Wednesday, March 29, 2006


Growing Education Levies

The Senate version of the reappropriations and corrections budget allows for growing (up to 4 percent) education levies. While the change won't address all of the remaining problems in the education finance system, it will provide some relief. The proposal could help schools a little with the phased-out tangible personal property tax. That is, if voters are willing to approve growing levies.

A link to the Plain Dealer's summary of the Senate bill is below.

The Senate also changed (reduced) a carve out in the new enacted commercial activity tax (CAT). The House version would have reduced CAT collections by $73 million. Senate changes would result in $37 million in lost revenues. Governor Taft threatened a veto of the House provision, but it unclear if he will accept the Senate changes. CAT revenues are earmarked for schools and local governments as a replacement for lost tangible personal property tax collections. While CAT collections are ahead of estimates, any shortfall in CAT collections (which are earmarked for schools and local governments) will be made up by other general funds taxes.

Hummm. Allow for increased property taxes, and cut business taxes. Have we seen this is pattern before?

Gongwer's News Service suggests the House is expected to concur in the Senate changes.

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