Taxation is always a tough sell

No opposition to SWOS but tax increases are difficult for some to accept

Though there is no organized opposition to Southwest Open School’s $3.4 million proposed bond issue, tax increases of any sort have a tendency to raise voters’ blood pressure and this local ballot question is no different.

The ballot question for SWOS is an effort to match a $7.4 million grant the school received from the Colorado Department of Education’s Building Excellent Schools Today program. The money is intended for a complete campus overhaul at the alternative high school.

SWOS Director Judy Hite said the majority of negative responses the school has received regarding the bond deal directly with the tax issue, not with the merits of the project itself.

“When we did our mail survey, over 80 percent said they support the project, but that doesn’t mean they will vote for it,” Hite said. “The comments we’ve received when people say they won’t vote for the bond are really nice, most of them just say they can’t afford more taxes. A few have even said they wish us luck, but they won’t be voting for the bond.”

Some local residents feel the current economic climate is not conducive to a tax increase of any kind, no matter how noble the intention.

“On its face, it is not the time for a tax increase,” said Cortez resident Bud Garner, a 2012 candidate for the Montezuma County board of commissioners. “Everybody wants tax increases, there is a state tax question on the ballot too, so it is not just about local issues.”

Lewis resident Dexter Gill said the first thing voters have to consider of any ballot issue is whether it is in compliance with the U.S. Constitution, as well as the state constitution.

“I also try to ask myself is it in anyway enhancing or detracting from my personal liberties,” Gill said. “This is a very difficult time for taxation of any kind. I do think (SWOS) has seen almost more success than our other public school and I want to see them succeed, but I’m just not sure taxation is appropriate right now. I want to see them cut waste and find funding that way.”

Another interesting component to the SWOS bond question is the impact on Montezuma-Cortez School District Re-1. The local district is the taxing authority for the charter school and the two share a bonding capacity.

Re-1 applied for a $37 million grant from the BEST program to cover nearly half of an $80 million project that would have included three new schools and massive renovations across the district. Some Re-1 officials and local residents are concerned SWOS’ pursuit of a property tax increase will dampen future efforts to address facility needs in the larger schools in the district.

“This is a terrible economic time to be asking the voters for anything,” said Re-1 school board President Jackie Fisher. “There is voter fatigue and voter concern and I am worried about how a SWOS project will impact future facility projects in the Re-1 district.”

Garner agrees.

“The school board is still trying to figure out what to do with the buildings in the district,” he said. “It is hard to think about a tax for such a small part of the district, even though they may deserve some of those upgrades.”

Robyn Moore, vice president of Denver-based investment banking firm George K. Baum, the bonding company for the SWOS bond, said tax increases are always controversial and school ballot issues often come down to whether or not the merits of the project are clear.

“There is always going to be controversy about tax increases,” Moore said. “The question the voters ultimately have to answer is if this is a project that is needed and if it is needed now. You can only delay infrastructure needs and defer improvements for so long. The (Building Excellent Schools Today) program recognizes that. Voters have to decide if the improvements are worth the money and if the needs are so substantial the tax issues aren’t as important.”

Reach Kimberly Benedict at kimberlyb@cortezjournal.com.