Search This Blog

Wednesday, January 12, 2011

"Taxing" Problems for Albuquerque Charter Schools

Every April 15th working Americans must file their federal and state tax returns.  These taxes allow our government to provide basic services to the citizens.  Our state taxes allow state government to provide for education, corrections, police, roads, and water for New Mexicans, all essential for a healthy, robust, quality of life for those who are lucky enough to call the Land of Enchantment home.

However, we have also created a system where local government is taxing state government!  This is reducing the amount of money available to provide these essential services.  It creates larger than necessary budget shortfalls, and it places one group of students at a decided disadvantage when compared to other groups.  This taxation is in the form of property taxes charter schools must pay that districts do not pay!

Article 8, section 3 of the New Mexico Constitution reads “all property used for educational or charitable purposes … shall be exempt from taxation”.  However, county assessors continue charge charter schools (in leased facilities) commercial property tax rates on these facilities used as schools.  In fact, a 1955 Attorney General opinion (#6171) concluded that “it is not the purpose of the organization, but it is the use made of the property that is controlling”.  This opinion was further supported by two court cases.  The first, in 1967 ruled that “use, rather than ownership, is determinative as criteria for exemption from tax liability”.  And, a 1972 Court of Appeals case found that “It is the use of the property, not the declared objectives and purposes of its owner, which determines the right to exemption under this section”.

In light of these rulings, it is unfortunate that the county assessors continue to assess taxes against charter schools that lease facilities – eating up operational dollars that would otherwise be used in the classroom to educate kids.  In the case of the Southwest Learning Center, this practice is costing taxpayers in excess of $36,000 annually and places the school and the students who attend at a disadvantage in terms of per-pupil funding.  This is money that would otherwise go to classroom instruction.  In fact, $36,000 is enough to hire another teacher or two additional educational assistants for an entire year. 

So, next time you hear that charter schools receive more money per student than their traditional school counterparts, refute this with facts.  Fact one, charters actually receive 98% of what traditional schools receive per child.  Fact two, charters must pay for facility costs from operational dollars, something traditional districts don’t have to pay.  Fact three, charters must pay insurance and utility costs from operational dollars something else districts do not pay from operational dollars.  Fact four, charters must pay property taxes, an expense no other public school in New Mexico must incur – and a violation of the New Mexico Constitution!

To discuss this or other issues affecting charter schools with your state representative and state senator, please go to: http://www.sslc-nm.com/links/  and click on the link to “Find Your Legislator” and enter your zip code.  Then, call and write to let them know that charter schools are an important part of the educational options in New Mexico and that you would appreciate their support of charter schools.

3 comments:

  1. I am a parent of a student who attends Eldorado High School. After following these entries and issues, I can begin to understand why the charter schools are so frustrated. I have not been happy with public school but I am not so upset to leave either. But I just can't believe the stuff the charters are dealing with. Do the Principals at regular schools have to jump through so many hoops as well? If so, it begins to become apparent why we have such a dismal educational system in this city.

    I, for one, am sorry you have to continue to deal with this.

    ReplyDelete
  2. I am learning more and more everyday about what Charter Schools go thru with this informative blog! Way to go SSLC. I know you are a great school - I just had no idea what a constant uphill battle you are facing behind the scenes.

    ReplyDelete
  3. It certainly looks like charter schools are under siege again! I came across an article today on KOAT TVs web site that ran yesterday about APS wanting to close all its charter schools because they are not cost effective due to the number of students. I posted the following on their site and thought I would share it here with the SLC blog members:

    This is so typical of APS and school boards across the state. I realize that dollars are all important, but a blanket decision to close all charter schools based on dollars is short sighted at best. A charter school (or traditional school for that matter) should only be closed when it fails in its primary mission: educating our children. How have these APS charter schools faired? Do they make AYP each year? Are they graduating students who go on to college and are prepared to compete in this global economy? Are we forcing 3,600 students (a very conservative estimate based on APS’s own numbers) from high performing schools to attend overcrowded and under staffed APS Schools?

    The point of the “small school model” emulated by many charter schools was to avoid the pitfalls that are associated with schools serving 3,000 students when they were built and are still staffed for only 900. This is an obvious attempt by APS to pull a “smash n dash”, but instead of smashing a store window and stealing a radio or T.V. set, they are instead smashing an educational model that has been under attack for years, and stealing their funding.

    ReplyDelete