January 28, 2003

To: All Members in Jordan School District

Re: Proposed Tax Increase and Bond Election

The Jordan School District is seeking voter approval to issue a $281 million bond and to increase the combined voted and board leeway from 0.001400 to 0.002000. The voted leeway increase is intended to be used for maintenance and operation costs of the twenty two schools that will be built with the $281 million bond.

District officials are stating that the $281 million bond will not necessitate a tax increase since new growth will increase the number of taxpayers. Also, new debt will be issued as existing debt is retired. However, without the bond, taxes would automatically decrease as existing debt is retired.

The voted leeway, once fully implemented, would generate $9 million of additional revenue per year and would increase taxes by $33 per year for a $100,000 home and $60 per year for a $100,000 business.

The Utah Taxpayers Association has several objections regarding this proposed tax increase and bond issuance:

1. Jordan School District should implement less expensive options including additional emphasis on year-round schools, consolidation of underutilized schools on the east side of the district, and busing of students from areas in the district experiencing enrollment growth to areas in the district experiencing enrollment decline.

2. Jordan School District’s tax rates are already among the highest in the state. Jordan’s total property tax yield per student is currently 11% higher than the effective statewide average. If the voted leeway is approved, Jordan’s total property tax yield per student would be 19% higher than the statewide average.

3. Jordan’s voted, board, and 10% of basic (operation part) tax yield per student is currently 9% above the statewide average. If the voted leeway is approved, Jordan’s voted, board, and 10% of basic tax yield per student would be 40% higher than the statewide average.

4. Utah is currently experiencing severe economic problems. Utah’s per capita bankruptcy rate is highest in the nation and is twice the national average. Utah’s total tax and fee burden as a percent of personal income is 9th highest in the nation. Higher tax burdens lead to lower long term economic growth.

5. Jordan School District should have conducted the voted leeway and bond election in November to coincide with the general election. This would have ensured higher voter turnout. A February election ensures lower voter turnout which means that district employees will have a larger impact on the election’s outcome.