The Easy Way Out

While Williamson County has the lowest property tax rate in middle Tennessee and the lowest of any county with a population over 100,000, County Commissioners and the County Mayor are now pushing a sales tax increase scheme that will ultimately rest with local voters.

All of this comes about because the Williamson County Commission continues to exhibit a preference for low taxes and lattes over investment in schools.

Here’s more from the Tennessean on the sales tax effort:

Pushing for an increase in the county’s sales tax to help fund future school projects was a cornerstone of Williamson County Mayor Rogers Anderson’s 15th annual State of the County Address.

The final passage of the proposed 25-cent sales tax increase would be left up to residents in a county-wide referendum, but Anderson has been visiting the county’s six municipalities over the past several weeks in efforts to convince cities to agree to an inter-local agreement that would allocate a portion of new revenue to cover debt service for schools.

“The school system could see an additional $60 million by the arrangements we’re working on for three years,” Anderson said.

All of that sounds great — until you realize this is the most regressive way to raise revenue. Oh, and it has to be approved by voters.

I saw this scenario play out in Sumner County in 2012. County Commissioners faced pressure to raise revenue for a school system growing rapidly. The Commission could not pass a property tax increase. Instead, they put a wheel tax increase on the ballot — twice. It failed both times.

After the wheel tax increase failed twice, County Commissioners ran around saying voters didn’t want a tax increase at all, not even a property tax increase. So, the school budget would have to be cut.

Here’s how this movie ended: Voters turned out in record numbers in 2014 in Sumner County to elect new County Commissioners. The new commissioners promised to explore every option to raise revenue for a county that hadn’t seen a property tax increase in 12 years.

A property tax increase was passed that allowed Sumner County to invest in schools and other needs while still maintaining the second-lowest property tax rate in middle Tennessee. The school system now has a budget that is funded by the revenue generated from a growing county with a low tax rate.

Williamson County is in an even more enviable position than Sumner. Williamson has the lowest tax rate in middle Tennessee — by 35 cents. Each one penny increase in the property tax generates $1 million in revenue. A 10-cent property tax increase would generate $10 million — more than enough to fund this year’s budget request — and would still give Williamson the lowest tax rate in the region by 25 cents.

What Mayor Anderson is pitching now may sound like good news. It’s not a long-term solution, though. Even if it somehow passed, the sales tax increase and inter-local agreement scheme is just kicking the can down the road.

Here’s the alternative (best) option: Raise property taxes a modest amount — maintain your system’s reputation for excellent schools AND enjoy the lowest property tax rate in the Nashville region.

For more on education politics and policy in Tennessee, follow @TNEdReport


 

 

Budget Day in Williamson County

From a post on the Williamson Strong Facebook page:

Today’s the big day! The County Commission will spend the whole day discussing and voting on “approximately 50 resolutions concerning the county budget, including a total county general budget proposal of $557 million, a school budget of $337 million, various capital projects and over 20 new positions in county government.”

In advance of today’s meeting, the WCSB cut the proposed 2017-18 WCS budget by $6 million “eliminating multiple proposed instructional positions, including counselors, special education support staff and proposed central office positions.” With the cut eliminating the need for a tax increase this year, the school budget should be approved with little debate.

“Looney explained that if the school district is forced to cut its budget again in other areas next year, and beyond, to avoid a tax increase, with no incoming revenue, the school district will be unable to maintain its current high level of service.”

You might think from reading this that Williamson County is struggling financially. Or that they lack the fiscal capacity to maintain a high level of school services. But, the reality is they simply have a County Commission that prefers lattes to tax increases.

As I noted previously:

So, the School Board passed budget cuts of $6 million this week. The alternative would have been for the County Commission to raise property taxes by six cents. That would cost a taxpayer with a $400,000 home $60 a year. Or, one Starbucks drink a month.

While this may not be a huge setback this year, it’s unsustainable in a district growing as rapidly as Williamson County. At some point, the level of service provided to students will noticeably suffer. Until then, have another Caramel Macchiato.

Director of Schools Mike Looney echoed that sentiment when he noted that if this type of budgeting continues, Williamson County will no longer be able to provide the high level of service students and families have come to appreciate and expect.

While no one likes higher taxes, Williamson’s are comparatively low:

Here’s what’s interesting: A property tax increase of 6 cents would basically cover the projected shortfall. Williamson County has the lowest property tax rate in Middle Tennessee. It’s 35 cents lower than the second-lowest, which is Sumner County. A 6 cent increase would mean Williamson’s tax rate would still be the lowest, and still be 29 cents lower than Sumner. It would cost a taxpayer with a home valued at $400,000 roughly $60 a year.

