Folks were mislead on SILO tax proposal

The Cedar Rapids Gazette was liberally pleased to report yesterday that Johnson and Linn County have collected $48 million for schools.  The amount of money reported was collected with the local option sales tax (SILO) that went into effect in July 2007.

During the height of the campaign season for that tax hike issue, some proponents made the argument that folks could afford the extra $30 or so annually the additional tax would cost them.  After all, it would be good for the schools and $30 or so a year isn't too much to ask, it's for the kids.....yada, yada, yada, emotional appeal stuff right?  Many folks bought that line and voted for the tax. 

So how much has this tax hike really cost people?  The reported $48 million that has been generated, comes from the pockets, wallets, and purses of residents from Johnson and Linn counties when they shop.  People from outside of Johnson and Linn pay the tax as well when they shop here.  That being stated and understanding that folks residing outside of Johnson and Linn counties *contribute* to our area schools (taxation without representation), Johnson County has generated $17.622 million, and Linn County has generated $30.297 with the school tax.  Divide respective county populations into tax receipts, Johnson County's 118,038 and Linn's 201,853 and that's about $149 per resident.  And again, understanding that people living outside Johnson County and Linn County contribute to the tax plan, it is clear that the pro-tax argument of, "It will only cost you about $30 annually" was a very false one. People from outside these counties are NOT contributing the entire remaining balance of that $149 per. 

The "It will only cost you about $30 a year" argument was completely bogus.  There's no data to back such a figure up.  How do we know that?  Because the checkout people in each and every store, punching the keys at the register aren't asking everyone where they're from and writing it down.  And the small number of stores that are collecting something like zip code data, are doing so for marketing reasons, they're not sharing that data with the state.  So what we have here are some tax proponents who made up a figure and intentionally low-balled the *estimated* out of pocket figure for the sake of tax hike passage.  The argument could be made that some people just flat out lied in trying to convince others that this tax would be a *good* tax.  Were pro-SILO folks tied to the schools so hell bent and selfish in seeking passage, that they willfully shoved the truth aside?  How *good* is a tax if it's based in lies?  Snake oil anyone?

Oh, and never mind that for the Iowa City Community School District, this sales tax wasn't really needed.  It was a sheer want.  The ICCSD has had all the cash it needs to successfully turn out good students since 1994.  What's not known by many folks is that Superintendent Plugge spends far too much money on administration, and not nearly enough on student education.  That's why he keeps asking for more of your money - for administrative pipe dreams and to cover his butt in other areas.  With passage of the SILO, Plugge now has his feet propped up on his desk because he's rolling in your dough, and people still aren't onto him about how bad he really is with your money.

Do you know where your money is going?  And here's another pleasant thought.....  During the campaign season, proponents predicted the tax hike would generate about $108 million over a ten year period.  Gee, another one of those arbitrary *estimates*, imagine that.  Well, in just its first year, Johnson County collected $17.622 million, far exceeding expectations.  Who are these bean counters Plugge relies on anyway?  Are they the same folks he undercounts student populations with every year?  So with the tax exceeding expectations (bad economy huh liberals?), does that mean the tax will be shut off early when budget expectations are met?  If that predicted $108 mark is achieved in say six years, do you think Lane Plugge, out of the goodness of his heart, will say, "I propose that we rescind the tax."  Heck no!  You're stuck, Plugge will gladly take more of your money even though he doesn't really need it and rest assured, before that ten year mark hits, the campaign to keep that tax going will be well under way.  Keep in mind that the $108 million figure was used in campaigning.  That mark was used for budgeting and project proposals, and a time frame was established.  Voters voted yes or no based on that data. 

Make no mistake, the proposed SILO was nothing more than a money grab, and quite frankly a repulsive one. The ICCSD is now fat, never mind that property tax growth in the area has outpaced student population growth.  Simply put, that means the SILO truly wasn't necessary.  There was and is plenty of money available in pre-SILO existing sources for our children's education (as opposed to the school board's wish list of 'nice things to have'), and those sources are growing, along with the SILO. The property tax base in Tiffin is growing, Solon is growing, North Liberty is growing.  School Superintendents should be challenged on their money management, not given blank checks simply because and when they ask for it.

Folks were mislead on the SILO tax proposal.  School districts in Johnson County truly didn't and now most certainly don't need additional funding.  But we're stuck for another 8+ years with a tax that cannot be repealed.  School districts need to spend the millions they have already been given, responsibly.  Don't give somebody like Superintendent Plugge, another blank check. 

Comments

[Craig Rairdin]

Any community stupid enough to vote to increase its own taxes deserves to reap the results of whatever lies were told to it. I tried to make the case in Linn County and spent several thousand of my own dollars to try to save my fellow citizens millions of theirs, but I was met with silence. At least we can rest assured that the Linn and Johnson county school districts won't have to ask for any additional taxes for the next ten years, right?

Craig Rairdin
Chairman
Stop the Local Option Tax
Cedar Rapids