Washington CSD proposes tax increase

WASHINGTON — The Washington school board held its first public hearing March 27 for the district’s fiscal year 2025 budget proposal, which would bump property tax levy totals up from about $16.015 to about $16.14 per $1,000 of valuation. The change is expected to bring in an extra $787,821 for the schools.

Much of the increase comes from a re-implementation of the district’s cash reserve levy, a tax that’s been untapped in recent years while the schools maintained adequate cash on hand. But after “gradual degradation” of that fund, Superintendent Willie Stone said the levy was back in effect for the newly proposed budget, which would bring the reserve up to $1.9 million.

“Our cash isn’t negative, we have cash, but we don’t have enough cash to back the authority that we have,” he said. “Most districts are able to cash-reserve levy every year, but we had a healthy enough fund that we couldn’t do it. And it will naturally go down if you’re not able to levy for it at all.”

Stone said the rest of the 13-cent increase would go to special education programs.

Some levies will decrease under the proposed budget. The total property tax revenue ask for instructional support would drop $16,264 to $5,418, as the account switches some of its money source to income surtaxes instead of property taxes, according to Stone.

The school district’s management levy is also down in the proposed budget, dropping from $835,182 to $0. Stone said the account had enough money at the moment to give taxpayers a break, as Washington schools increase their tax asking elsewhere.

“In order for us to keep our tax rate down, we pulled off the management, and put more in the cash reserve levy,” he said.

At a public hearing for the change last week, Washington area residents said they understood the district’s need for money, but several said they were still skeptical of the potential tax hike.

Longtime Washington resident Dave Miller said he did not think taxpayers “would accept an increase,” urging school officials to cut spending, rather than raising revenue.

“You need to reduce costs everywhere you can, and if that means laying off people or closing facilities … we might have to,” he said. “We’re driving people and businesses out of the Washington area because of the tax rate here. It has to go down, not up.”

Larry Marek, another comment-maker, said he was “all for public education,” but worried about the ripple effects of higher property taxes.

“It’s going to be pretty difficult to accept,” he said. “If somebody’s renting a house, they’re going to pay (that much) more in rent, if the landlord’s taxes went up.”

The next public hearing for the proposed budget is scheduled for April 10. After that, the school board can approve its budget, unless a petition from the public prevents its passage.

Comments: Kalen.McCain@southeastiowaunion.com