State lawmakers are scheduled to vote tomorrow/today on two plans that would either decrease, or eliminate the statewide property tax.
But critics argue neither plan would provide sufficient funds to public schools.
The plan put forward by House Leadership would lower the statewide property tax 15 percent in 2004.
House Majority Leader David Hess is one of the lead sponsors of the bill.
He says it would save taxpayers even more as time wears on.
As voted out by finance committee, house bill 608 further reduces the statewide property tax over the next four years until it drops to 3.92 cents per thousand in 2009. ..06 149
Under Hess’s projection, the 2009 rate would be 33 percent lower than the current tax rate.
The Hess plan would send 421 million dollars the state raises through the tax to about 200 communities.
Hess says that would be 20 million dollars more in state aid than communities would get if his plan does not get adopted.
But he says he knows his plan won’t please everyone.
07 you don’t eliminate donor towns as a result, but you reduce the number and reduce the amount they have to send into the state. 07 10
The Hess plan is able to increase aid and reduce tax rates because property values have risen considerably.
In essence, the Hess plan could leave taxpayers paying the same amount as of money as they do now.
The second plan that lawmakers are scheduled to consider was produced by a group called “Coalition Communities Seeking Fair Funding for Education”.
The coalition is made up of 34 so called, “donor towns”.
Those are communities that raise more in statewide property taxes than they use for education.
The Coalition plan would totally eliminate the statewide property tax.
But it would use 415 million from other taxes to pay for education.
Ted Jankowski is the director of the coalition.
He argues that eliminating the statewide property tax is the best way to get rid of an unfair system.
the current system is very unstable and unpredictable. You don’t know what you’re going to be getting two years down the road. Under the current system, 60 percent of all communities in this coming fiscal year will be losing funds, losing revenues, or becoming donors, on the basis of the current system. 14 112
The House Finance Committee has recommended that the full House pass the Hess plan for at least two years, in 2004 and 2005.
Leaders say the coalition plan could be adopted for implementation beginning in 2006.
They want to put off passing the Coalition Plan because they’re not sure if it would prove constitutional.
Lawmakers worry that by eliminating the statewide property tax, the Coalition plan rubs out the state’s only education tax that is paid by everyone.
Neither plan has the support of Democrats in the House.
Representative Mary Jane Wallner is the highest-ranking Democrat on the Finance Committee.
Wallner and the Democrats are backing a plan put forward by Concord Republican Liz Hager.
That proposal claims it would raise more than 480 million dollars.
Wallner calls the Hess plan irresponsible, because it would raise 60 million dollars less than the Hager plan.
19 124 …It doesn’t mean that schools are going to cost less. It just means that the state share of running schools will be less. They will receive less from the state for the operation of their schools. And that will probably mean in many communities, the local property tax will go up.
Proponents of the Hess and Coalition plans say each one would raise enough money to target aid to the most needy communities.
And the Hess plan would limit spending increases to the level of inflation.
Opponents point out, however, that education costs in the past few years have risen faster than inflation.
Sponsors of both GOP plans have held several meetings with lawmakers in the last few days.
The activity indicates that proponents of the plans are still trying to build needed majorities, right up until the last minute.
