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1. Association Tobacco Tax Predictions Come True

2. My Corner: Recreating Florida’s Education Miracle

3. Save Our Secret Ballot: Protecting Your Right To A Secret Ballot

4. Can Privatization Help Utah Balance the Budget?

5. Corroon Proposes Sales Tax Increase

6. Truth In Taxation Hearings: Government Pushing Their Pain On Taxpayers

Taxpayers Association’s Tobacco Tax Predictions Come True

Your Utah Taxpayers Association warned the 2010 Utah Legislature that an increased tobacco tax would lead to decreased revenue for the state and local businesses. Tobacco users would reduce their purchases or make their purchases out of state and Utah businesses would suffer. Less than two months after the increased tobacco tax went into effect, Taxpayer Association predictions are coming true.

- February 2010: Utah Taxpayers Association Opposition to Increased Tobacco Taxes (HB 196)

- February 2010: Utah Taxpayers Association Opposition to Increased Tobacco Taxes (SB 40)

- SL Tribune: Tax Hike Leads To Smoke Sales Plunge

Los Angeles School District $640 Million Budget Shortfall; Builds $578 Million “Taj Mahal”

In the last two years, the Los Angeles School District has laid off 3,000 teachers, currently has a budget shortfall of $640 million and has a drop out rate of 50%. They also have recently opened the most expensive public school in the country, costing taxpayers $578 million.

- Associated Press: LA Unveils $578 Million School, Costliest In The Nation

Utah’s Example: How States Can Respond To Obamacare

A recent Heritage Foundation report praised Utah for its innovative healthcare solutions. The report encourages other states to follow Utah’s lead by, “implementing customized state-level reforms aimed at empowering consumers rather than federal bureaucrats.”

- Heritage Foundation Report: Utah’s Example- How States Can Respond To Obamacare

Former Governor Jeb Bush Shares Strategies To Improve Utah Schools

Former Florida Governor Jeb Bush spoke with Utah legislators about innovative education policies that boosted Florida from 29th to 6th in the nation’s education report card, the National Assessment of Education Programs. Representative Greg Hughes and Senator Wayne Niederhauser are drafting similar legislation for the 2011 legislative session.

- Deseret News: Jeb Bush Tells Educators How To Improve Schools

Proposals To Privatize State Parks

The Privatization and Policy Board, an advisory panel to the Utah Legislature, has proposed a pilot project to see how private companies would manage several Utah state parks. Utah currently manages 43 parks, reservoirs, museums and golf courses. Utah Taxpayers Association President Howard Stephenson serves as a member on the Privatization and Policy Board.

- SL Tribune: State Explores Private Management of State Parks

Members of the public attending a school district truth-in-taxation hearing were anything but passive Tuesday night. But after all was said and done, the tax hike levied was less than two-thirds of what had originally been proposed.

The two-hour plus meeting was peppered with boos, outbursts against President Obama and taking federal tax money, insinuation that administrators are paid too much and their numbers should be cut.

One of the dozens of speakers who addressed the board of education claimed principals do little more than look out the window and clean up messes on the floor, while another man added a need to discontinue any teaching of evolution.

Another speaker derided the district, claiming it is starting a Planned Parenthood-sponsored maturation program.

A couple of hundred people squeezed into the Davis School District administration building auditorium, with one wall even lined with people who had to stand.

In the end, the board unanimously passed two parts of a proposed tax hike, saying even before the public comment period it would not have to impose two others.

The property tax bill on a home assessed at a $200,000 value will have just over $60 a year added to its tax bill, about 37 percent less than the $95 originally proposed.

“Why can’t we learn to save money?” asked retired educator and police officer Frank Cline of Bountiful.

“I get about $50,000 a year to support three people, and my (home) assessment has gone from $89,000 to $184,000,” meaning the school tax bill has jumped from $280 to $667.

“The district should look at making cuts like I need to,” he said, asking why the new Syracuse High School had to cost $50 million. “Why can’t we learn to save money?” he asked.

“Our bill is $300 more for the school district than last year,” said Joyce Winters, adding, “We can’t do it (pay it).”

