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A New Tax for Castro Valley? Let the Conversation Begin

School board members will begin discussing their initial questions and concerns about the possibility of a putting a parcel tax to a public vote in 2012.

The early stirrings of conversation about the possibility of a new tax for Castro Valley have begun at the school district, whose finances have been gutted by state failures over the past three years.

A discussion about parcel taxes—which are unlike other kinds of taxes because they can be applied directly to local schools without passing through state hands—is expected to get started "as a discussion item only" at the board's May 26 meeting. Last week, the board listened to an expert give them the highlights of lessons he has learned from past experience helping districts custom-build a tax structure that voters will approve and appreciate.

Latest trend: shifting from 'enrich' to 'something's really wrong'

"The building's on fire and we really have to do something," said consultant Brad Sender, paraphrasing the latest shifts in how schools talk to the voting public. 

In the 1980s and 1990s, schools used words like enrich, enhance and strengthen, he said. But since the recession began in 2008 and drastic budget cuts for education followed, schools are saying, "Something's really wrong and we have to try to do something," Sender said.

Piedmont and Menlo Park school districts have levied hefty parcel taxes for many years, helping to explain the high-quality education there. 

Castro Valley Unified School District, also an educational gem, so far has managed to avoid parcel taxes through effective management and successful school bond measures, and most recently by raising hundreds of thousands of dollars in donations through grass-roots efforts spearheaded by Save Our Schools Castro Valley.

Good schools make houses more valuable

Last week, Patch reader Michael Kusiak posted a comment tying school performance to property values. "CVUSD is why we bought here, and it's at the core of what makes CV a community," he said.

"As a temporary measure, maybe generating $100 to $300 per household with exemptions for seniors and lower income brackets would be a smart investment to serve as a stopgap until the revenue situation stabilizes," he wrote.

The school board so far is nowhere near proposing a parcel tax, let alone proposing one at that level of detail.  At the moment, board members are just listening.

The earliest action would be a decision to survey the community.

"A decision to poll is not a decision to hold an election," Superintendant Jim Negri told board members at their April 14 meeting. Negri has been through "about 10 of these" during his service at other school districts, he said.

Factoids and observations from experience

Here are some of the nuggets of information that Sender left with board members:

  1. A parcel tax passes with a two-thirds majority, not 55 percent as for bond measures.
  2. Most (but not all) districts levy a flat fee that stays in place for six to eight years.
  3. Parcel taxes are unrelated to property taxes in that they are a flat fee, independent of a particular property's value.
  4. Unlike with bond measures, districts can tailor specifics that will be palatable to voters. For example, seniors can be exempted. Large companies with many parcels can be counted as having a smaller number if the parcels are contiguous. Apartments can be taxed at a lower flat fee.
  5. Most parcel taxes in the state are in the San Francisco Bay Area. They are few in Southern California and rare in the Central Valley.
  6. Most parcel taxes start at a modest level of, say, $24 or $42. Over time, as parcel taxes become part of the local culture and residents remain happy with the quality of education, voters readily agree to higher rates on the order of $300, or even as much as $600 in some cases.
  7. Negative events in a school district's history stay in the public's mind, even if management and quality has been superlative in recent years.
  8. The Bay Area mindset is generally favorable to parcel taxes because residents appreciate that the money raised here will be spent here, rather than sent to the state for equitable reallocation to all schools.
  9. Women are more likely than men to favor parcel taxes when the economy is strong, but they are almost as unlikely as men when the economy is weak, as it is now.
  10. Most surveys are conducted by phone and include 400 people because that number offers a margin of error of 4.5 percent, which is considered standard.
  11. The surveys cover all types of decision-makers within the school district's boundaries, no matter whether they live in apartments or have children in school.

Sender suggested keeping an eye on the economy. "It does in fact look like it's getting better," he said.

School board member George Granger pointed out that voters have tended to be supportive of schools in times of crisis. For example, a bond measure put on the ballot shortly after Sept. 11, 2001, did better than expected, he said.

"It's scary times for education," Granger said. Districts around the state talk about "falling off a cliff," not "gradual impacts to programs."

Board member Jo Loss said, "I think people are more attuned than ever because the budget cuts have been so severe."

