In the aftermath of the Jordan School District's split into the new east-side and west-side districts, new tax assessment and student enrollment information show the west district faces a $16 million shortfall. That's because the new east-side district, home to 43 percent of the original district's student population, will take 57 percent of the original district's property tax receipts with it once the split is complete in July.
The new numbers, given Wednesday to the west district's transition team by Burke Jolley, deputy superintendent for business services in the existing district, also showed a marked advantage for schools in the east district. Before the district was divided, combined funds from the general and capital revenues amounted to $1,453 per student. After the split, the amount will be $1,948 per student in the east side, and $1,101 per west-side student. Jolley said the west district would have to raise taxes to the highest, legal limit in order to maintain its general fund at current levels after the split. Even then, revenue for the general fund would fall short by $300,000.
He stressed his projected tax impact figures were calculated using only assessments controlled by school boards, and using current tax rates and revenue figures. The projections don't consider future bonding, or equalization funds contributed by other school districts to soften the split's blow.
The projected disparity was galling to Ralph J. Haws, chair of the west district's transition team, which has negotiated with the east district's team on a fair division of district assets.
"It's not difficult to see from the data - and I know the east-side transition team will disagree on these numbers - that the remaining school district for West Jordan will absolutely be in a diminished financial position," he said.
The projections amount to more bad financial news considering the east-side team's request that assets between the two new districts be split evenly. Representatives for the west district said they will need millions for construction of new schools to house a student population growing faster than that of the east district.
Steve Newton, chair of the east district's transition team, said the numbers are misleading.
He took umbrage at a graph comparing assessed property tax values per student after the split showing that the new east-side district's valuation per student would rise to $525,431, while the west district figure would slump below the state average of $362,785 to $296,977.
Newton said that even with that fall in valuation per student, the west district still remains in the top tier of the "big six" Utah districts serving two-thirds of the state's students, above Alpine, Weber, Davis and Nebo.
Newton also disputed the dollar amount each student would receive in general and capital funds under the split. Add the state's equalization and add-on funds to that amount, and the west district's amount per student rises from $1,101 to $1,515.
"Not only are they held harmless, they're held harmless at a level higher than comparable districts serving two-thirds of the students," Newton said.
What's next
Mayors representing residents from the Jordan West School District will present a compromise plan designed to avoid likely arbitration between the two transition teams to the west-side's transition team Friday morning. If arbitration still looks likely, each transition team must pick one individual arbitrator for a three-person panel by Sept. 1. Those two arbitrators, in turn, will pick a third by Sept. 15.


