Taxing Authority of School Boards

Taxing Authority for Elected School Boards

Information on "School Board Taxing Authority" 

In Virginia, 103 localities now have elected all or some of their school board members. Roughly two-thirds of the 850 local board members statewide are elected. All Virginia school boards are fiscally dependent.

ANALYSIS:

Taxing authority for school boards poses serious issues for the state, local governments and school boards that need further in-depth study and analysis. Consider just a few of the many questions that would need to be addressed:

How would education be funded by the state? How would a composite index be determined? Would it be different for boards with and without taxing authority?

What would be the mechanism for splitting the local tax base? Tax bills? What taxes would be designated for the schools? Would those taxes be limited?

Would taxing power be unequal for elected city and county school boards, as it is for cities and counties?

Would budgets and tax rates have to be approved by the voters?

What are the implications for school divisions if they administer the collection of taxes? For local governments transferring this to the schools?

What problems would be encountered in counties with incorporated towns that also tax real estate?

What implications are there related to equity in educational funding?

What about contracted school debt?

Should each locality decide if it wants taxing authority for school boards (local option)?

COMMENT:

The VSBA has found elected school board members to be very independent, to seek information from other sources and respond directly, as opposed to through school staff, to their voting constituency. Thus, they are more inclined to support fiscal autonomy (the VSBA Delegate Assembly approved the attached in November 1996) to ensure their responsiveness to their constituents, citing that it is not practical for one elected board to be subject to the budget and taxing decisions of another elected body. There may be some elected board members, however, that would advocate that their governing body "continue to take the heat" for budget decisions that affect the schools adversely.

Governing bodies may end up being split on the issue. Some may advocate that having school boards with taxing authority would relieve the governing boards of funding operations for which they make no policy decisions. Further, it may enable the governing body to better resist raising taxes. Others may want to maintain their "power of the purse string." We have seen that local governing bodies in some localities with elected school boards already are trying to tighten the reins on school spending, push for categorical appropriations or attempt to dictate spending in various line items of the school budget.

The Virginia Municipal League has an official position supporting amendments to the state Constitution to allow local referenda on grant taxing authority to the local elected school board. The Virginia Association of Counties opposes such a change.

Fiscal Autonomy for Elected School Boards

1.20        Fiscal Autonomy for Elected School Boards
 
      The Virginia School Boards Association supports a legislative study to explore the subject of fiscal autonomy for elected local school boards.  11/96;   Amended 11/99
 
      Since 1992, when the General Assembly provided for local referenda on the direct election of school board members by voters, the citizens of Virginia overwhelmingly have supported changing from appointed to elected school boards. Currently, 108 of the 134 local boards in Virginia are elected in whole or in part.   

Fiscal independence logically accompanies direct election because it is necessary to ensure the responsiveness of local boards to constituents. It is not appropriate or practical for an elected school board to be subject to the budgetary and taxing decisions of another elected body.  

Constitutional amendments should be made to authorize the establishment of independent school divisions governed by elected school boards with powers to appropriate funds, impose taxes and borrow money for school purposes. The VSBA will continue to support and initiate legislation to authorize a state study of fiscal autonomy for elected local school boards.

Additional Census Financial Information

Fiscal Independency for Virginia Local (powerpoint presentation) A presentation for....The Virginia Association of School Boards - Richard G. Salmon, Professor, Virginia Tech - October 5, 2007-Charlottesville, Virginia

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