Martin’s Latest Tax Issue

For the third time in four years, the voters are being asked to approve an increase to the sales tax this November.

In 2014, the voters rejected a county-wide sales tax increase by 73 votes. Last year, a similar measure was defeated by 63% of the voters. This year, the request is for a ½-cent increase dedicated to School Board capital projects. This comes on the heels of an August referendum to increase the ad valorem rate for the School District by ½-mill. The voters approved that increase by nearly 56% of the votes cast.

The August proposal, which will generate $11 million per year for the next four years, will be almost entirely dedicated to teacher compensation. The Board made a compelling argument that swayed the usually anti-tax Martin County voter. Now, just a few months later, the School District is back.

If passed, the sales tax will raise an additional $16 million per year or $112 million over its seven-year existence. Most of that money will go to build the new Palm City and Jensen Beach Elementary Schools, which are both functionally and physically obsolete. Those construction costs will be $32 million for each school.

Martin County School District has $98 million in other capital projects that need immediate attention. How did we get into this predicament?

Most of the blame can be placed at the feet of the “Lords of Tallahassee.” Beginning in 2008, the Legislature mandated millage reductions (taking the credit for these tax cuts) that have resulted in $91.6 million less collected for capital projects in the past decade. There is an obvious correlation between the two figures.

Tallahassee dictates the maximum millage rate that can be used for capital expenses, currently 1.5 mills. That equates into $31.6 million per year in Martin County. Because of mandates, pre-emptions and rules, the School Board has had its hands tied in implementing cost-cutting solutions.

What are some of the examples preventing Martin County from saving tax dollars? The state dictates the size and capacity for each type of school built, which components must be used, which systems are necessary to include and construction cost limits. Every school must be built to be used as a shelter. Because of these restrictions and mandates, it will cost $32 million for the district to build a new elementary school.

There are obviously real needs in Martin County’s schools, but I am not voting in favor of this additional increase for several reasons. Unlike the earlier ad valorem request, except for the two new schools, all other expenditure decisions are left in the hands of the Board. I don’t believe they have the political will to resist the different constituencies that will be clamoring for new equipment and space.

This was proven true by the Martin County High School Pool Show. The Board decided to take a popular amenity (the pool) and discuss closing it. This brought parents, students, and others to speak at the Board meeting about what the pool means to them and the County. This was political theater of the highest sort. After a couple of hours of public comment, the Board weighed their options and decided to keep the pool open for now, subject to a further discussion after the ½-cent vote.

If the ½-cent passes, the School Board will have an additional $112 million raised over a seven-year period. Real estate taxes will bring in another $221.2 million over the same period. The Martin County School Board will have a total of $333.2 million for capital projects.

I believe that every cent is needed. I just don’t trust that the School Board will spend the money wisely. I would be much more comfortable with a specific expenditure plan that can be presented to the voters as the Board did with the ad valorem tax increase. Current and past administrations and boards have not adequately planned. Like bureaucrats and politicians everywhere, they have been shortsighted. Political expediency has taken precedence over a sound future in the district.

If the School Board wants my vote, they need to reconfigure how the sales tax proceeds will be designated. The Board should use those funds to bond the costs of the two new schools and to pay off the mortgage at Anderson Middle School. The advantage to this plan is that they would receive the money for construction immediately. This would ensure that the schools are built now.

The other $221.2 million in ad valorem funds for capital projects could go to eliminating the backlog and to set up reserve funds for future equipment replacements and capital repairs. A plan should be presented to the Board by the staff outlining exactly how this would be accomplished.

Martin County taxpayers and voters are not against taxing themselves. What they are not in favor of is having their money continue to go down a rathole of political pandering.