School Funding and the Wind
In ads placed recently in local newspapers, the Friends of Scenic Columbia County have pointed out that funding provided by the state of Washington to the Dayton School District dropped in 2007 because of the increased property tax base created mostly by the Hopkins Ridge Wind Project. The group is using that fact as an argument against further development of wind projects in Columbia County.
Here's a bullet point from an ad that ran in the October issue of Blue Mountain News: "The school district has lost revenue. Their recourse is to cut programs and staff, or increase levy requests." The ad, of course, failed to mention that most other public entities in the county have experienced dramatic increases in funding as a result of the new wind project and that homeowners here have seen significant reductions in property tax levy rates.
The "Friends" are correct about the school funding reduction. The district's funds from the state decreased this year by roughly $40,000. This is the curious result of the dramatic increase in assessed property values within the district's boundaries. This increase was due primarily to the added value of the Hopkins Ridge Wind Project, which the "Friends" opposed.
We asked Dayton School Superintendent Rich Stewart to explain why the funding reduction occurred. He told us that it happened through a process called "levy equalization". Here's how it works:
The portion of property taxes collected by counties in Washington through "regular levies" for schools always goes to the state. The state is required to apportion these funds back out to school districts in such a way that all students in the state get an equal level of funding. Because of this process, school districts with low overall property values relative to their school populations get a high proportion of levy equalization funds. Conversely, there are a few wealthy school districts in the state that receive no levy equalization funds at all. As property values increase and equalization funding decreases, school districts are able to ask local voters for increased funding through "special levies".
So because the overall value of property within the Dayton School District increased substantially in 2007, the amount of levy equalization funding received by the district was reduced. However in the future, the district can ask voters for "special levy" funding. And even if a special levy were approved, combined levy rates in the district would still undoubtedly be lower than they were before the wind projects.
Superintendent Stewart told us that the school district knew well in advance that the funding reduction would be coming and budgeted for it. He also told us that he is a strong proponent of economic development and that he would prefer to see the school district be part of an economically strong community, even if the result is higher property values and thus reduced levy equalization funding.
It is a fact that dramatic economic growth in Columbia County, of any kind, will result in reduced levy equalization funding for local schools. This is an important part of fairness in public school funding. By using the reduction of levy equalization funding as an argument against further wind energy development in the county, the Friends of Scenic Columbia County are implying that it would be better for our area to remain poorer, so that the local schools can get a higher level of this funding. We don't agree.
Copyright (c) 2007, Blue Mountain News