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Sunday, September 26, 2010

Searching for Revenue – Parcel Taxes

The Lowell Joint School District’s recent budget troubles are well documented and without additional revenue to replace the recent cuts imposed by the state, there are some tough choices coming.

One option that has been pursued in the past and should be considered again is a parcel tax.


What is a Parcel Tax?


“Parcel Tax” is the common term for a school district “qualified special tax”. Cities, counties and other districts can also adopt special taxes. Special taxes are permitted by the California constitution, and require approval at an election by at least 2/3 of those voting on the measure. However, there have been recent proposals that would allow California voters to amend the constitution to reduce the required vote to 55% for school district parcel taxes, the same for school bonds.


Have any districts approved Parcel Taxes?


There are 14 parcel tax initiatives on the ballot in California for the November election. There were 32 parcel tax initiatives on the May/June ballot, with 24 receiving the required 2/3 supermajority needed for approval. You can see more information on recent parcel tax proposals here.


The Lowell Joint School District proposed a $95 parcel tax for eight years in 2005 but it failed to reach the required 2/3 supermajority with 53% of the vote. The tax would have generated $900,000 in additional revenue for the district. If that proposal had passed we might not be in such a difficult situation today. You can read a story about the election here.


Recently the Little Lake School District in Santa Fe Springs decided not to place a parcel tax proposal on the November ballot. A recent poll conducted by the district showed support ranging from 58% to 63%. You can read the details here:


Is a Parcel Tax the Best Option?


I think it is safe to say that no one likes to see their taxes raised and in these tough economic times it would be hard to get a parcel tax approved but what are the other options? You can only cut so much before you begin to damage the very thing you are trying to support – the children.


Parcel taxes have been approved in other districts across the state and a well written proposal with a short timeframe and support from the teachers could reach the 2/3 supermajority required for approval. As I have said before in posts on this site, we need to think of new ideas and a parcel tax is something that should be considered.