SWANTON - Swanton voters will see a five-year, 1.25 percent income tax request on the March ballot.
Board of Education members deciding last night between the income tax and a 12.2-mill, five-year property tax said they favor an income tax because it taxes only people making money and collections would increase if residents incomes go up.
The board voted 4-0 to ask for the income tax on the March 2 ballot.
The board also voted to borrow $1 million against future local property tax receipts to make payroll this month. Board member Mark Secory was absent.
Discussion was spirited when the board asked the audience of about 100 which levy it should request. Karen Reese, a mother of three, asked the board to reinstate classes for middle school students - some of whom now have more than two study halls a day - before it pays for extracurricular activities again if a March levy should pass.
Aaron Staup and Bernie Heller became upset and walked out when board members and administrators said they would not restore many cuts even if they levy passes in March. Both said outside of the meeting that they felt the school board had asked the community for too much money to build the new high school when it wanted more operating money as well.
The board needs to borrow $1 million to make payroll late this month and early next month, board president Bill Green said. The loan needs to be finalized this month from Farmers & Merchants State Bank and is expected to be at about 2 percent interest, board treasurer Jeff Price said.
The loan is expected to be structured so that the school receives $1 million next week and the final payback is June 15.
Board member Doug Lee said he hated to make such a loan because if the board s levy would fail in March, its financial problems would snowball. Voters have turned down three operating levy requests from the school board this year and all were less expensive than the 1.25 percent tax request.
“You re gonna dig a hole so deep you ll never get out, audience member Bob Westmark told the board. He said the board should have made cuts or passed a levy years ago to avoid its current situation. The board has cut teachers and combined classes after the first quarter.
School leaders had worried about making Friday s payroll before learning last Friday that enough receipts had come in to cover it. The district is $1.3 million in debt.
If the requested income tax passes, it would collect $2.2 million a year, and the board could operate in the black by 2007 if it would keep current cuts in place, school officials have said.
About a quarter of the crowd wore red, which several said was an attempt to show unity. Most were school employees.
Several employees and board members also wore ribbons in purple and white, the school colors, which some said was to show their support of the school.
First Published December 9, 2003, 3:14 p.m.