People Against a Casino Town
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School district losses - $3 million in taxable tribal land

 
In looking at the loss of revenue from tribal lands, the district estimates that if the land owned by the Confederated Tribes of Grand Ronde were taxable those property taxes would contribute approximately $3 million toward repayment of the bond.

Note:  The Confederated Tribes of Grand Ronde are owners of the Spirit Mountain Casino in Grand Ronde.


School district 'loses' $3 million in tribal land

A report below this column about the amount of money the Willamina (Oregon) School District will be losing in taxes from tribal lands is one reason why it's going to be an uphill battle to pass a $12 million bond next month for more classrooms and sports facilities.

October 12, 2005, The Sun, Oregon
By Mary Faith Bell
Correspondent, The Sun

When the Willamina (Oregon) school district asks voters for $12 million to expand and remodel schools in November every registered adult within the district will have the opportunity to vote.  But not everyone will be asked to pay the property taxes that will result if the levy is approved.

The proposed bond has raised the issue of the inequity of tax base funding in a district that includes untaxable land owned by the Confederated Tribes of Grand Ronde.  Untaxable lands are not an issue in the funding of school operations because the state pays for each child enrolled.  The federal government further subsidizes public education with special programs such as Title 1 for reading, Title 9 for Native American studies, and free and reduced lunches.  But when it comes to asking voters to raise their property taxes to pay for school buildings, the burden falls on property tax payers.

The bond will cost property tax payers $2.79 per $1,000 for 21 years, or $279 a year for the owner of a $100,000 home.

The amount of the bond is determined by the district, based upon what it will cost to do the proposed work.  The rate of the bond is established by calculating the property revenue in the district.  Factored into the equation are property values, population, tax rates and areas of taxable land.  A district that includes tribal lands will generate less revenue.

About 23 percent of students in the Willamina school district identify themselves as Native American.  That is 217 students out of a total of 959.  The state average is 2 percent.

In looking at the loss of revenue from tribal lands, the district estimates that if the land owned by the Confederated Tribes of Grand Ronde were taxable those property taxes would contribute approximately $3 million toward repayment of the bond.

Superintendent Gus Forster described the process the district used to arrive at the $3 million figure.  His administrative staff looked at all of the property in Polk and Yamhill counties within the school district by going through tax lots.  They identified the nontaxable lands owned by the Confederated Tribes of Grand Ronde and calculated the revenue those properties would generate if taxed given the current assessed value.  They multiplied that amount by 21 years it will take for the bond to mature and arrived at $3 million that the Confederated Tribes will not contribute in property taxes toward a $12 million bond.

The entire burden, therefore, falls on property tax payers who do not live on tribal lands.

Las winter the Willamina School District submitted an application to the Spirit Mountain Community Fund for a $3 million grant for school improvements to be matched with a $9 million bond.  Forster and former school board chairman Bill Willis made a presentation to the tribal council in march of 2005 explaining what the schools need and why they were asking the Spirit Mountain Community Fund to pledge $3 million.

In May Forster received a letter from the interim director of Spirit Mountain Community Fund, asking the district to reduce its request to $1 million.  Thereafter the district submitted an application for a $1 million grant.  The request was denied in July.

Since then Forster has received a letter from the Spirit Mountain Community Fund suggesting that the district submit an application for a grant of less than $100,000.  That letter indicated that the Community Fund might be interested in funding some portion of the proposed new sports complex.  Total cost of the sports complex as designed is $869,000.  Forster plans to complete that application this week.  



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