Voice of the People

Tax bills have arrived and most people experienced a relatively small increase, some had a large increase and a few had a reduction in their taxes. And like death, taxes are something we all must live with.

However, while many of us have decried the lateness in receiving our tax bills, a large number of people do not realize what that lateness has cost us. As a member of the Duneland School Board, I can tell you what the effect has been on our school system.

In a “normal” year, tax bills would have gone out in the spring and fall, and the tax monies that were collected would have been distributed to the local government entities shortly thereafter. Since that money has not been forthcoming this year, schools and other local governmental entities have had to borrow money to cover their expenses. The Duneland School Corporation has borrowed money two times for 2007 and one time for 2008. This means we have to pay interest on the loans for TAWs (Tax Anticipation Warrants).

To illustrate this in dollars and cents, the school corporation paid $56,195.26 in interest for TAWs in 2005 and $89,160.07 in interest for TAWs in 2006. For 2007 the school corporation owes $467,145.79 in interest for TAWs. However, if no tax revenue is received prior to Dec. 31, the 2007 TAWs will be rolled into 2008 and the interest cost will increase.

This will be an additional cost to taxpayers for an already excessive amount of interest owed. In addition to the excessive interest, other important factors are that we do not know how much tax revenue will be collected for this year and when that revenue will be distributed.

The Board, administration and staff for the Duneland School Corporation continue their efforts to be fiscally responsible while offering students an excellent education. The factors cited previously have certainly impacted student programs and activities, employee wages, salaries and benefits and other operational functions of the school system.

Other local government entities - libraries, towns, etc. - are experiencing the same limitations as a result of not receiving tax dollars and having to borrow money. Thus, the citizens are getting a double whammy - late tax bills plus the loss of funds for education and other government services.

Hopefully, whatever the cause of this year’s fiasco will be remedied in 2008. However, the word which we have received is that 2008 may be just as bad as this year. Maybe it is time to write to our public officials to see that this mess is changed before next year’s tax statements are distributed.

Janice Custer, President

Duneland School Board

Posted 12/28/2007

Posted 12/28/2007