Rachel Bradley-Gomez April 20, 2011 at 03:16 pm
As a resident and home owner, I'm in favor of a parcel tax to bridge the budget gap. I also believe that while there is always room for improvement, the C.V.U.S.D. manages funds very well. As part of my emotional argument, I do have children who attend the district and am concerned about the quality of their education. Strictly, financially speaking, I'm also keenly aware that home values in Castro Valley are inextricably linked to the performance of the C.V.U.S.D. I support a parcel tax as an investment aimed at staving off further weakening of home values which would undoubtedly follow poor academic performance. I point to certain school districts which border Castro Valley for insight in to how home values can be directly, negatively affected by lower APIs.
Analisa Harangozo April 20, 2011 at 04:10 pm
Great points made... keep the comments coming!
Krista Richey April 22, 2011 at 11:24 pm
I am in support of parcel taxes as well. I don't believe the problem is
"with the school district is how the money is used. There is too much administrative overhead. This needs to be trimmed down. Cut expenses in the bloated school district management." This kind of belief shows that some people have no idea how the money is required to be spent by the state and federal governments. If the local districts had more control, we would have more money where it is most needed. This is why you sometimes see new buildings and "overhead" getting funding while class size grows and support staff is cut. the federal and state govts (that are broken) are clueless as to what each district and school needs but they get to make the decisions on how the money is spent. As with all government spending, budget cuts and problems, and all the restrictions that come with the mess, PARCEL taxes may just bridge the gap until it is all straightened out. If not, not only will our home values suffer, but our community, our future and our youth will suffer as well. Of course, we can keep pouring money into the penal system as that seems to get a lot more funding than education these days....
David Ross April 22, 2011 at 11:32 pm
"If the local districts had more control, we would have more money where it is most needed." You hit the nail with the hammer on this one. A major problem is that the federal government is way too involved in education. They have a "one size fit all" approach to education. And don't get me started on the fact that the federal government has no constitutional basis for being involved in education (or a myriad of other items).
Ken Martin April 23, 2011 at 05:54 pm
How about cutting out some of the "politically correct" classes and events, like ethnic studies and "Days of Diversity"? Most of this kind of stuff is created to appease one special interest or another. A lot of money could be saved by getting back to teaching more basic subjects designed to help students on career and family paths after they are out of high school. Leave all this other stuff to the students' families instead of indoctrinating them in school.
David Ross April 23, 2011 at 10:08 pm
You'll never make it as a politician, Ken. You make way too much sense. Schools should be for teaching the basics - the 3 R's.
If the school district wants to teach this political correct stuff then it should be done as an extra-curricular activity that is self-funded. In other words, no tax money used.
Steve Ontiveros April 26, 2011 at 06:40 pm
David & Ken,
Don't facts matter? Do you know how much is spent on these "politically correct" classes & events? What program would you bring back with the dollars you would save by cutting these "politically correct" events? Are you suggesting that learning about ethnicity and diversity don't have any value in Castro Valley Schools? It would be helpful if you would be more specific when you use the term "politically correct classes and events." Sure, you mentioned Days of Diversity - is that the only thing you're referring too? Are there particular bits of curriculum that is taught in the classroom that you object too?
David Ross April 26, 2011 at 07:49 pm
I'm not talking about bringing back any programs. I'm talking about emphasizing the basics.
Growing up, I was talk to respect others, regardless of color or religion. This is something that should be done at home and in church. The basics need to be taught BEFORE anything else is taught. Writing properly definitely needs to be emphasized. Take a look at any forum that kids use. The grammar and spelling is atrocious. Reading is a needed course. Social studies is a needed course and a course that needs to be taught correctly. Example: History needs to be told as it really happened. Don't sugar coat it. Math is another course that needs to be taught. When was the last time you had someone count your change back to you? Have you ever been at a store when the electricity went out and the cashiers couldn't figure out the tax rate or how much you owe?
Lauren Edwards April 26, 2011 at 10:34 pm
With the state legislature gutting school budgets the way it has over the past three years -- not trimming, GUTTING! -- there will be no basics, either, if somebody doesn't take charge and do something bold, as organizations like Save Our Schools Castro Valley and other parent groups have done. Diversity Week involved teen-agers using their extracurricular time to create, rehearse and perform for their peers during lunch time and professionals generously donating their time to give kids a wider world view. Don't blame schools' financial problems on "diversity." Those kinds of enrichment programs are the results of community caring, not rampant spending.
Steve Ontiveros April 29, 2011 at 02:23 pm
David: it seems that you've found some discrepancies in our history curriculum. Would you point them out, I would like the district to be made aware of this immediately.
David Ross April 29, 2011 at 02:49 pm
It appears, Steve, that you are referring to my statement "Example: History needs to be told as it really happened. Don't sugar coat it. "
