Saturday, February 2, 2013

The Campaign of 1994 or....

....How We Got a 2.85% Income Tax

Let me ask you a question - if you were offered a 64” HD flat screen TV with access to 900 channels, and you were told that it wouldn’t cost you anything… would you say Yes or No? Well you’d probably say, “Yes, thanks!”
Now what if you knew that that 64” TV with 900 channels was not a gift from the person offering it, but was in reality being taken out of someone else’s paycheck - a stranger who hadn’t been asked and had no say in the matter. Would you still say accept the TV?
Hold that thought while we go back to the joint income tax’s inception….
In November 2012 a non-resident business owner filed a complaint against Euclid Schools and the City of Euclid claiming the portion of the income tax the City collects from non-residents is illegally shared with the Euclid School District. For those of you not familiar with how the Joint Tax came to be, here’s a brief history.
Back in 1994 the Euclid Schools were facing much the same problems they face today – transiency, unfunded mandates, the high cost of special ed, health care costs.    
The City’s argument for raising taxes was a potential budget deficit in coming years. The rising cost of Fire and Police and a desire to increase the two forces necessitated the need for additional revenue.  
In 1994, Euclid Schools had 3 ways to raise revenue. In addition to property tax, Ohio schools could put an income tax on the ballot. That tax would function as a resident tax. Business profits and payrolls could not be taxed. All residents would pay a tax on their income, but social security income was exempt. The third option was a joint tax between city and schools on payroll and profits. The proposed rate would increase the City from 2 to 2.38%. Schools would receive .47%. The joint tax was selected and Council approved putting the .85% increase on the ballot.
The City and Schools targeted Seniors. The Schools touted the tax as an alternative to property taxes. The City’s message to Seniors was simple and repetitive – the increase will strengthen Safety Forces and you won’t have to pay it.
The City and Schools barraged voters with literature on all the wonderful things this increase would do to improve Euclid and its Schools. The Joint Income Tax was a dream come true. Seniors would have strong schools, they’d have strong safety forces and best of all – Seniors wouldn’t have to pay for any of it.  
In November voters approved the tax. It passed 8,715 to 8,126. Non-resident workers who couldn’t vote on the tax had to pay it from their wages. Businesses who weren’t asked for their input, had to pay it on their profits. 
In the 18 years since the tax passed, Euclid has lost population and wealth. Its police force has not increased. Housing values have plummeted. Neighborhoods have declined. Job growth is stagnant at best. The Schools remain in Academic Watch.
The business owner who filed the complaint has every reason to feel grieved. He was forced to buy a 64” widescreen TV and can’t even enjoy it.
For an expanded history, click The Campaign.  

2 comments:

Anonymous said...

I think that it was wrong and should be corrected. Cameras should not be allowed in the city. It is nothing more than an extra tax to raise money.

Anonymous said...

quoted from article....Back in 1994 the Euclid Schools were facing much the same problems they face today – transiency, unfunded mandates, the high cost of special ed, health care costs.

The school system who put the levy on the ballot lied to the tax payers. Myself voted "NO" when I read what the school system wanted and knew the truth. Both family members were teachers on which one worked in Euclid for 34 years. The Special Ed cost never did effect the tax payers from the beginning. My daughter was in the program which found out a few things. They charged my daughter $50 in school fees a year which was a big NO. The state covered that amount for the snacks and etc plus learning supplies. What parents do not realize when a child had a problem like my daughter who needed extra time the class room size was smaller. Told by one teacher every child who had a disability equal to 1 and 1/2 student in the class. Example you have a class with 22 students then two students with disability you actually had 23 students.
Overall the schools even lied this past levy to get the levy passed. One person told me she was told by the principal at her daughter school ( Arbor School ) the buses will start back up after the levy passed. The citizens of Euclid were lied to from the beginning which might catch up to the schools.
Read the news paper article about future t results with the schools. They reported last year only 47% of the 8th Graders past the test. With the new test coming out the state is only expecting 12% of the 8th Graders to pass. Now I'm asking..school getting all this revenue from the tax payers you expect good scores overall. My mother in-law told me there is always away to reach a child to learn. Yes we do have parents who are kids who are having kids. But maybe the schools should have courses where parents come in during the day and learn with their kids.

Sorry my email long but the schools are not going to get fix by keep lying to the tax payers. Plus I do feel there should be term limits on the school board for new ideas and etc. Like I said before the lying needs to stop to the tax payers. Teacher need to be accountable of their teaching. I'm glad not working for the schools since I've seen things which made me say "what are the tax payers paying for".

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