A closer look at the St. Joseph School District property tax levy and district budget
October 31, 2017
By Sam Zeff
Editor's note: This is the second in a multi-part series of stories that Ballotpedia will publish regarding the St. Joseph School District and its property tax levy. Click here to read the first installment.
The property tax levy question on the November 7 ballot in the St. Joseph School District is only 177 words long. The district wants to raise an additional $11.5 million each year by increasing property taxes by 38 percent.
For the owner of a $112,000 house (the median price in St. Joseph), that means an extra $245 per year in property taxes. It boils down to an additional $1.15 for every hundred dollars in the property tax assessment.
However, wrapped up in that dry ballot language are three years of cascading scandals that damaged trust between the district and its residents.
Opponents say the district has failed to fix all of its past problems. But they also say the tax hike is too big and contains money for capital projects that should be paid for with bonds. For example, about $600,000 is earmarked to upgrade or add air conditioning at three district high schools and two middle schools.
“We need to see drastic change in this district for that kind of money and that’s why I think a smaller levy that’s directed at teachers makes more sense and the bigger spends gets covered by a bond issue which will cover a true facilities plan,” says former school board member Eric Bruder, who is now one of the opposition leaders.
Few argue that the St. Joseph district doesn’t need more money. Part of its property tax levy dropped off the books three years ago (63 cents was subject to a sunset provision) after the scandals broke. At that time, the board decided that asking voters to renew the tax would be a wasted effort.
Another controversial part of the levy proposal is that it contains no sunset clause. Those opposing the ballot measure are advocating for one and arguing that it will keep the district honest. Proponents of the levy argue that it is difficult to operate any enterprise where part of its revenue is in periodic jeopardy.
The current 2017-2018 budget shows exactly the financial problem the district is facing.
The board approved a budget of $133,361,523. However, revenues are expected to be just $125,674,000. That leaves a deficit (both operating and capital) of $7,687,523.
That kind of deficit spending has been going on for several years. Last year, the district had a deficit of $13,566,349. In the 2015-2016 school year, it was $10,280,253.
The district has been eating into its reserve funds to cover those deficits. Board policy says that the district should have 20 percent of operating revenue in reserve. The 2017-2018 budget message from the district says it had 19.68 percent in the bank at the end of last year, which will drop lower this year. If the levy passes, none of the money will be available until next December.
School districts keep that much cash on hand in order to cover costs when tax money is not flowing into the district or to pay for unanticipated costs, such as damage from a storm.
Although the district was bringing in less tax revenue, the board continued to increase district spending. In 2015-2016, the budget was $127,779,219. It rose the next year to $137,069,127. This year, the district budget dropped to $133,361,523. Overall, the budget has grown about 4.4 percent in the last three years. While the district’s budget grew, the number of employees remained steady. There were 1,672 full time equivalents (FTEs) in the 2013-2014 school year. That dropped to 1,668 FTEs this school year, according to district data.
| St. Joseph School District budgets[1][2][3] | |||
|---|---|---|---|
| School year | Total revenue | Total spending | Difference |
| 2009-2010 | $109,694,000 | $109,686,000 | $8,000 |
| 2010-2011 | $115,956,000 | $111,507,000 | $4,449,000 |
| 2011-2012 | $121,869,000 | $118,868,000 | $3,001,000 |
| 2012-2013 | $124,581,000 | $127,887,000 | -$3,306,000 |
| 2013-2014* | $126,142,337 | $140,166,318 | -$14,023,981 |
| 2014-2015 | $132,330,433 | $135,710,004 | -$3,379,571 |
| 2015-2016 | $117,498,967 | $127,779,219 | -$10,280,253 |
| 2016-2017* | $123,502,778 | $137,069,127 | -$13,566,349 |
| 2017-2018* | $125,674,000 | $133,361,523 | -$7,687,523 |
*Actual budget figures for the 2013-2014, 2016-2017, and 2017-2018 school years were not available. Ballotpedia gathered the 2013-2014 estimates from the district's 2014-2015 budget publication and gathered the 2016-2017 and 2017-2018 budget projections from the school district's current budget document.
From the 2009-2010 school year to the 2017-2018 school year, the St. Joseph School District is projected to have operated at a net deficit of $44,785,677. More than 70 percent of that deficit spending, or $31,534,125, is from the last three years.
The potential tax levy revenue is earmarked for teacher pay increases, lower class sizes, increased early childhood education opportunities, and more. The list is long and specific, says Superintendent Robert Newhart. “There’s an inclusion plan for special education for more of a class type environment that would involve additional special education teachers and paras. There would also be two social workers included in that $2.4 million.”
The list also includes:
- $1.5 million for new student one-to-one technology
- $1.4 million to enhance student performance and safety
- $200,000 for additional after school programs
When asked what happens to those needs if the voters say no, Newhart didn’t hesitate. “None of this happens. None of this happens.”
“Will I say the school district will close? No, they could stay open but I don’t think that’s a great goal to shoot for just keeping your doors open,” says Pat Dillon, co-chair of The Committee to Move St. Joseph Forward.
The pro-levy forces have focused first on what the additional money would mean to students. But they’re also arguing that teachers need more money so they’ll stay in St. Joseph. In its campaign material, The Committee to Move St. Joseph Forward says, “Our district often loses some of our best teachers to teachers to these better paying districts.”
It is true that St. Joseph teachers are paid less than many others. In Missouri districts with more than 10,000 students (the district has 11,400 students), there is only two that pay worse (St. Louis and Wentzville), according to the state affiliate of the National Education Association.
However, salaries have risen since 2014 when the average teacher salary in the district was $44,181, according to data provided by the district. As of this year, that had increased to $49,925, which is a 13 percent raise.
At the same time, the average administrator's salary has jumped from $87,092 to $90,897. That is a 4 percent increase. However, that average is brought down by the fact that many new administrators were hired at slightly lower wages and they haven’t been in the district long.
Stay tuned for Part 3 later this week. We’ll be taking a closer look at the sides lining up for and against this measure.
Sam Zeff covers education for KCUR in Kansas City, Mo. He's won a National News Emmy for investigative reporting, four National Headliner Awards, and four Edward R. Murrow awards. Zeff has managed newsrooms in Minneapolis, St. Louis, and Kansas City. He was educated at the University of Kansas.
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