Wealthier Residents Mean Higher School Taxes in WindsorBy Noah Hoffenberg
iBerkshires Correspondent
12:33PM / Sunday, April 19, 2009
WINDSOR, Mass. — A reported one-time spike in the town's total wealth — likely because of an inheritance, insurance settlement or lottery winnings — is going to force the average Windsor taxpayer to dole out an extra $166 for their annual tax bill, according to some local watchdogs.
Residents learned of the major increase when the Central Berkshire Regional School District released its expected tax levy assessments last month. The school district's total tax levy only increased by 2 percent from last year, but Windsor's share increased by 14 percent, or $127,244.
For fiscal year 2009, Windsor paid $903,117 into the CBRSD; for fiscal 2010, it's $1,030,361.
Meanwhile, other towns in the school district saw much more modest increases, such as 3.16 percent in Becket and 5.96 percent in Hinsdale, for instance, and a drop of .16 percent in Dalton. The CBRSD adopted its budget
on March 12.
What threw Windsor off, said John Cramer, one of the concerned residents aiming to have the state adjust its wealth estimates for the town, was the addition to the tax rolls of someone with a huge spike in income.
"I don't begrudge anybody what's theirs, but when you get a town of our size, with several hundred wage earners, you throw a $10 million settlement in there, and all of our average income, it looks like we're wealthy," said Cramer, a parent with children in Berkshire Trail Elementary School in Cummington. "It's like when Bill Gates walks into a soup kitchen, he's surrounded by billionaires, if you take the average income in the room. That's what happened to us. We got Bill Gatesed."
From 2005 to 2006, the period used by the Department of Revenue to calculate the town's aggregate wealth, Windsor's total income jumped from $20 million to $30 million. The income, according to Cramer, dropped back to $23 million in 2007.
However, the state this year adjusted figures for all municipalities in the commonwealth, and the year with the cash spike was included. So far, there's no way out of having to pay more into the CBRSD budget.
"That's a 50 percent increase in income. That's huge. I don't blame the state for saying, 'Hey, you got to pay more.' It happened to catch us at a time when they were adjusting their state formula."
Resident Kate Markowitz told iBerkshires that she became drawn into the issue as a concerned parent of schoolchildren.
"I will not go into town meeting and advocate that we pass the school budget. And it won't a make a difference, but I think it's important that we stand up and say, 'No, it's not OK.' It's not fair,” said Markowitz. "The school district is letting us take the fall ,and I don't think that's right. This whole, 'That's such a shame for you,' is not acceptable."
The school budget overall for the seven-town district is tight, said Cramer, up only 2 percent.
Including transportation but excluding capital expenditures, for fiscal 2010 it's $25,843,284, according to School Committee member and Finance Committee Chairman Richard Wagner. Of that amount, the seven contributing towns pay $14,548,202, while the state picks up the rest.
The options for the town are few. Residents can use the town's free cash to cover the school district's bill; they can petition the state for so-called "pothole money," a reserve fund for school's below foundation spending, or lobby at Beacon Hill to remove the one-time hit.
However, Markowitz and Cramer were told that there is no pothole money available. Heath is the only other town in the state also facing the same issue, Cramer said.
Markowitz said that if enough towns band together and "make a stink," it may spur the state to take some remedial action, even after Windsor voters decide on the budget at town meeting on May 4. She didn't see
the voting in of the budget as a limitation on whether to receive state relief.
"My guess is that if enough people are upset and calling and writing letters, there probably isn't a time limit," said Markowitz.
The Board of Selectmen have not adopted a final budget yet, but expect to do so this week. As of now, it stands at $1.3 million, of which the schools constitute just more than $1 million. The total tax rate for the town won't be set until after the budget passes.
Markowitz is also not convinced that the hit Windsor taxpayers will be taking for the coming year will be one-time event. She expects a similar increase to the tune of about $50,000 for the following fiscal year.
Cramer said Cummington ran into a similar problem a few years ago, when one of the Teenage Mutant Ninja Turtles creators used the town as his mailing address.
Appeals to state officials have been lukewarm, Markowitz said. |
