Public School Finance- Prospectus Paper Essay, Research Paper

Public School Finance: Prospectus Paper

Oklahoma public-service corporation companies are presently protesting the sum of revenue enhancements that they must pay. The difference came approximately because of the difference between what public-service corporation companies and other commercial belongingss and other entities such as railwaies and air hoses must pay. The public-service corporation companies originally protested all of the revenue enhancements that they had to pay. They are now protesting the per centum of revenue enhancements that they must pay above what the commercial belongingss pay. The money is presently traveling into escrow histories until a determination over the revenue enhancements has been made. Harmonizing to Oklahoma Tax Commission estimations, the protests could impact more than $ 63 million in support for schools and counties across the province. The money will non be allocated into the schools until the difference has been settled.

A big group of Oklahoma overseers has been run intoing with the large four public-service corporation companies ( Public Service Company of Oklahoma, Oklahoma Natural Gas, Oklahoma Gas and Electric and Southwestern Bell ) to seek to make a via media. The most recent meeting occurred on Monday, November 28, 1994. At that meeting Marvin Stokes, Superintendent of Byng Schools, proposed that the public-service corporation companies be assessed at 25 Millss and that commercial belongingss be assessed at 20 Millss. This would bring forth around $ 100 million in new gross for Oklahoma schools. Eugene Chitwood, Okemah County Assessor, suggested that public service companies be assessed at 23 Millss and that commercial belongingss be assessed at 15-19 Millss. This would bring forth around $ 50 million in new gross for Oklahoma schools. The public-service corporation companies are presently paying 22.85 Millss and commercial belongingss are paying 11 Millss. Private advalorem belongings is assessed at 11-14 Millss. The public-service corporation companies were receptive to the suggestions. They do non care if their revenue enhancements are increased every bit long as commercial belongingss are assessed at a higher degree every bit good. Another thought proposed to the public-service corporation companies for their revenue enhancement rate to diminish to 21.85 Millss. This would liberate up about 58 million dollars instantly if the public-service corporation companies agree.

The group of Oklahoma overseers will run into with Glen Johnson, Speaker of the Hous

vitamin E, on Monday, December 5, 1995. The overseers feel that it would be to their advantage to hold there concerns heard by the House even though the State Equity board has the concluding say. The State Equity Board is comprised of the Governor, Lieutenant Governor, State Superintendent of Schools, State Treasurer, the State Auditor, and the State Secretary of Agricultural. In order to acquire a step passed by the State Equity Board, a step must have four of the 7 ballots. Dale Wells, State Representative for Oklahoma, feels like the determination will stop up on the legislative assembly in February and that it will be one of the first points discussed.

It is advantageous to the schools to hold this affair settled every bit rapidly as possible. Some school territories who rely on the revenue enhancements from local public-service corporations for the bulk of their support are concerned as to whether they can maintain their school traveling past February of 1995 without the gross derived from public-service corporation revenue enhancements. In most territories, money from local public-service corporation companies accounts for as least 40 % of their fixed disbursals. Schools who have to pay off bonds rely to a great extent on the income gained from public-service corporation companies. If the affair is non settled rapidly, our schools could be in serious problem. Court ordered opinions could ensue against schools and counties which can non pay their measures. Funding for all schools will be reduced as State Aid is redistributed to assist replace the lost local/county ad valorem support. Bond evaluations of schools could be adversely affected. Finally, schools and county authoritiess could be forced into consolidation.

I think that we are following a bad tendency if we allow the public-service corporation companies to take down the sum of revenue enhancements they pay one time once more. The public-service corporation companies have non had an addition in there revenue enhancements in the past few old ages ( since 1991 ) . The public-service corporation companies in Oklahoma in consequence assess their ain belongingss. If they wanted to state that they were worth a batch less than they really were, we would hold no manner of cognizing. Utility companies besides choose the sites in which they build around schools with lower millage rates & # 8211 ; if the rates rise, they can merely travel their sites. The public-service corporation companies do non pay their revenue enhancements, the consumer does. The public-service corporation companies make a net income regardless of the sum of revenue enhancements that they must pay.