I did not say I found a discrepancy in the teach of history. I said it needs to be told as it really happened and not in a politically correct way. Take the Civil War: Most curricula teach that the main reason for the war was the issue of slavery. It wasn't. Yes, slavery was one of the reasons but the main reasons were economic and the rights of the states.
Steve Ontiveros April 29, 2011 at 03:56 pm
You would agree that it's really economical to run a business where your entire labor force was made up of slaves. You would also agree that it makes sense that those states that had the most concentration of slaves would have the most to loose economically if they lost their "state right" to own slaves. So I guess I'm agreeing with you that the economics of slavery and states rights related to slavery would be motivations to go to war. I disagree that this is sugar coating or politically correct, when it's just plain fact.
Matt Rempel May 9, 2011 at 06:01 pm
If a school is short on funds, why not just tax the people who have the kids in that particular school. The services are for those families and kids anyway right? If I don't have kids in that school, why should I have to pay? You should pay for the services you use.
David Ross May 9, 2011 at 06:18 pm
Matt: That's why you'll never get elected to public office. You make just too much sense. I've never had children. I'm tired of paying for the schools that aren't educating children.
What's especially disgusting is subsidizing college students. Where does it say in the Constitution (state or federal) that a person is entitled to a college education? If a person wants to go to college than that person should pay for it.
Rachel Bradley-Gomez May 9, 2011 at 07:27 pm
Well, I think that's a marvelous idea! Of course, if individual home owners opt out of investing, in all fairness, they should also be made to scoot their parcel out of district boundaries which means that you can look to Hayward median house prices to determine your new property value. Just sayin'.
David Ross May 9, 2011 at 07:43 pm
The current method of using parcel taxes is entirely unfair and extremely regressive. Because it's a flat rate and not a percentage, the person with a $1,000,000 house will have a tax rate that is only 1/10 of the person who has a house that is worth $100,000.
Matt Rempel May 9, 2011 at 08:00 pm
Rachel - So I should have to keep paying just to live in a school district that I may not even be using? If I aleady paid more for a house (and taxes) in Castro Valley instead of Hayward, why shouldn't I reap the benefits of that? Will I be reimbursed when Castro Valley schools crumble and start to look more like Hayward or San Leandro?
Steve Ontiveros May 9, 2011 at 08:56 pm
y parcel taxes, but don't ride AC transit. I pay parcel taxes but don't frequently use local parks. I pay parcel taxes but (thankfully) haven't had to make use of a fire truck. Let's keep this in perspective folks, 60% of school funding comes from personal and business income taxes accross CA. 10% from the Feds, and kick in a few paltry lottery % dollars. In an econmic downturn, the reduced income and business tax returns have a far greater effect on school funding tha parcel taxes. Parcel tax income represents a mere 23% of school income.
And, let's not forget, our home values are directly related to the success or failure of the school district. David: Where in the constitutiton does it say that say that a person is entitled to an elementary / middle / high school education? Why are you drawing the line at College?
David Ross May 9, 2011 at 10:00 pm
They aren't mentioned.
I consider a high school diploma to be something vital. I think we are paying too much for what we get, though. College is a different story. In the first place, contrary to what the "experts" say, not everyone should go to college. Secondly, I think colleges should be subsidized by business. They are the ones that benefit from college educated people. Lastly, I think it would be best for students to take a year or two off from education, get a job, and save for college. This accomplishes a couple of things. One is that if the student has to spend his own money on his education then he is going to appreciate it more. Second thing it accomplishes is that it shows the student what real life is all about.
Ken Martin May 9, 2011 at 10:22 pm
Hey, here's an idea! How about charging a "Per Child " fee? Not a tax, that would have to be voted on, but a fee. It could be levied using the county birth records and would be paid only by households that have children that will eventually be in school or that are already there. Then there would be no more pestering of families without school age children about a regressive and unfair parcel tax!!!
Rachel Bradley-Gomez May 10, 2011 at 02:25 am
Once again, I will point out that the Castro Valley Unified School District is one of the most prominent assets of this community. I can't imagine a Castro Valley with schools that perform on par with some of our depressed neighboring cities. There's so much more at stake than the education of our youth, as important as that is. The schools brought my parents here, kept me here and in turn compelled my husband and I to cough up a substantially higher mortgage than we would have of otherwise. The domino effect is that our decision to pay more was wholly driven by the quality of the schools in C.V. which in turn bolstered the value of a whole lot of other properties in my neighborhood. People I don't know, and probably many without school aged children benefited from us purchasing our home. Why isn't that worth considering? It's logical to conclude that allowing our district to flounder without funding would lead to the opposite effect, a mass exodus of the "bread and butter" of this community, good folks with good income, hastily moving in to other districts that will better serve their kid's needs and provide the quality education that C.V. once did. Home values will subsequently decline in lock step with school performance. There is no question about it. I'm amused by the myopic view of the residents weighing in, who believe that their lack of school aged children makes them immune to such consequences or shall I say, just deserts.
