I wrote about this lawsuit a while back. On March 21, when this case goes to trial, the sky will be covered with black clouds, looming over us with the possibility for the fiscal dissipation of our state. As I wrote earlier this month:
The basis of their claim is this. The Alabama Constitution limits the amount of property taxes that can be levied, and also requires a vote of the people before they can be raised. They claim that this limits the amount of money that can be spent on education and discriminates against poor, black children.
If they win, all such limits disappear, and cities and counties, not to mention the state, are free to raise property taxes as they wish. No limits. No approval by the voters required. And we all get to watch our property taxes skyrocket while the quality of our education system stays exactly the same.
The judge involved here, U.S. District Judge Lynwood Smith, appears poised to rule in favor of the plaintiffs here, and order the state Legislature to "fix" the property tax system sometime in the coming year.
How many think he won't do it?
The issue is a simple one. State law requires voters to approve any property tax increases. How can that be discriminatory when the minorities involved have the same right to vote on those increases as anybody else? I caution you, don't try to understand the mentality of the looters.
But as you can see, the limiting factor here isn't any alleged discrimination in state law, it's that the voters don't want to pay the higher taxes that the plaintiffs clearly believe we should pay.
The state's best argument may be that Sumter and Lawrence counties, where the children who are plaintiffs attend public schools, can raise property taxes. Lawrence County could raise almost $15 million more for schools, while Sumter County could raise about $5 million more, the state says.
But voters there have refused to do so. Lawrence County voters rejected proposed tax increases of 3 mills and 11 mills in 1990 and 1992. In 2006, Sumter County voters, about three-fourths of whom are African-American, crushed a proposed 15-mill tax increase.
"The essential truth is that citizens of Lawrence and Sumter counties and their elected representatives have opted to have lower property taxes than plaintiffs would like," state lawyers wrote. "Plaintiffs need to take their complaint to their elected representatives, not to a federal court."
I perceive a likelihood that Judge Lynwood Smith may well rule in favor of the plaintiffs, thus triggering the deluge and forcing this state into a massively disruptive argument. If the plaintiffs ultimately win and the voter approval requirement for property tax increases is lifted, watch for property tax rates to rise dramatically, up to 1000% or more in some places.
And, I guarantee to you, that money will not improve the quality of education received by children in this state. Spending on education in this state has doubled from 1997 to 2009, but the quality of education has not improved to match the extra spending. A massive influx of tax revenue will not help, because the major problem isn't lack of funding, it's poor teaching.
One of my daughter's teachers once told her, "If you want to learn anything, sit in front. Otherwise, sit in the back." Wonderful attitude, and a perfect example of the problems that exist in our education system. Oh sure, we have some fairly decent schools and teachers, but the rest drag down the numbers. Throwing money at the problem won't fix it.
What do you think massively increasing property tax rates across the state will do to the state economy? Don't you think all those tax dollars being taken away from individuals and businesses to pour into state coffers MIGHT have an adverse effect on our economy? Heck, property valuations are still rising in the state, even though real estate values are ACTUALLY dropping like a rock. If you pile soaring property tax rates on top of that, you'll know what I meant about a "looming storm" threatening the fiscal viability of our state economy.
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