School Board boosting half-cent tax
KONK LIFE STAFF WRITER
Less than a month ahead of the Nov. 4 general election, the Monroe County School Board is poised to kick into high gear a campaign in support of a four-year, half-cent sales tax referendum that would raise $15 million per year for capital improvements.
If re-authorized by a majority of voters, the half-cent sales tax would go into effect again Jan. 1, 2016, and be levied for a decade. A decade of the projected levy amounts to an estimated $157,300,000 in revenue by 2026.
School Board Chairman Emeritus Andy Griffiths, the long-time District 2 rep, told Konk Life he is spreading the message via a full schedule of meetings with school-based parent association and civic organizations throughout the Florida Keys.
His primary message is simple: “A sales tax is preferable to a property tax. We should export this tax to our visitors. The local tax burden is less.”
Based on figures provided by Griffiths, the half-cent levy that’s currently in place has raised some $250 million. He said that about 52 percent of sales tax collected in the county is paid by tourists. Doing the math, tourists have shouldered $125 million in capital costs.
Griffiths said that money has been used to fund reconstruction of Coral Shores High School, Key West High School, Marathon Middle/High School, Poinciana Elementary School and other improvements.
In addition to actual brick and mortar projects, the sales tax money could statutorily be used for technology upgrades and school security measures.
Looking ahead, Griffiths said the district, with the exception of debt related to the $38 million reconstruction of Horace O’Bryant Middle School, the School District will be debt free in October 2015.
He’s referring to debt related to construction of the high schools and other projects in the same time frame.
“Currently, the half penny helps pay the mortgage on our school replacement program. Our school replacement program is almost complete.”
Griffiths said once the old debt is retired, the district can tap the half-cent money to rebuild the three schools given priority: Gerald Adams Elementary School on Stock Island, Stanley Switlik Elementary School in Marathon and Plantation Key School.
“Once debt free, the continuing revenue stream can pay for three new schools, new technologies, security infrastructure and remodeling and improvements of existing schools,” Griffiths said.
The referendum questions reads: “The School District’s capital improvement plan is ongoing. Additional funding is required to upgrade and address security needs at school facilities, equip schools with modern technology, construct new facilities, provide for renovations and additions to existing school structures and other permitted capital improvements. Shall the School Board of Monroe County, Florida continue to levy a one-half cent sales tax for a period of ten (10) years beginning January 1, 2016?”
Although there’s no organized opposition to the referendum, if the measure fails the School Board could recoup the lost revenue by raising the countywide property tax rate.
The board has already locked in a tax rate for the 2014-15 fiscal year.
Griffiths explained that the current capital property rate is 50 cents per $1,000 of assessed home value. In order to raise the $15 million projected to come from the sales tax, the capital property millage would have to be $1.20 per $1,000 of assessed home value.
“A simple majority vote of the School Board is all that is required,” Griffiths said. “We are able to continue this low tax rate because the half penny sales tax subsidizes that required property tax income.”
The district estimates reconstruction of the three schools to cost $105 million. Renovations and improvements to other district schools is slated to cost $25.5 million.
Technology improvements, including network and bandwidth upgrades as well as classroom devices, could cost $21.8 million. Security improvements for schools and buses is set to cost $5 million.
For more information on the half-cent renewal, visit keysschools.com.
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