David Ross May 10, 2011 at 11:46 am
It's also a myopic view to say that if the school district is good then all is well with the world. There's more to a community than schools.
What good is a good school district if there is a high crime rate? Lousy roads? High taxes? It is also because of people that are willing to pay inflated prices for their houses that others cannot afford to purchase a house. This child-centric view so many have is ruining the nation. With everything geared to children, we are raising a generation of self-centered kids.
Joanne Montesano May 10, 2011 at 01:27 pm
Why is it always the homeowner who gets hit with taxes/fees, etc. when some agency needs money? There obviously are school age children who live in rental houses and/or apartments whose parents don't contribute, with the possible exception of a raise in their rent. Perhaps Ken Martin has hit on a more equitable plan. Prop. 13 came into being because of endless raises in property taxes, and much as some of you younger people hate it, it has allowed many not to lose their homes because of property taxes that continued escalating. Every time the State Legislature needed money they upped property taxes.
It almost seems as if school districts are bottomless pits. More and more money provided them and more and more money needed. I don't know what the solution is, but I do know that over the years ballot referendums have raised our taxes for the local school district and I'm not eager to have it happen again.
Matt Rempel May 10, 2011 at 01:51 pm
I think its amusing that these schools and teachers have no money, yet their unions have millons to pour into political contributions. Why don't you go after some of that money?
David Ross May 10, 2011 at 01:59 pm
I have a solution for each teacher to immediately get about a $1,000 a year raise: quit the union.
Unfortunately, the state of California has determined that people do not have the right to work in certain industries unless they join a union.
David Ross May 10, 2011 at 02:03 pm
Contrary to popular belief, we who live in rented houses or apartments do pay property taxes. True, we don't pay it directly. It is part of our rent. Do you really think that landlords are so generous that they just eat their increased property taxes?
In today's child-centric, government union ruled world, it is considered sacrilegious to deny schools money. After all, it's for the children.
Steve Ontiveros May 10, 2011 at 03:49 pm
I love details. I also love this conversation! Why don't you take a stroll over to Pleasanton (virtually of course.) They recently had a special parcel tax vote before voters. Here is the exact language of the parcel tax in question. What do you think? How would you vote on this if it were in Castro Valley?
http://supportpleasantonschools.com/Read_Measure_E/
David Ross May 10, 2011 at 07:28 pm
I would vote "no."
Rather than continuously requesting money from people, why not take an h0nest look at the schools (or other entities) and determine where there is wasteful spending. There are way too many taxes being imposed now. I picked several hoses at random on the Alameda County Assessor's office. There are 13 CSA ST LIGHTING CV SAN SEWER SVC MOSQUITO ABATEMENT CSA PARAMEDIC CSA VECTOR CONTROL PARAMEDIC SUPPLMNT ALA CO CLEAN WATER FLOOD BENEFIT 2 CSA VECTOR CNTRL B MOSQUITO ASSESS 2 AC TRANSIT MEAS VV EAST BAY TRAIL LLD HARD - PARK MAINT I live in the part of Castro Valley that, unfortunately, is in the domain of the armpit of the Bay Area - Hayward. We have 14 assessments (the additional one is for Hayward USD). One thing that bothers me about Pleasanton Measure E is the citizens oversight committee. The committee itself is a good idea. I do not think the committee members should be appointed my the Board of Education. That's akin to asking the wolf to pick out the guards for the hen house.
Rachel Bradley-Gomez May 10, 2011 at 08:24 pm
I love that the prospect funding the Castro Valley School District has gotten hackles up, yet when it comes to $8 million worth of flowers, polished landscape rocks and benches along the boulevard, there's hardly a whisper of dissent amongst C.V. citizens... except to complain about the inconvenience.
You want to talk about a horrendous waste of tax payer money? Where is that money coming from, anyhow? Oh, that's right, the money fairy. Couldn't possibly be tied to your taxes or mine. And while I like pretty flowers as much as the next person, it's a horrendous, and utterly shameful waste. That 8 million would have gone a long way towards closing the district's budget gap and would have served as a real, tangible investment in our community. Austerity my arse! Living within our means, bah! Who's calling the shots? I didn't sign up to pay for millions of dollars worth of highfalutin landscaping. Meanwhile, this comedy of errors has only caused suffering to what little commerce there is in Castro Valley. And it's simply preposterous to assume this $8M "beautification" project will result in anything except further tax increases - taxes better spent on meaningful investment or not at all. And no, this will not result in a business renaissance. Sorry. I hear crickets chirping. Not a hint of cavalier commentary about why in this time of economic duress, we simply can't afford such frivolity. Glad to know Castro Valley has it's priorities straight.
David Ross May 10, 2011 at 08:34 pm
Sounds like I'm not the only one who as been against this street "beautification" project. I've been against it since the beginning.
I love the way politicians and bureaucrats say that it won't raise taxes because the business along the Boulevard are being assessed a fee for this boondoggle. Evidently these "wise people" don't realize that businesses do NOT pay taxes. Any taxes they are charged are passed onto their customers. I like the idea of there being a fee for kids to go to school. Let those that benefit directly pay directly. They will appreciate it more. As it is, people think sending there kids to school doesn't cost them anything.

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