loss of over $9 million in funding from the State, by taking these actions:

• Place a new parcel tax before voters in 2010 that provides the Davis community with an opportunity to preserve the core educational services currently targeted for elimination.
• Include a “tax reduction trigger” which reduces (and eventually eliminates) the new parcel tax when funding owed to the school district by the State is restored.

Fiscal Crisis and the Impact on Our Davis Schools

In the fall of 2008, our Davis School Board placed Measure W (an emergency parcel tax of $120/parcel, $50/dwelling) before our community to protect elementary science instruction; secondary science, math, English, and social science courses; elementary music; librarians at elementary and secondary schools; and secondary class size reduction for 9th and 10th grade English and math.  Over 75% of Davis voters supported Measure W.

Unfortunately, an unforeseen economic meltdown has precipitated an unprecedented  funding crisis for California, which has impacted our public schools.  Since Measure W passed in November 2008, our school district has experienced an additional $1,150 per student funding cut by the state. As a consequence, Superintendent James Hammond has been forced to propose $5.6 million in new cuts to essential educational services that will take effect in 2010-11.

The Davis Board of Education has authorized staff to investigate the feasibility of asking Davis voters to approve a new or replacement parcel tax to preserve the programs and services currently targeted for elimination. We believe another stop-gap tax measure which is designated to sunset is the best option.

Protecting Our Davis Schools and Taxpayers

The nation’s fiscal crisis has profoundly impacted our state and city.  State and county unemployment rates are currently at 12.1% and 13.7% respectively.  County and city businesses are struggling, U.C. Davis is facing significant budget shortfalls and all local governments are fighting to preserve valued public services.

Historically, Davis voters and taxpayers have always supported local schools and efforts to avoid budget cuts. For the sake of our children and the importance of the educational services provided to them, we are strongly supportive of providing Davis voters the opportunity to mitigate the $5.6 million in budget reductions caused by the dramatic core revenue cuts from the state.

However, as we consider the likelihood of Davis voters approving any increase in the current DJUSD parcel taxes, we believe the Board of Education should assure voters that increase is temporary and will be eliminated when revenues, owed to the school district under California law, are restored to local school budgets.  Currently, Davis schools are owed over $1,150 per student or approximately $9.9 million in ongoing funding by the state of California.  The Governor’s 2010-11 budget proposals clearly acknowledge this legal I.O.U. and establishes the amount as a 18.355% “deficit factor”.  Under law, the state is required to pay this I.O.U., when general fund revenues return to normal. Moreover, these I.O.U.’s have always been repaid in the past.

A history of the deficit factor — otherwise known as the IOU repayment - to California school districts from the state show current rate at 18.355%, an historic high. Reprinted with permission from School Services of California, www.sscal.com.

That is why we believe the Davis Board of Education should ask for a temporary tax that provides for its reduction and elimination when the current IOUs are repaid.  This tax payment reduction and eventual sunset can be included in the measure so there is certainty for the voters that the tax is temporary.

Finally, we ask that any parcel tax increase designed to mitigate cuts, be placed before Davis voters in 2010. This is because our students, parents and school officials need additional certainty on funding and service levels as they begin to plan for the 2011-12 school year.

As advocates for strong public schools, we support offering Davis voters the opportunity to consider a temporary parcel tax.  Such a measure would protect the children and our community from the long-term effects of devastating program and personnel cuts.  It would also guarantee taxpayers that this special assessment must be lowered and eliminated as the State returns the revenues it owes the District.

We thank the Board of Education and the Davis community for considering our perspective.

Signed: Jim Belenis, Ann and Bob Blattner, Adam and Jan Bridge, Chuck Foster, Michael Harty, Michael and Susan Hulsizer, Hiram Jackson, Pam Pacelli, Sheryl Patterson, Richard Reed and Dan Troy