School board still not united on levy

LIMA -- The debate over property tax verses income tax continued among Lima school board members Monday, although all five agreed to gather additional information about an income tax before making a final decision on a levy next week.

Bobbi McGinnis though refused to approve a motion of necessity in favor of a property tax, sparking a back and forth between McGinnis and fellow board member Marilyn Frueh.

"I am sitting here very disappointed that we can't have a 5-0 vote," Frueh said. "The community needs us to be united on at least the necessity."

"I believe a property tax would be destructive and harmful to our community," McGinnis responded. "We do have a need to promote and create a new tax base."

The board will vote on whether to go to voters in August and with what kind of tax at its May 20 meeting. The board has until May 22 to file with the county board of elections to get on the Aug. 5 ballot.

The options if members decide to go in August is a 6.9 mill property tax, the same rejected in March, that would keep the district out of a deficit until 2012, or 0.75 percent traditional income tax or earned-income taxe that would keep the district out of a deficit until 2011.

McGinnis has voted against putting the last two property tax levies on the ballot, saying it is not fair for property owners to bear the full burden. Other board members expressed their support of a property tax over an income tax, but said to show unity, they agreed to continue to look at all options.

"We tried to give, in hopes that we would be united," C. Ann Miles said to McGinnis.

"Our job is to consider all possibilities, whether we like it or not," board President Sandra Monfort said, later encouraging McGinnis to assist in whichever levy campaign occurs. She has not in the past.

Saul Allen Jr. continued to reiterate that the district needs the funds, saying he would look at any option.

The board called Monday's special meeting to discuss survey results and then a possible levy. Three-hundred randomly selected residents were surveyed by telephone. The survey was paid for through private donations.

The results showed that 66.7 percent believed their neighbors would vote against an income tax. Just fewer than 62 percent said the same regarding a property tax. McGinnis said the board can't discount the people who voted against the property tax the two previous levy attempts.

"This is a study of 300 respondents," she said. "We also have to take in the fact that we had two elections with 12,000 respondents and they have said no twice on property taxes."

Fifty-two percent of voters rejected a five-year, 6.9 mill property tax in March. Sixty-one percent said no to a levy in November. District officials say they need to raise $2.15 million either through a tax levy or additional cuts.

When asked why the last levy failed, 48 percent said because of higher taxes, and 33.3 percent said because of the impact levies have on people with fixed incomes. Only 9.7 percent said they would support a $300 tax increase, 20 percent would support a $200 increase and 63 percent would support a $50 increase.

"We see there is support out there for us, however it is at a very minimal amount," Treasurer Ryan Stechschulte said.

Fifty-seven percent said they believe their personal economic situation would be the same in six months; 26 percent said it would be worse. Board members said they were not too surprised by the survey results.

Monday's resolutions do not mean the district will be on the ballot in August. It could wait until November or even next year. The district does have a renewal levy that will likely be on the November ballot. The survey showed that 62.7 percent would be very likely to support it. Monfort is concerned about trying to put two levies on.

"I don't think November is an option," she said. "It puts the renewal levy at risk."

Before the levy request, the board approved $915,279 in cuts to come next school year if it failed. They include two administrators, 11 teachers, a nurse, three classified staff and six coaches.

The board already made $409,000 in reductions, including six employees, following November's levy failure. Officials said the district faces a $2.7 million deficit in 2010.