Council hears about ‘Penny Tax’ referendum

By Donna Riley-Lein
Independent Staff Writer
Posted 2/4/10

ROBERTSDALE, Ala. — The Robertsdale City Council heard a lot about school funding at its session Feb. 1. All members with the exception of Brent Kendrick were present.

Lester Smith, the Baldwin County Board of Education’s Director of Human …

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Council hears about ‘Penny Tax’ referendum

Posted

ROBERTSDALE, Ala. — The Robertsdale City Council heard a lot about school funding at its session Feb. 1. All members with the exception of Brent Kendrick were present.

Lester Smith, the Baldwin County Board of Education’s Director of Human Resources explained to the council the need for the “Penny Tax” referendum that will be held March 23. If passed, the tax will add one per cent to the sales tax, generating $1 for every $100 in purchases in the county.

“Baldwin County has always wanted more than the state could provide,” said Smith. That has led to the county coming up with money for new schools, more programs and more teachers. Smith says it’s why many people choose to settle in the area.

Unfortunately, money from Alabama’s “wealthiest” counties (Baldwin is one) is taken by the state and distributed to other school systems. That and several rounds of “proration,” where the state takes back money it previously budgeted for the schools, caused by the tumbling economy has put Baldwin schools in a financial fix, Smith said. He said that proration is nothing new.

“This is the 19th time (that proration has happened) since 1950,” Smith told the council.

Smith said that the system has been told to be “content with less” by state officials, Smith said

Smith painted a bleak picture of what will happen to the system if the referendum does not pass. He added that the system has already had to tap its line of credit to make payroll.

“Without the Penny Tax we will be $31.3 million in the red by 2012,” Smith said.

This means possibly consolidation schools, loss of teachers and staff, according to a handout Smith gave the council.

Theresa Bryant, principal of Robertsdale High told the council that failure to pass the tax jeopardizes extracurricular activities for about 800 students, including athletic and band programs.

“The kids need something to do after school,” said Bryant.

Smith added, “This is not a scare tactic. This is reality.”

City Engineer Greg Smith asked Lester Smith if there was a “more stable” source of funding besides the sales tax. Lester Smith replied that a property tax would be more stable, but that the schools were in a bind now, and a property tax would take time to implement.

Smith added that the “Penny Tax” would stay in Baldwin County and would expire in three years. He said that members of his Bible class expressed skepticism about that, but he told the council that the tax will expire in three years.

“We’ve got something great and we want to keep it,” said Smith. When asked if more central office staff could be cut, he said the Baldwin system was “fifth best in the state” in controlling those costs.

A delegation of students from Robertsdale High asked the council if they could have one of the city's days at the Baldwin County Coliseum for the Junior-Senior Prom.

Senior Roanna Council, and juniors Gabby Kendrick and Dillon Everett waited nervously as the council voted to give RHS March 27 for the prom.

The council also approved the selling of three city-owned trucks that Public Works Director Scott Gilbert said will not be needed by the city. The trucks will be auctioned on the GovDeals.com Web site.

“It’s a neat Web site,” said Gilbert assuring the council that the condition of the trucks will be detailed. According to Gilbert, many municipalities and other organizations use the site to sell unwanted or unneeded items.

The council voted to sell the trucks and to purchase two light-duty trucks for the Public Works Department. While one truck was already in the budget, Gilbert was confident that the proceeds from selling the old trucks would almost cover the cost of the new trucks.

The council voted to give Gilbert permission to buy the trucks

Chief Financial Officer Ann Simpson presented an “opt out” program for city employees who were covered by another insurance plan. According to Simpson, the city pays $367 per month for employee health insurance. Under this plan an employee who is already covered by another plan can choose not to be covered by the city. The employee will receive $183.50, half the premium each month and the city would save the remaining $183.50.

The council voted to accept the plan.

The council also approved the minutes of the last meeting and $86,474.08 in bills