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10/21/2010
BCTA objects to GB schools raising taxes to fatten cash reserves
The Brown County Taxpayers Association today said the Green Bay School Board is poised to raise school property taxes without justification. “There is no valid reason for a property tax increase,” said Rich Carlstedt, a Vice President of the government watchdog group. “The district is awash in money.”
The school district acknowledged it just completed its 2009-2010 fiscal year with a surplus of $5.8 million. District expenses were $233.1 million and tax revenues were $238.9 million. Yet, the district intends to raise the property tax levy by $3.1 million, an increase of 4.1%.
The district intends to use the $5.8 million surplus from the recently completed year to increase cash reserves by 18%. When coupled with last year’s action to retain surplus tax dollars in the cash reserves, these reserves will now have increased 58% ($14 million) over a two-year period.
Carlstedt said “there is simply no justification for increasing the property tax levy for purposes of stockpiling tax money in district cash reserves. The school district is saying a vast increase in their cash reserves is important enough to sock taxpayers with a 4% tax increase – where is the compassion for taxpayers on the part of this school board?”
The BCTA was also critical of the district’s use of the Community Service Fund (CSF), spending which gets zero state aid revenue and falls 100% on property taxpayers. The district plans to spend $3.2 million on expenditures it categorizes under the CSF. Carlstedt maintained “this district’s use of the CSF defies the intent of the state law that established the fund, and transfers 3.1 million dollars of core function spending completely onto the property taxpayer. If the district kept this spending where it belongs – in the general fund – the state would pay two thirds. Why does the district simply walk away from two million dollars of state aid which would give the property tax payers some relief? They should eliminate the CSF, put the spending in the general fund, and end their plans to raise the property tax levy.”
Carstedt noted the CSF “was intended for spending on things like weekend basketball leagues where districts charged fees to cover the cost. In Green Bay, the district packs all sorts of core educational costs into the CSF, and the property taxpayer is left holding the bag. I wish the school board members would stand up and give the taxpayers some justification for this.”
For information about the Brown County Taxpayers Association, please contact President Richard Parins
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