“We’re just coming out of a two-year recession,” another speaker said, with audience members shouting that “we’re not coming out of it!”

Layton resident Doug Bundy blamed the financial problems hitting everyone on “the bankers and derivatives.”

“You need to work on your budgeting skills. If you can’t can’t afford it, don’t buy it,” said Lamont Class of West Point, adding that migrant worker-related help for children and education for illegal immigrants should be stopped.

Others felt there were different issues that needed to be addressed.

“Decrease administration by 30 percent, cut the bureaucracy. Teachers should teach, not be babysitters,” said Bountiful resident Dean Fordham.

There were several teachers and other educators who spoke in support of more funding.

Among their arguments were that salaries hadn’t been increased for two years, two instructional and two professional (preparation) days had been cut which meant a loss in pay, and that there isn’t sufficient funds for adequate classroom supplies.

They also spoke about the harm larger class sizes create in lessening the opportunity for regular one-on-one teaching situations, particularly in elementary schools.

“We must renew our commitment to adequate public schools,” said Susan Firmage, president of the Davis Education Association (a teachers’ union).

Others focused on the impact of taxes on residents.

“The Utah Taxpayers Association is still in opposition to the two (tax) proposals,” said Jacki Evans, a research analyst with the private, business-backed tax watchdog group.

She said business has to get along with less money, as do community members. “Others find ways to cut. You should do the same.”

“We have cut over $60 million in the last two years, 20 percent from the district office,” said board member Barbara Smith.

“We just let go of 20-year-old buses. The cuts that we’ve taken in the last two years have been with very heavy hearts.”

“We’re getting 1,000 new students a year,” said board member Jim Clark. “Growth is not funded. If there’s $10 million (in government funds available), I’m going to take it.

“We don’t have any choice but to fund No Child Left Behind. There are a lot of things we have no control over,” he said. “I’m self-employed. I’m not making the money I was before. But we have a lot of kids. We’re balancing the budget on the backs of teachers.”

School taxes in Davis County will go up next year — but not as much as expected.

Following a lively public hearing with more than 150 taxpayers, the Davis School District Board of Education pared down a proposed tax hike from $95 to $60 a year on a $200,000 home. The increase will generate $8 million a year for schools, helping to plug a $31 million shortfall for the upcoming school year.

“We’re hurting,” said Farmington resident Peter Cannon. “The economy is killing us and we cannot pay what you’re asking.”

More than three dozen people — most opposed to the tax hike, in any amount — spoke at the two-hour hearing. Comments were punctuated by bursts of applause and catcalls from the audience. Board President Marian Storey had to remind attendees, who frequently interrupted board members, to “be civil.”

“The response you’re seeing tonight is extraordinary,” said Jacki Evans of the Utah Taxpayers Association, noting she had attended a number of such hearings. “You shouldn’t be pushing your pain onto the taxpayers so you can balance your budget.”

Several teachers and support staffers spoke in favor of the boost. Davis district made $24 million in cuts, such as boosting class sizes by one pupil and shortening the school year by two days, but it funded $5.2 million for employee raises after freezing wages in 2009-10.

“We must renew our commitment to adequately fund quality public schools,” said Susan Firmage, president of the teachers’ Davis Education Association, noting teachers are being paid for four fewer days annually this year than two years ago. “The action the school board will take tonight is a step in that direction.”

Many attendees said they lived on fixed incomes and could not afford a tax increase. Some suggested their own cost-saving measures for the district, from whacking teachers’ raises and cutting the superintendent’s salary to ejecting students who are undocumented immigrants.

“I would like to suggest a cut,” said Gary Fox of Fruit Heights. “That is to cut the subject of evolution out of schools. It serves no purpose to reading, writing and arithmetic.”

The Davis school board reduced the tax hike, in part, because of new money it could receive as part of a recent boost to education funding approved by Congress. Davis could receive $10 million of the $101 million in federal money expected to flow to Utah.

But three attendees of the hearing urged the Davis board not to accept “Obama money.”

“I’m a retired federal servant and received no increase in my income,” said Ken Wilks of Layton. “I recommend the school board exercise similar control and make no increases and do not depend on Obama money.”

