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District May Raise School Tax Rate

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By MARILYN BROWN

The Tampa Tribune

Published: July 19, 2008

Updated: 07/19/2008 12:20 am

TAMPA - Hillsborough County property owners may pay a little more in school taxes while the district's budget shrinks.

The district is proposing collecting $7.77 for every $1,000 of taxable property - up from $7.52.

That would mean an increase of $44.45 for a home valued at $200,000 if the owner qualifies for the $25,000 homestead exemption. A home valued at $150,000 that qualifies for the homestead exemption would pay an extra $31.75 in school taxes.

At the same time, the district is reducing its total budget by more than $46 million. It was $3.14 billion in 2007-08 and is projected at $3.09 billion for 2008-09, said Gretchen Saunders, the district's budget director.

"Property taxes are down, foreclosures are up, the value of houses is down," Saunders said. "We've got a lot of property out there where people aren't paying their taxes."
Construction Budget Trimmed

At least $21 million less will be spent for building in 2008-09, Saunders said. Renovations and reconstruction schedules will be pushed back for some schools.

School taxes include a separate portion for building, or capital outlay. Until this year, districts have been allowed to levy up to two mills for that purpose, which Hillsborough did. The Legislature reduced that to 1.75 mills, which Hillsborough plans to collect. Property owners will still pay the other quarter mill, but it will go into general revenue for districts.

The district's five-year building plan is being revised to reflect that diversion of revenue from building as well as other projected shortfalls, said Cathy Valdes, the district's chief facilities officer.

"We're dropping about $111 million in renovations," in the five-year plan, Valdes said.

Taxes Fund Public Education
A slimmer budget combined with higher school taxes is a new phenomenon in the nation's eighth-largest school district. Just four years ago, the county was growing, schools couldn't be built fast enough and property values and sales taxes were increasing.

Hillsborough's public school enrollment was flat in 2007-08 and is projected to again be flat or reflect a small loss in 2008-09.

Florida relies on sales and property taxes to fund education.

Public perception is that lottery money is a large factor. However, in 2007-08, the lottery added about $17.5 million to Hillsborough with about $10 million designated as bonus money for school grades.

Federal money for school lunches, children with disabilities, children from high-poverty homes and an array of grants usually make up less than 10 percent of the district's budget. Hillsborough would be in even worse shape if it were not for tens of millions in grant money that it collects.

This year was unusual for the budget all around. The Hillsborough County School Board voted on a proposed budget Tuesday with no millage rate because the district had not received projected figures from the state Department of Education.

Two public hearings and board votes are scheduled before the final budget is official. The first hearing is July 29 at 5 p.m. and the final is Sept. 4.

Reporter Marilyn Brown can be reached at (813) 259-8069 or mbrown@tampatrib.com.

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