Property taxes funded public schools almost 20 percent less this year

By Emil Dixon

December 12, 2005 | LOGAN -- Cache County taxpayers may have noticed a decrease in the percentage of their property tax that is used to pay for public schools this year after viewing their truth in taxation notice.

Cache County Auditor Tamra Stones said depending on what school district residents live in, between 51-61 percent of their property taxes went to either a statewide school levy or a local school district tax. She said in previous years approximately 70 percent of property tax went to schools, but the state has decided to take less out of property taxes and give schools money out of a general fund.

Logan City School District's Business Administrator Paul Jensen said the school district received approximately $40 million last year, with around 25 percent of that coming from property taxes. He said even with the decrease in property tax funds "schools still get their money."

Explaining the way property taxes are collected and dispersed, Stones said the county appraises a property's value based on "how it sits Jan. 1 of each year." She said the county then sends a letter to residents telling them how much they will pay in property tax for the following year, a truth in taxation notice.

Stones said property owners or their mortgage companies pay the property tax to the county treasurer, who then has to disperse 90-95 percent of the funds to the receiving entities by March 31 of the following year.

In the case of school districts, Stones said they are allocated funds based on a number of factors, including student enrollment, the number of teachers they employ, and the cost of their buildings.

"The remaining 5-10 percent of funds are kept in case we have any problems," Stones said. "For example, if someone overpays we use our remaining funds to reimburse them."

Jensen said after the school district receives its money from the county treasurer, administrators disperse it to the individual schools. He said the money is used to help pay for all of a school's expenses, except school lunches.

"High schools receive the most money," he said, "because the students are older so they have more activities. They have higher level courses, with a higher cost associated with them, and [the district] is required to have a lower student to teacher ratio."

He said despite the decrease in property tax funds, the Logan City school district is able to maintain the same budget because it has received more money from the state and federal government. He said this is in part because the district has been more actively soliciting the federal government for grants and earmarks, which made up about $5 million worth of the district's total budget last year.

However, he said most of the district's money comes from the state's Minimum School Program that distributes money to most of Utah's public and charter schools from the general education fund.

Jensen said even with the additional funding the district has received there is not an excess of funds. "We carry around $760,000 as a rainy day amount, but for the most part we use everything we get and then some," he said. "The money is just good for the kids."

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