Board member James Clark said he will take $10 million for schools, even though it is one-time money that will not address long-term needs. He said he was upset by the bulk of the comments, noting “only 10 percent” were about educating kids.

“What it boils down to in this state is we have a lot of children. But I wonder if we have the will to properly educate them,” Clark said. “There’s a lot of discontent out there — and I understand that. But my job as your representative is to find out and [do] what’s best for the kids in this district.”

A recent district survey of 400 Davis County residents found that 65 percent were willing to pay up to $65 more in property taxes a year to support schools.

Utah Receives $3 Billion In Fed Stimulus Money

Utah has received over $3 billion and $1.5 billion in tax cuts from the American Recovery and Reinvestment Act. Reports indicate that Utah stimulus spending has surpassed $1170 per Utah resident. Utah’s acceptance of the stimulus funds has remained controversial.

- SL Tribune: Utah Takes In More Than $3 Billion In Federal Stimulus Money

- Deseret News Blog: Should Utah Take The Money?

Film Commission Seeks Renewed Tax Incentives

The Utah Film Commission presented a proposal to the Utah State Legislative Tax and Revenue Committee on Wednesday to renew tax incentives for motion pictures. Utah offers a twenty percent cash rebate on dollars spent in the state for film production. Utah also grants sales and use tax exemptions for film equipment.

- Deseret News: Utah Film Commission Pitches Movie Production Incentives

Potential Special Session To Apply For Federal Education Money

Governor Gary Herbert is strongly considering applying for $101 million in federal education money. Utah may not have ultimate control over how the money is spent which is causing a controversy among many members of the legislature. In order to apply for the money Governor Herbert will have to call a special legislative session since the legislature must approve federal grants over $10 million.

- Deseret News: Herbert To Apply For Federal Education Funding; Special Session Anticipated

Utah.gov Wins Social Media Award

The official State of Utah website, Utah.gov, was awarded the “Best Fit Integrator” award by the Center for Digital Government. The award honored Utah for its use of “innovative solutions to suit the need to aggregate social media efforts.” The use of diverse social media outlets has helped Utah.gov reach an average monthly visitor rate of one million in 2010.

- MarketWatch: Utah.gov Win National Award for Social Media Efforts

Ten Principles of Privatization

The Reason Foundation and the Heartland Institute have identified ten principles of privatization. Throughout the country local and state governments have saved taxpayer’s money by privatizing airports, electric and telecommunications utilities, prisons, schools, transportation, and many other services. Among the ten principles were cost savings, access to expertise, innovation and improved risk management.

- Reason Foundation: Ten Principles of Privatization

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Salt Lake City’s dedication to soccer and police is proving a bit costly.

When capital residents rip open their property-tax notices this week, most will see a 16 percent jump in city charges — even though Mayor Ralph Becker pinched departments, pruned programs and approved layoffs to avoid a general property tax spike.

The reason is simple. Bond payments simultaneously are due for last year’s voter-approved $125 million public-safety complex as well as for the $15.3 million soccer-and-softball complex, greenlighted by residents back in 2003.

Beyond that, judgment levies and a $1 million spat with Salt Lake County about “redundant” emergency services, will swell the bills at average-priced homes in excess of $100.

“It will be a hardship for a lot of people,” says Jena Burt, an 82-year-old Poplar Grove resident who lives with her husband on a fixed income. “There are a lot of people down here out of work or working part time. It’s kind of scary.”

The amount will rise further once taxpayers tabulate a Salt Lake City School District increase and a bump in the library levy.

“It really comes across as a slap in the face to Salt Lake City taxpayers,” fumes Royce Van Tassell, vice president of the business-backed Utah Taxpayers Association. “In this economic environment, when taxpayers are having to cut back on their own budgets, it’s just unjustified.”

A truth-in-taxation public hearing is set for 6 p.m. Wednesday at City Hall.

Gina Chamness, the city’s budget director, says officials already are fielding calls from an uneasy public. While individual tax increases will depend on an owner’s home value, Chamness says “overall, 16 percent is about where it’s going to be.”

