Scottsdale homeowners and businesses could face higher property taxes under Gov. Janet Napolitano's proposed budget, despite the governor's insistence that she will not solve Arizona's budget crisis by raising taxes.

Her plan calls for changing how the qualifying tax rate is allocated in school districts — a move that would, in effect, shift the burden for funding schools in the state's wealthiest districts from the state budget to local taxpayers.

The governor's budget says the change would save Arizona's general fund $12.7 million. Nearly all of the savings would come at the expense of the Scottsdale Unified School District.

“This is a targeted tax increase on Scottsdale,” said Michael Hunter, vice president of the Arizona Tax Research Association. “It should not be called anything else.”

On Thursday, Kris Mayes, the governor's spokeswoman, confirmed the proposed change would result in a tax increase for Scottsdale taxpayers if the district “chooses to recoup” the loss of state aid.

“First and foremost, it's an equity issue,” Mayes said.

The qualifying tax rate is a statutory property tax rate used to calculate the amount of basic state aid a district receives. It's supposed to offset property wealth and cost differences to equalize education spending and taxing in the state's public schools.

Currently, the rate is split 50-50 between kindergarten through eighth grade and grades nine through 12.

Napolitano said that results in some districts being overpaid in basic state aid, while others are underpaid because Arizona has more elementary students than high school students. She wants to realign that to better reflect the distribution of students, which is 70 percent elementary and 30 percent high school.

When that change is made and the districts' property wealth is taken into account, it results in little, if any, state aid for Scottsdale schools — leaving local taxpayers to pick up the tab.

Carol Hughes, spokeswoman for the Scottsdale district, said district officials had not yet seen the details of Napolitano's budget and it would be too early to say if the district would try to recover lost state aid through a tax hike.

“We don't want to jump to conclusions,” she said. “But based on what we know about the funding formula, realizing there would be a shift . . . to us, that sounds like a tax increase.”

It's a plan that has been proposed before at the state Legislature.

“I've opposed that in the past and I'll oppose that again,” said Sen. Carolyn Allen, R-Scottsdale. “We're not supposed to be getting a tax increase, but this will raise taxes in my district . . . I cannot with a clear conscience support something that picks on our people because they're more affluent.”

Mayes said that because of the way the funding formula is structured, districts such as Scottsdale, “have benefited disproportionately from the state equalization formula and the (qualifying tax rate). By shifting to 70-30, we are addressing an equity issue.”

Napolitano's proposal, however, comes at a time when the Scottsdale district already is financially strapped.

After voters defeated a budget override in 2001, the district was forced to cut about $3 million from its budget — and may have to make more cuts if a $10 million override is not approved by voters in March.

Marilynn Atkinson, owner of Atkinson's Trading Post in downtown Scottsdale, said small businesses such as hers already are paying high taxes.

“It isn't that we don't support the school system, but we also, especially in these economic times, have to look at what we're spending,” she said. “I would need to see how much we would have to pay, but this could have a severe impact.”