October 25, 2007
Click here to view and here to listen to Terry Stoops discussing this Regional Brief.
RALEIGH – Macon County is asking voters next week to approve $42 million in school construction bonds and increase an already high tax burden on low- and middle-income homeowners. That’s the key finding in a new John Locke Foundation Regional Brief.
“A successful vote would force taxpayers to shoulder the tax increases associated with the bond,” said report author Terry Stoops, JLF Education Policy Analyst. “That would intensify a tax burden that is quickly becoming unbearable for many people living in Macon County.”
Macon has failed to adopt changes that could help the county avoid additional taxes and long-term debt, Stoops said. “The local government has failed to implement the full range of school facilities alternatives and strategies that could accommodate enrollment growth without digging deeper into taxpayers’ pockets.”
Macon and any growing school system should adopt a long-term capital plan that focuses on priorities, Stoops said. “The county should redirect funds away from low-priority county initiatives and school programs to pay for critical construction and renovation projects,” he said. “The capital plan should fund only those projects that directly increase capacity in high-growth areas.
“The plan also should employ strategies that reduce construction and renovation costs,” Stoops added. “Savings from reducing the size of county and school bureaucracies should pay for school facilities. Macon should use existing revenue streams, rather than debt, to pay for capital expenditures. And the county should exhaust all possible school facilities alternatives.”
Macon County taxpayers already face one of the state’s highest tax burdens, Stoops said. “Macon has one of North Carolina’s lowest property tax rates, but that doesn’t tell the whole story,” he said. “Factor in local incomes, and Macon has the state’s sixth-highest property tax burden. Macon ranks among the top 20 counties in local tax burden by any measure.”
Local governments call on their taxpayers to cover nearly 80 percent of the cost of school building expenses in North Carolina, Stoops said. “Voters across North Carolina have approved 74 school bond packages worth nearly $7.3 billion since 1995, but they’ve also rejected 20 bond proposals totaling nearly $2 billion.”
The state also provides four sources of school facilities funding, he said. Macon is projected to get $1.8 million for school facilities in 2007-2008 through the corporate income tax, state lottery, and local-option sales taxes.
Options such as charter schools, early college high school programs, ninth-grade centers, virtual schools, satellite campuses, public-private partnerships, and adaptive reuse could help Macon save taxpayers from unnecessary expenses linked to enrollment growth, Stoops said. “These proven, cost-efficient solutions enhance educational opportunities for students and lighten the burden for county taxpayers.”
Macon County should rethink its strategy for addressing local school building needs, Stoops said. “The county must pursue a comprehensive school facilities strategy that is friendly to taxpayers and school officials alike.”
Terry Stoops’ Regional Brief, “Bond, School Bonds: School Bonds will leave taxpayers shaken down, not stirred,” is available at the JLF web site. For more information, please contact Stoops at (919) 828-3876 or [email protected]. To arrange an interview, contact Mitch Kokai at (919) 306-8736 or [email protected].