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Income tax is choice for Chardon schools
(by Joseph Koziol Jr. - February 03, 2010)
Income tax is choice for Chardon schools
By JOSEPH KOZIOL JR.
Calling it the fairer way to go in the current economy, the Chardon Board of Education agreed unanimously last week to place a 1 percent earned-income tax on the May ballot.
The board, meeting in a special session, said the earned-income tax would seek the support of those most able to pay -- those who still have jobs in this economy. It would enable recently unemployed residents to avoid being burdened with an additional property tax and leave those on fixed incomes untouched.
The tax is projected to generate approximately $4.8 million. To file the matter for the May ballot, the district must have documents to the tax administrator in Columbus by Feb. 8, 10 days earlier than the filing deadline for a property tax on the ballot.
Despite calling it the fairest approach, board members said they know no one will welcome higher taxes at this time.
"I'm in favor of the 1 percent bitter pill for persons with jobs," board President Blake Rear said. He said that may negate the worries for those who are unemployed and on fixed incomes. "For them, it's not a question of do you want to; it's a matter of I can't," he said.
Board member Paul Stefanko said he felt like he was choosing between the lesser of two evils. "The last thing people want is to increase the bills they pay," he said. "Property tax makes a difficult situation even more difficult for some. This economy is not fair. It's the best of a worst situation."
Board member Cynthia Sague, agreed, saying many people today are having trouble just finding money to put food on the table for their children, and the earned-income tax is the "fairer tax today."
The board also heard from regular meeting attendee Truman Parkinson, of Munson, who repeated his call for the earned-income tax.
He said retirees, who make up to 25 percent of the electorate, can vote for it, because there is no cost to them. The same is true for the jobless, he said. Empty nesters also could vote for it, he said, because they can expect an overall tax reduction when they retire.
"Folks with income may not like it, but they should be thankful that they have income from which to pay in order to keep the local schools "best in the state," thus assuring the finest possible preparation of our youth for the real world," Mr. Parkinson said.
An income tax also is not "rolled back" by Ohio House Bill 920, which does not allow property taxes to grow despite increased valuations in the school district, Mr. Parkinson said.
School district Treasurer Stephanie Swain presented the board with eight scenarios, showing a mix of property taxes and income tax issues to consider.
But Mr. Rear said the board would not consider any option other than one that would provide the district with the money needed to make it through 2014.
School Superitendent Joseph Bergant II encouraged the board to consider the income tax, saying "relying on property tax in the current economy won't get us where we need to be." He added, "The timing dictates this district go in that direction" of the earned-income tax.
Mr. Bergant said, even with the tax request, the schools will continue making cuts in expenses. The district has been making those cuts for the past four years, he said.
Some of the cuts already in place include a high-deductible insurance plan for employees, reduced staffing and the end of cul-de-sac pickups, Mr. Bergant said.
He said a retire-rehire plan for three employees reduced costs by $122,000 a year, and the elimination of two custodians trimmed another $81,000 a year from the budget. He said the district also was able to handle some of the boiler replacement work for a saving of $130,000, and energy conservation efforts have provided savings of 20 percent.
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