ATRA in the News: Education Finance
The Goldwater Institute and the Arizona Tax Research Association had been readying for a bid to challenge the constitutionality of the district's levy to help bring schools into racial balance, preparing to argue that it's illegal to levy unlimited property taxes for an unlimited time without voter approval.
Experts say the economic downturn probably made voters think twice about approving many budget overrides... "There have been record job losses, record home foreclosures and apparently they're sending the message that they don't think government ought to be insulated either," said Justin Olson, senior research analyst...
Regardless of one's views on the amount of funding taxpayers provide districts and charter schools, most can agree that double counting results in an inequitable distribution of available resources and inappropriately favors those who game the system.
Kevin McCarthy, president of the Arizona Tax Research Association, called increasing the QTR to address budget deficits “a horrible idea” because Arizona already has high business property taxes and increasing them makes the state less attractive to new and relocating businesses.
Justin Olson, an analyst at the Arizona Tax Research Association, criticized the increased levy. Foreclosures, depressed home values and fewer new homes suggest that property-tax increases will hit harder than in previous years.
"Per unit, if you want to look at it from a purely business perspective, we are efficient," said Justin Olson, a research analyst for the Arizona Tax Research Association. "The school that has the higher student-to-teacher ratio, the school that understands this premise, is probably paying its teachers better and is getting the better, the more sought after, teacher."
The Arizona Tax Research Association, a business-backed lobbyist group, recently reported that districts began the current fiscal year with $329.8 million of money they legally couldn't spend. That's apart from money required for debt service and other legal purposes and obligations, the association said.
The Arizona Tax Research Association and the Goldwater Institute are expected to file a lawsuit soon to fight desegregation funding. Kevin McCarthy, president of ATRA, said unlimited desegregation funding not approved by voters "is in complete violation" of the state constitution.
Kevin McCarthy, president of the tax association, said the system sets up an inherent imbalance by giving the districts with the desegregation levies a funding advantage over others. In the case of TUSD, he said, the district is getting 23 percent more funding than it would otherwise be entitled to collect.