Penny tax generating less money

The list of school construction and renovation projects that Penny for Pasco has helped pay for during the past five years is long and stretches from one end of the county to the other.

Because of the economy, though, the penny isn't generating the kind of money once anticipated for the Pasco County school district.

The tax brought the district $14 million in 2005 and $14.4 million in 2006, its first two years of existence. Since then, the proceeds have dropped as the economy soured, according to a report given to the school board at a workshop Tuesday.

The district collected $12.3 million in 2007 and $10.8 million in 2008. Figures aren't final for 2009, but in the first 10 months of that year the penny tax generated $7.9 million.

"We're trending downward, but the positive point is we are still collecting money," said Mike Williams, a district staff accountant.

Voters approved Penny for Pasco in a March 2004 referendum, raising the sales tax from 6 cents on the dollar to 7 cents. The tax increase took effect in January 2005 and was to last 10 years.

Proceeds from the tax are shared by governmental bodies across the county. The school board and the county commission receive 45 percent each. The remaining 10 percent is divided among the municipalities.

District officials say they are about finished with the original list of Penny for Pasco projects. Most of the money collected in the remaining years will pay the debt service on a bond issue the district did when the penny was first passed.

Borrowing the money allowed the district to get started on projects before the tax started flowing in.

At Tuesday's workshop, the school board saw a presentation on projects the penny has helped fund, including new schools such as Oakstead Elementary, Double Branch Elementary, Crews Lake Middle and Anclote High. It also helped renovate numerous schools, including Stewart Middle, Pasco Middle, Cox Elementary and Zephyrhills High.

"Where would we have been without the penny?" said Joanne Hurley, the school board's vice chairwoman. "When you see this presentation and how much that has contributed to the quality and the quantity of our schools, it's just amazing."

Chairman Allen Altman said renovations are still needed at other schools, even though the original list of penny projects is essentially completed.