By JAN LARSON McLAUGHLIN
BG Independent News
Bowling Green’s income tax levy will be filed with the Wood County Board of Elections on Wednesday so it can appear on the November ballot.
Board President Norm Geer said voters need to realize that the levy is for no new taxes – just a continuation of the current 5-year income tax.
“The main advantage is we don’t have to keep money in a fund as a contingency,” if the district changes the levy from a five-year issue to a continuing levy.
Geer also pointed out the 0.5% income tax is lower than most districts, and that the district will benefit from keeping income tax support to reduce the dependence on property taxes.
“It does serve the function of adding income tax to the tax base of the district,” Geer said after Tuesday’s school board meeting. “It balances out our taxing portfolio.”
The school district’s financial consultant David Conley has recommended that the district ask voters to change the existing income tax from a five-year to a continuing issue.
That would allow the district to keep a lower carryover since the $3.8 million from the income tax wouldn’t be in question every five years.
Voters already converted two other five-year issues to continuing – and if they approved this last one, it would mean the district could carry a lower balance and make better use of funding, Conley said.
Income taxes can only be placed on May and November ballots, so the district has three chances before it expires.
Some voters have expressed reluctance to change a five-year tax to continuing, since they would like to have more control over district taxing. However, Geer said the income tax will continue to be essential for the district.
“We count on it every year,” he said.
Board member Ryan Myers asked about the new “Fair School Funding” from the state, and if that may help fill in for the income tax revenue. District Treasurer Cathy Schuller said the new state funding method will help the district – but not enough to make up for the income tax.
“It’s nowhere close to replacing it,” Schuller said.
Schuller said the Fair School Funding formula will take about three years to be put in place. The Office of Budget Management will be setting up new formulas that guarantee school districts won’t lose money.
For example, when students transfer from Bowling Green City School District, the district won’t lose more than it was getting from the state for those students.
“It’s a little bit better than what we expected last year at this time,” Schuller said.
