citizens for tax fairness
VOTE NO
ON 5A & 5B
ARGUMENTS AGAINST BALLOT QUESTION 5A
INCREASE PROPERTY TAXES $66 MILLION PER YEAR MILL LEVY OVERRIDE
THE SCHOOL DISTRICT MLO TAX INCREASE WOULD BE ON TOP OF THE 40% TO 50% PROPERTY TAX INCREASE IN 2024 DUE TO HOME VALUE REASSESSMENT – In 2024, taxpayers are bracing for a huge property tax increase as Douglas County residential real estate has been reappraised 40% to 50% higher, so a $5,000 property tax bill in 2022 becomes a $7,500 property tax bill in 2024. A $6,000 property tax bill in 2022 becomes a $9,000 property tax bill in 2024. This new 5A Mill Levy Override proposed by the School District would be paid for by additional taxes on top of this already massive property tax increases that Douglas County residential property owners are facing. [source]
WITH A POSSIBLE ECONOMIC RECESSION, AND HIGH INTEREST RATES, 2024 IS NOT THE TIME FOR A TAX INCREASE – Now is not the time to add additional property taxes on top of the already massive property tax increases that Douglas County property owners are facing. Individuals, families, and seniors are wrestling with increased costs at the grocery store, gas pump, utility bills, insurance bills, and maintenance costs. The New York Federal Reserve Bank’s Probability of a Recession indicator is at 60%, the highest level since 1981. [source]
WITH HIGH INTEREST RATES, 2024 IS NOT THE TIME FOR A TAX INCREASE – 30-year mortgage rates are at the highest level since 2002. [source]
NO SUNSET AND THE PROPERTY TAX RATE CAN BE INCREASED OR DECREASED TO COLLECT THE $66 MILLION EVERY YEAR – The school district will have the power to levy whatever mill rate is necessary to collect the $66 million every year; if property values decline from 2024 level, the property tax rate will go up so that the school district still collects the $66 million; and the $66 million never sunsets.
THE SCHOOL DISTRICT’S PER PUPIL FUNDING HAS INCREASED 43% SINCE 2017 NOT INCLUDING ANY LOCAL MILL LEVY OVERRIDE – According to state reports shown in the table below, school district per pupil funding has increased to $10,145 per pupil in FY 2023-24 from per pupil funding of $7,396 in FY 2017-18. This is a 43% increase. The school district’s funding has increased, but they refused to make teacher pay a higher priority in the budget. After the November 2022 5A and 5B ballot questions failed, the Parker Chronicle reported on December 5, 2022, that school board member David Ray asked for a new budget that has higher teacher pay as a priority. But the school board declined David Ray’s request to make teacher pay a budget priority because of their “concerns that Ray’s plan could backfire and have voters argue that the district didn’t need the mill levy override to raise pay in the first place….”. The school district wants the teacher pay increase argument because it is a better argument to sell a property tax increase to voters.
THE SCHOOL DISTRICT IS NOT GROWING AT ALL – In 2013, the student enrollment was 64,600. By 2022, the student enrollment decreased to 63,900. By 2030, the District projects a further decline in student enrollment to 60,100. So their funding has increased, their student enrollment is flat, and they still want a tax increase. During this same time period from 2013 to 2022, the Douglas County total population grew from 302,000 to 378,000 or 25% growth. How is it possible that the school district enrollment is shrinking while the Douglas County population has grown 25%? It is because public schools have lost their monopoly over students.
AVERAGE TEACHER SALARY COMPARED TO FRONT RANGE SCHOOL DISTRICTS – The average teacher salary in school district is $61,449, which only looks low compared to the districts with the highest teacher salaries like Boulder (average $87,200) and Cherry Creek (average $80,221). For the 13 largest districts in Colorado, the average teacher salary is $68,500; so the school district average salary is in the normal range of market salaries paid by other districts, although on the low side.
COMPARISON OF DOUGLAS COUNTY STUDENT PERFORMANCE TO CHERRY CREEK – More money does not buy better education outcomes. Here is a side-by-side comparison of the school district to Cherry Creek on some key education performance measures. Even though Creek teachers are paid an average of $19,000 more, Douglas County students outperform Creek.
DOUGLAS COUNTY IS A GOOD PLACE FOR EMPLOYERS AND EMPLOYEES BECAUSE OF LOW CRIME – Great students is not the only reason teachers want to work in Douglas County schools. Douglas County crime rates, shown in the table below and adjusted for population size, are a fraction of other local areas. These low crime rates have value and are an important intangible benefit for employees and employers doing business in Douglas County.