A $1 million chunk is a one-time tax to reimburse the city for property-tax disputes, according to David Everitt, Becker’s chief of staff. Another $1.1 million relates to a dispute between the city and county about taxes collected for emergency services such as hazardous materials and bomb-squad investigations.

The city pushed, unsuccessfully, for county leaders to offset that amount, arguing the emergency services already are provided by the city and therefore constitute a redundant tax.

“We are going to jointly request that the Legislature audit that program to see if in fact double taxation is occurring,” says Everitt, who concedes that the collective timing of the property-tax hit “really is unfortunate.”

Van Tassell argues the overall tax burden is unnecessary. After capital residents “stepped up” to approve both bonds, he says, “apparently their thanks is to say, ‘We’re going to tack another $2 million onto your tax bill.’ It’s really difficult to believe that there isn’t $2 million in cuts that can be made.”

Everitt says no way.

“The residents made it very clear during the budget process that they were not willing to have certain services and programs cut,” he says. Despite that, the popular YouthCity Artways program was eliminated, park maintenance was trimmed, garbage fees were raised, and 70 jobs were erased.

In all, Everitt says, every Becker budget since his 2007 election has constituted a “cut fest.”

urt, the Poplar Grove retiree, said she fully supports the new public-safety complex because police and firefighters are “jammed in that old building.” At $75 on a $260,000 home, that bond accounts for the bulk of the property-tax boost. Still, when Burt was told about the average tab on this year’s notice, she gasped.

“I haven’t gotten mine yet,” she sighs. “But all my neighbors said the value of their home went down but their property tax went up.”

Timing, it seems, is everything.

Just a handful of residents made their way to Wednesday night’s City Council meeting on tax increases for property owners in Salt Lake City, voicing little opposition to a potential tax hike.

City officials quickly voted unanimously to end the public hearing and have the final vote on the issue next week.

A potential increase in property taxes would be one of several provisions the city has made to make up for a shortfall in the budget for the upcoming year. The argument between the city and those who spoke against the proposed tax hikes is whether the planned budget for next year made the cuts that were necessary without placing an extra burden on property owners.

After facing an 18 percent drop in sales-tax revenue since fiscal 2009, the Salt Lake City Council approved a budget earlier this summer that found some $20 million in cuts, mostly achieved through program reductions, cuts to non-critical services and the elimination of almost 70 positions.

Included in that approved budget was money to pay for a judgment levy that covers revenue lost due to property value decreases from the previous year. This one-time assessment could collect $1.1 million for the 2010 fiscal year only.

While the opposition was sparse at Wednesday’s council meeting, it was present and vocal. Groups such as the Utah Taxpayers Association were represented among the few people attending.

“It’s just wrong for Salt Lake City to come and slap (taxpayers) in the face and say, ‘We need another $2 million because we’re unwilling to make another $2 million in cuts,’ ” said Royce Van Tassell, vice president of the association.

An additional $1 million appeared as a revenue line item that was not included in expenditures. That money is an estimate of what city officials believe was an inappropriate double-taxation for money collected by Salt Lake County for the provision of some emergency services.

Work to resolve this dispute has been under way for months, and as of this week, the city and county have agreed to jointly request a legislative audit focused on the issue. Results of that audit are expected to be available by the end of the year.

Property owners such as Jeff Taylor are riled by the idea of paying extra taxes in a recession-plagued economy. Taylor owns rental properties in the city and said he can see a direct effect of increased property taxes on his business.

“I’m supposed to provide housing at a certain standard,” he said, “and it’s affecting my bottom line where it’s become a huge expense.”

The lion’s share of the increase most property owners will see this year will go toward debt service on about $8.8 million in bonds previously approved by voters. Both the soccer complex bond, $15.3 million approved in 2003, and funding for the new public safety building, $125 million approved last year, go into repayment this year. Payments on that debt will add about $87 to taxes on an average-priced ($254,000) Salt Lake home.

“We’re all being asked to make budget cuts financially,” Taylor said, “but it doesn’t seem like that’s happening at the local level.”

The final vote on whether the city approves the property tax increases will be at 6 p.m. Tuesday, Aug. 10, in the Salt Lake City-County Building.

