vision2020
Re: Moscow school education
Dear Steve and Visionaries,
I am just back from the National League of Cities Congress of Cities annual
meeting in Atlanta, GA, where the constituency group I chaired, the
University Communities Caucus, presented several programs, including one on
the subject of equalization of burden between property tax payers and tax
exempt higher education institutions.
The big problem that most university towns have to deal with is the fact
that the large landowner (and economic engine of the town) is tax exempt and
only in a few states is there any 'in lieu' payment to the local taxing
authority.
Steve is incorrect about Moscow. We DO NOT have in lieu payments from the
State of Idaho on behalf of the University of Idaho. Would that we did!?!
Connecticut has a very generous arrangement if you want to research one
state's response to this! Of course, Connecticut is in a much more favorable
financial position that many of us resource-based states!
What we do have with the University of Idaho as a city and what is a great
asset to both the city and the university, is a realization that we are in
it together and that cooperation is a success strategy that we continue to
develop and improve every year. For example, we have cooperation in police,
fire, and infrastructure [water/sewer/etc.] where the university funds a
piece of the action either with specific contracural agreements or with fees
just as any other citizen would. The university has been a great partner in
such projects as downtown revitalization and the many projects that have
used university resources over the years.
Frankly, the University is, hands down, our greatest asset. I chuckle when
my buddies remind me that without the UI, Moscow would be the gateway to
Troy!
Steve's overall point is well-taken: we cross subsidize a lot and hope that
the mix is right (plus or minus ten per cent, close enough for jazz, etc.).
We do this because, as I said above, we're in it together. We are a
community. Your success helps me. My success helps you. And when it's
failure or bad times, the same thing goes.
And you know??? I like being in it together!
All the best,
Linda
----- Original Message -----
From: "Steve Cooke" <scooke@uidaho.edu>
To: "Vision2020 Listserver List" <vision2020@moscow.com>
Sent: Monday, December 10, 2001 9:19 AM
Subject: Moscow school education
> Dear Visionaries,
> For the record I think my sons Eli and Brice have received excellent
> elementary and secondary educations in the Moscow school district. I asked
> Eli, who is a sophomore at the U. of Michigan this year, if there was any
> deficiency in his high school preparation. He said no. His only complaint
> was about not having enough lab experiences in the sciences (chemistry and
> physics). My only compliant w/ Russell school (now that they have air
> conditioners on the south facing rooms) where both my sons attended
> elementary school is the need for a grass playground. There are some
> excellent teachers in the Moscow school system who are the equal of any in
> the US.
> Regarding cost subsidization of schools between farmers and college
> students though the property taxes. There is a lot of cross subsidization
in
> our economy and the schools are no different. For example, should we
discuss
> the cross-subsidization in agriculture? (see http://www.ewg.org/farm and
> this mornings LMT) Ag & forestlands are taxed at production value rather
> than market value as other property is. Homeowners get a 50% reduction on
> the first $100,000 of valuation. Business inventory is exempt from
property
> taxation. In general we cross subsidize to achieve policy goals that help
> the group as a whole. Any one group can always claim unfairness, but the
> point is to look at the larger picture. Is the system fair in general if
not
> in particular? I believe UI makes payments in lieu of taxes to the city
for
> city services and perhaps the school district as well. If it doesn't it
> should. Renters pay twice the rate of property taxes as homeowners on the
> first $100,000 of valuation. Also, looking only at property taxes in the
> absence of the effect of sale and income taxes is another way to miss the
> forest for the trees.
> On the other hand, I also believe the property tax is unfair in Idaho. The
> problem is not the schools however. The problem is the unwillingness of
the
> legislature to expand the sales tax base to services; to require the
> reporting of land sales; to extend the circuit breaker to low income
> homeowners and renters; and to provide state support for cities in the
form
> of revenue sharing. The special interests in the state have consistently
> blocked these reforms. In fact, they have been successful in rolling back
> the progressive income tax on individuals and businesses in the state. As
a
> result the Idaho tax system is more regressive and does not generate
enough
> revenue to pay for public services including education.
> Finally, to say that Moscow is the highest taxed (rate?) school system in
> the state is the same distinction as being the highest mountain in Kansas.
> Keep in mind that Blaine county (Sun Valley) has a low tax rate and one of
> the highest expenditures per student in the state. They have a very strong
> tax base.
> Steve Cooke
>
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