VOTE NO ON QUESTION 5A
Now is not the time to add additional permanent property taxes on top of the already massive property tax increases that Douglas County property owners are facing for a school district with flat student enrollment through 2030.
ARGUMENTS AGAINST BALLOT QUESTION 5B
INCREASE DEBT $484 MILLION
THE DOUGLAS COUNTY SCHOOL DISTRICT IS NOT GROWING AT ALL BUT WANTS $484 MILLION OF NEW DEBT – In 2013, the student enrollment was 64,600. By 2022, the student enrollment decreased to 63,900. By 2030, the District projects a further decline in student enrollment to 60,100. So their funding has increased, their student enrollment is flat, and they still want more debt. During this same time period from 2013 to 2022, the Douglas County total population grew from 302,000 to 378,000 or 25% growth. This lack of student growth is a critical point for voters. The school district’s student enrollment has been flat for 9 years, and their own capital plan forecasts no growth in student enrollment by 2030. Yet, they want to borrow $484 million in new debt.
WHY IS THE STUDENT ENROLLMENT FLAT WHILE THE COUNTY HAS GROWN 25%? How is that possible? The answer is the school district has lost its monopoly over the parents and students. Using technology and entrepreneurism, parents now have alternatives to public schools. Just like every other enterprise, the school district must learn to compete for students and satisfy the parents. Until that happens, student enrollment growth will be slow or flat, even down.
THE REPAYMENT COST OF THE NEW DEBT IS $865 MILLION – The 5B debt increase is $484 million, but the total repayment cost, including interest, is $865 million.
THE NEW DEBT WILL BE REPAID WITH HIGHER PROPERTY TAXES – The school district estimates the new debt is paid for by higher property taxes ranging from an additional $11 million in 2024, up to an additional $53 million in 2039. All property owners, even those who have no students in the school district, will pay the property tax for the $865 million repayment cost.
HOW THE $484 NEW DEBT WILL BE SPENT – The major spending uses of the new debt are to add three new elementary schools and remodel two middle schools for $226 million, district education facilities capital maintenance for $126 million, fees and contingencies of $26 million, Legacy Campus for $17 million (formerly known as the Wildlife Experience), safety and security upgrades for $15 million, and other spending.
TAXPAYERS ALREADY BRACING FOR A TAX INCREASE IN 2024 DUE TO HOME VALUE REASSESSMENT – In 2024, taxpayers are bracing for a huge property tax increase as Douglas County residential real estate has been reappraised 40% to 50% higher. A $5,000 property tax bill in 2022 becomes a $7,500 property tax bill in 2024. A $6,000 property tax bill in 2022 becomes a $9,000 property tax bill in 2024. This 5B Mill Levy Override proposed by the School District would be paid for by additional taxes above this already massive property tax increase that Douglas County residential property owners are facing. [source]
WITH A POSSIBLE ECONOMIC RECESSION, AND HIGH INTEREST RATES, 2024 IS NOT THE TIME FOR A TAX INCREASE – Now is not the time to add additional property taxes on top of the already massive property tax increases that Douglas County property owners are facing. Individuals, families, and seniors are wrestling with increased costs at the grocery store, gas pump, utility bills, insurance, and maintenance. The New York Federal Reserve Bank’s Probability of a Recession indicator is at 60%, the highest level since 1981. [source]
QUESTION 5B IS TWO DEBT OFFERINGS BUT ONLY ONE APPROVAL BY VOTERS – The school district plans two borrowings for this new debt; the first is in 2024 for $250 million; the second is in 2026 for $234 million; since the school district is having trouble growing enrollment, this ballot question should be for the first $250 million only; the school district should come back to the voters in 2026 for the additional $234 million so voters can get past any economic recession and then assess the student enrollment trend in 2024 and 2025.
DOUGLAS COUNTY SCHOOL DISTRICT DEBT IS RATED Aa1 BY MOODY’S – The Aa1 rating is the second highest credit rating on the Moody’s ratings scale. There is no credit watch or credit warning in place for the school district and no financial crisis is expected.
VOTE NO ON QUESTION 5B
Now is not the time for an additional property tax increase for Douglas County property owners. Vote NO on $484 million of new debt for a school district that projects zero growth through 2030.
VOTE NO ON QUESTION 5B
Now is not the time for an additional property tax increase for Douglas County property owners. Vote NO on $484 million of new debt for a school district that projects zero growth through 2030.