Salt Lake County voters will be asked to put the finishing touches on the new Utah Museum of Natural History. The County Council voted 6-0 Tuesday to place a 15-year, $15 million bond issue on the November ballot.

The owner of the average $265,000 home would pay just $2.40 more per year — less than a penny a day — if the bond is approved. But, with everybody pinching pennies, there’s no guarantee of success.

Several council members and the Utah Taxpayers Association expressed reservations about the timing of the funding request, which would enable museum officials to complete the exhibits in the $102 million museum and open as planned in late 2011.

But neither council members nor the taxpayers’ group are arguing against the bond; rather, they fear the poor economy coupled with other tax increases could cause voters to reject what is considered by most to be a reasonable request.

While some observers say the museum should have been built downtown to help create synergy between cultural attractions, few would argue that the museum should stay put on Presidents Circle on the University of Utah campus. The museum’s expansive collection of Utah antiquities is vulnerable to everything from earthquakes and changing temperatures to water leaks in the aging structure, while space is at a premium. The new museum will nearly double that size to 165,000 square feet.

Museum officials have already done most of the heavy lifting for the new building, raising more than $86 million of the $102 million tab with a combination of government grants and private donations. Rio Tinto, owner of Kennecott Utah Copper, gave $15 million and will lend its name to the facility, which is under construction at the U’s Research Park.

Judging by past bond questions for cultural facilities, including the Hogle Zoo and Tracy Aviary, a majority of Salt Lake County voters are likely to support the measure. But it’s the impact on the minority, the folks who repeatedly vote against such expenditures and have tax hikes forced upon them, that worries Councilman David Wilde.

That’s a hazard of living in a democracy — majority rules. But Wilde makes a point. Voters will want to weigh the impact on their neighbors versus the benefit to the museum, a popular destination for school field trips and family outings.

Still, $2.40 a year seems a nominal sum. And the voters are certainly capable of deciding what’s best for themselves. The council was wise to forward the request to the people who pay the bills.

After unsuccessfully chasing a multimillion-dollar bond in June, the Oquirrh Park Fitness Center plans to take a yearlong breather before trying again.

It’s not that officials have given up hope of building a bigger recreation center. It’s that they want more time to make their proposal palatable to voters.

“I don’t want to do something that isn’t well thought out,” said Alan Anderson, chairman of the Oquirrh Recreation and Parks District Board, who cast the deciding vote Monday to keep the bond proposal off the November ballot.

The fitness center has reason to be wary.

Voters defeated a $12 million bond in June that would have given the west-side attraction a massive makeover – maybe covered the Olympic-sized pool, enlarged the weight room, introduced a lazy river to the outdoor water park and added space for aerobics.

It was an appealing prospect for a fitness center that has grown so cramped that aerobics classes now spill into hallways and workout equipment requires a waiting list.

But voters within the Oquirrh Recreation and Parks District (a taxing district that includes portions of Kearns Township, Taylorsville, West Valley City and West Jordan) weren’t willing to pay the $39 a year on a $175,000 home that it would cost to fund improvements.

So fitness center leaders struggled — until Monday — to figure out what to do next. The question wasn’t whether to ask voters for money again — the question was when.

Laurie Stringham, one of three members on the Oquirrh Recreation and Parks District Board, remained adamant Monday the fitness center should put its proposal before voters immediately.

She believes the outcome might be different during a general election when more people, on both sides of the partisan aisle, come out to vote. The June election attracted higher numbers of traditionally tax-leery Republicans who, unlike Democrats, had a primary election to decide.

As for next year? It’s an off-year election for municipal offices, when voter turnout generally goes down.

“Our best time to catch the most people and get a pure vote of the populace,” she said, “would be this November.”

But the board took a more cautious approach, deciding to delay any vote until at least 2011. The fitness center’s existing bond is scheduled to retire then.

The delay likely will have little impact on the fitness center’s construction plans. If the bond had been approved this year, officials wouldn’t have started work until after the existing debt expired anyway. If the bond is approved next year, it might start several months later than expected.

But officials hope their next attempt succeeds. The fitness center hit 4,071 members in June — a bittersweet report for officials who wonder how many more patrons their west-side workout venue can handle.