Senate Committee Approves Property tax for Schools


The Senate approves property tax for schools without the need for massive constitutional reform. Proponents of constitutional reform declare that to adequately fund schools, the constitution needs to be completely overhauled. However, we find that the Senate can produce more taxes, including local taxes, independent of a complete constitutional rewrite.

By PHILLIP RAWLS

The Associated Press


MONTGOMERY, Ala. (AP) -- A Senate committee gave its overwhelmingly approval to legislation that would allow Alabama voters to decide whether to raise their property taxes to support public schools.

The 10-1 vote Wednesday by the Senate Finance and Taxation-Education Committee isn't a sign the bill is going to fly through the Legislature. Teacher lobbyist Paul Hubbert, who supports the bill, said it will be difficult with only seven meeting days left in the legislative session.

The legislation, sponsored by Sen. Gerald Dial, is a constitutional amendment that would allow Alabama voters to decide if they want to levy an additional one-half of one percent on each dollar of taxable assessed value of property. That amounts to a five-mil tax, which would cost the owner of a $100,000 home an additional $30 a year, assuming the owner used Alabama's homestead exemption.

The legislation would raise an estimated $150 million per year, which would be divided so that two-thirds goes to K-12 schools and one-third to colleges and universities.

Dial, D-Lineville, said it wouldn't help with the current cutbacks in the education budget, but would build a sounder financial future.

"Now with the downturn in sales, our tax growth has been reduced significantly. This has produced hardships in all areas of education. What we must have is a more stable mix of revenue for education," he said.

Under Dial's legislation, all city and county school systems would share in the new money initially. But after two years, those school systems that have not raised their local education taxes to 20 mils would be cut out. More than half of Alabama's school systems would have to increase taxes.

Dial, a former high school coach, said his legislation is an incentive for cities and counties to do a better job of supporting their schools. Alabama ranks far above the national average in state tax support for public schools, but near the bottom nationally in local tax support, he said.

Committee Chairman Hank Sanders, D-Selma, voted for Dial's bill, but he said some poor counties without 20 mils of property tax could end up losing out on any of the revenue after two years.

In some poor counties, black children primarily go to public schools, and white children usually go to private schools. "It's a sad fact," Sanders said, that the racial division in schools makes it difficult to get voters to increase local property taxes for public education.

Copyright 2001 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Alabama's Great Seal


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