Also low: Williamson County’s spending relative to top performing counties. In other words, Williamson County Schools is getting the maximum bang for taxpayer bucks:

Of the top 10 districts in terms of academic performance (measured by ACT/TCAP), WCS has the lowest per pupil expenditure. WCS spends only $8,945 per student – $1,790 less than the average PPE of the top 10 districts.

In spite of all the evidence and data, and the enviable position of being a high-performing school district with relatively low investment per student and the lowest tax rate in middle Tennessee, Williamson County is set to start down a path that could result in losing ground. It may not be noticed in the 2017-18 school year, but as Looney notes, if the trend continues, there will be a loss of services.

How long will Williamson County Commissioners hold on to the myth that you can have excellent schools without maintaining your investment in them?

For more on education politics and policy in Tennessee, follow @TNEdReport


 

The Curious Case of Williamson County

Williamson Strong has more on the evolving situation in Williamson County where a County Commission reluctant to raise revenue is forcing the School Board to make budget cuts.

Using information on spending relative to peer districts, Williamson Strong notes there’s no spending problem in Williamson County, and in fact, Williamson spends significantly less than other top districts and even has lower per pupil expenditures than the state average:

Of the top 10 districts in terms of academic performance (measured by ACT/TCAP), WCS has the lowest per pupil expenditure. WCS spends only $8,945 per student – $1,790 less than the average PPE of the top 10 districts.

For reference, Franklin Special School District, the K-8 district that sits in the heart of Williamson County, spends $13,386 per student – almost 50% more per child than WCS. WCS also spends below the state average – $554 per student less than Tennessee’s average $9,499. Keep in mind that Tennessee is typically in the bottom ten states for per pupil expenditures. (See former School Board member Eric Welch’s graphs for comparison to state and national figures as well as to area private school tuitions.)

Additionally, WCS’ average teacher pay of $49,934 is $3,729 below the average of the top 10 districts in the state. Williamson’s spending on salaries is not out of control, and in fact, is less than peer districts. Again, for comparison, FSSD’s average teacher salary is $55,305.

So, the School Board passed budget cuts of $6 million this week. The alternative would have been for the County Commission to raise property taxes by six cents. That would cost a taxpayer with a $400,000 home $60 a year. Or, one Starbucks drink a month.

While this may not be a huge setback this year, it’s unsustainable in a district growing as rapidly as Williamson County. At some point, the level of service provided to students will noticeably suffer. Until then, have another Caramel Macchiato.

For more on education politics and policy in Tennessee, follow @TNEdReport


 

Too Rich to Pay

I reported earlier on the struggles Williamson County is facing in properly funding schools. As budget crunch time approaches, it seems the County Commission there is unlikely to approve a small property tax increase in  order to fund the school system’s budget request.

The Williamson Herald reports:

The Williamson County Board of Education participated in a tough discussion Thursday, regarding the necessity of cutting key new staff positions and services in order to fulfill the Williamson County Commission Budget Committee’s request to cut the school budget by $5 million.

The CCBC voted 4-1 earlier this spring to cut the school district’s budget in order to avoid a county property tax increase.

However, WCS Director of Schools Mike Looney said that in order to avoid a tax increase, an additional $1 million reduction is needed, totaling a $6 million decrease in the school board’s proposed operational budget, resulting in a reduction from $343 million to $337 million.

The story notes that the school system will cut nearly $2 million worth of new positions and services and make cuts to employee insurance to cover the rest of the shortfall.

Here’s what’s interesting: A property tax increase of 6 cents would basically cover the projected shortfall. Williamson County has the lowest property tax rate in Middle Tennessee. It’s 35 cents lower than the second-lowest, which is Sumner County. A 6 cent increase would mean Williamson’s tax rate would still be the lowest, and still be 29 cents lower than Sumner. It would cost a taxpayer with a home valued at $400,000 roughly $60 a year.

Williamson County is the wealthiest county in Tennessee. The school system there has always been a source of pride. Now, County Commissioners are quibbling over a few million dollars in order to avoid a tiny tax increase. The message: We can do great things for kids as long as we don’t have to pay more. Keeping taxes 35 cents lower than the next lowest county is more important than fully funding a budget request designed to improve services to a rapidly growing district.

Williamson County can afford to fully fund this proposed budget for schools. They can do it and still have the lowest tax rate in Middle Tennessee by nearly 30 cents. So far, it looks as if they aren’t willing to make that commitment.

For more on education politics and policy in Tennessee, follow @TNEdReport