Prospect of taxing school purchases bothers local officials
Published 12:00 am Thursday, January 17, 2002
Spending cuts for schools proposed by Gov.
Thursday, January 17, 2002
Spending cuts for schools proposed by Gov. Jesse Ventura would be spread unevenly in Freeborn County, but of more concern to many local school officials is the proposal to make school districts pay sales taxes on purchases.
&uot;Basically it’s a big shell game,&uot; said State Sen. Grace Schwab, R-Albert Lea. She points out that even though the governor claims the general fund is not being cut, money from the general fund will have to pay for the sales tax and increases in special education costs, another proposed cut in the governor’s plan.
Others are not quite so bold in their criticism of the governor’s proposals, but the concern is common and no one is pleased. Some are uncertain of the full impact of the cuts, and are wondering where figures the governor’s plan relies on came from.
&uot;I have no idea where the numbers are coming from -&160;I have no information about how they arrived at their figures,&uot; said Joe Guanella, Finance Director at the Alden-Conger school district. He’s wondering especially about the fairness of the potential 3.2 percent, or $81,000, cut Alden-Conger seems to be facing, especially when other districts in the area face substantially smaller cuts.
&uot;I’m still trying to check with state officials about the details on this,&uot; he said.
At the Glenville-Emmons School District, Superintendent Todd Chessmore sees any cuts as an addition to what would already be undertaken due to declining enrollment. He’s not looking forward to cutting even more, but with enrollment declines, they would have had to cut back anyway. Under the proposals, the impact of cuts at Glenville-Emmons wouldn’t be too significant the first year, at $7,000, but would become more so in the second year.
For some districts, even small cuts, coming on the back of previous cuts or less than anticipated state aid, will mean cuts to programs, and not just extras.
&uot;What was promised already wasn’t enough. If they want to take any more from us now, it will hurt what we can do for kids. Cutting programs will be the result,&uot; said Frank Lorentz, district superintendent at United South Central Schools.
Superintendent Richard Lorenz, at NRHEG schools agrees.
&uot;Any substantive reductions will impact what we do,&uot; he said.
But he also points out the need to remember that these cut are still just proposals, and he even thinks Ventura should be complimented for making them. The next step is for the legislature to make their decisions, he said.
Superintendent David Prescott, of the Albert Lea Area School District has concerns about the sales-tax issue.
&uot;It doesn’t appear that there is any accounting for the sales tax on district purchases. When we look at paying sales tax on all the stuff we buy, it gets to be a lot of money,&uot; he said. The estimated cost to Albert Lea public schools would be $100,000. That money would have to come from the general fund, and therefore wouldn’t be available for other things, he said.
One person who has found reasons to be both hopeful and concerned is Mark Stotts, director of finance and operations for Albert Lea Schools.
&uot;I’m pleasantly surprised that it isn’t a little more significant, since we make up such a large part of the state’s budget. I was expecting the governor to take more,&uot; Stotts said. His estimate for district 241 is about $84,000 more in cuts for next year if the proposals are approved. However, Stotts is more than a little concerned about other issues.
&uot;The bottom line is that now schools will be paying sales taxes, shifting funds from school districts to the state,&uot; said Stotts. And he wondered why officials can’t just make a direct cut to state aid instead.
Stotts said he isn’t really in the mood for more cuts, but he is worried that without a visible and straightforward cut to schools, people will forget about the sales tax and special education costs, since they aren’t obvious.
&uot;The fear is that politicians and others will look at school funding and say ‘See, the general fund hasn’t been cut’ leaving schools exposed to even more reductions in the future,&uot; he said