Economic Impact of Hospital Loss on the Library & Schools

[T Peppard]

At one of the previous council meetings I expressed concern about maintaining the quality of the library with the impending $1M hole in income tax revenue due to the loss of the hospital. President O'Leary stated that the library had a different source of funding and would not be affected. Can anyone clarify this statement and explain the exact impact of the income tax loss on the library and the schools? Once the rainy day fund runs out, I assume they will raise our property taxes to compensate.

[Stan Austin]

The Library's primary source of revenue is the property tax not the income or payroll tax.

[Michael Deneen]

The impact will initially be felt by the city budget.

During the campaign the Mayor indicated that one of the ways the city will compensate for the hospital loss is via increased property tax collections.
Naturally, that is not how he phrased it.
He said that "rising property values" will create extra revenue.
(A large portion of property tax goes to the city...the schools are not the only recipient of those funds).

"Rising property values" sounds good to voters...until they get their increased assessment. That increased assessment takes more dollars out of their pocket. (Tim Liston has posted extensively on this, he is welcome to chime in)
The county, which also gets a big chunk of those property taxes, is the one that does the assessing. They have a built-in incentive to maximize your home value...and the city rides their coattails.

So basically we are seeing a tax shift from income tax (which is shared by non-residents that work here) to property tax (paid only by Lakewood residents).

There is one important impact on the schools and library.
As those property tax bills rise, it will become more difficult to pass tax levies. Schools need tax levies to keep up with inflation... but many residents have fixed or limited income, and cannot afford to keep paying more.

[Lori Allen _]

Not sure if this has anything to do with it, but it is worth noting that the library board members are picked by the school board members.

One big happy family!

[Stan Austin]

Lori-- In Ohio the public libraries are in effect subsidiaries of the local school boards. It probably goes back to some logic of both entities being involved in education.

That having been said, I think that the Lakewood Library Board of Trustees over the years has been steadfast in their individual and collective devotion to Lakewood Library. They may come from the group of activists that have continually populated Lakewood's civic life over the many past decades. However, that does not diminish or negate their individual or collective devotion to the Lakewood Public Library.

Stan Austin

[Jim O'Bryan]

Once the rainy day fund runs out, I assume they will raise our property taxes to compensate.

Actually they are secretly working on privatization of various city services. shhhhhhhhhhhhh no one knows!

Taxation without representation is what they will do.

Privatize garbage costing us $250 more pe house and keep the $4.5 million they use for it now to other general fund stuff.

They have totally broken the city.

As in "Slaughter of Cities" we will begin to hear a lot of, "Well we have to, but it is best for..."

Break the city, divide up the booty, sell off to developers.

.

[james fitzgibbons]

What does it take to fund a recall on Mayor Summers and most of City Council? I will donate. Like you said Jim it is only get worse this summer.

[T Peppard]

So basically we are seeing a tax shift from income tax (which is shared by non-residents that work here) to property tax (paid only by Lakewood residents).

There is one important impact on the schools and library.
As those property tax bills rise, it will become more difficult to pass tax levies. Schools need tax levies to keep up with inflation... but many residents have fixed or limited income, and cannot afford to keep paying more.

Thank you very much Mike, and everyone else for your responses and clarification.

The hospital provided a rainy day fund like no other! So the moment it runs our and our property taxes rise, more constituents will open their eyes to the significance of this loss and the harm our leaders have caused. Constituents already see that the ER/Urgent Care is not what they were told it would be.

I am fully in favor of removing all parties involved in this debacle so that we can move forward with trust in our leaders. There is no reason we cannot perform a true RFP and do all that we can to restore our resilient hospital. Even with the decanting plan, it remained strong! Nothing can replace that.