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East and West fight about finances
This is an archived article that was published on sltrib.com in 2008, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Stalled over disagreements about divvying up such things as school buildings and a bond, the east-side transition team born in the split of the Jordan School District has threatened to go to arbitration with its west-side counterpart. Elected officials from West Jordan, meanwhile, continue lobbying the governor for a special legislative session to put the split on hold for a year to re-examine the financial consequences.

None of this turbulence will prevent new board members for the nascent east- and west-side Jordan school districts from being sworn in today. It does, however, fuel a battle over numbers and financial estimates that has burned from the split's beginnings.

Not surprisingly, both sides disagree about the interpretation of estimates for school construction and renovation costs, as well as property-tax projections. What no one disagrees with is that the numbers have become a tool in the battle for assets as the split moves forward.

In their meeting with Gov. Jon Huntsman Jr. early this month, West Jordan officials warned of staggering financial consequences to their new district should the split proceed. Backed by numbers and projections showing their new district's student population will swell from today's 45,109 to 71,266 in 2016, they estimated a shortfall of $600 million to $800 million needed to build new schools. At the same time, they pointed to figures compiled by the original Jordan School District, projecting a 32 percent increase in property taxes for the west district - even as property taxes decrease 25 percent for the east side.

The delegation posted figures on the Utah Senate Web site at www.senatesite.com for public view, but the message to the governor was clear: If the split's financial sheets aren't adjusted, the east district will enjoy tax savings while the west's coffers shrink in the face of an exploding student population.

"If you think the credit crisis on housing now is bad, wait until people see their property tax bills rise by that amount. We'll see people with torches marching to City Hall," said Sen. Michael Waddoups, R-Taylorsville, a member of the delegation calling for a special legislative session. "The west side can't afford a 32 percent raise in property taxes."

The numbers alarmed former two-term Gov. Norm Bangerter, who said he questioned their accuracy with both the Jordan School District and a state legislative analyst. He's been critical of the school district split ever since. "I promised myself to stay out of politics when I left it 15 years ago," he said. "But this is something I think needs attention."

Kelvyn Cullimore, mayor of Cottonwood Heights and one of the split's original proponents, admitted he hasn't had time to study the numbers as much as he would like. That said, he takes issue with what he calls "spin" by West Jordan officials. Cullimore also disputes the $194 million estimate for east-side school construction and renovation used by West Jordan officials. A more accurate estimate for his district's needs is $600 million, he said. Take that into account, and the disparity in need between the new school districts shrinks, although, he acknowledges, it still leaves his side with more money and less need.

Zeroing in on the projected 32 percent increase in property tax, Cullimore notes that it applies only to a portion of the total property tax bill, excluding the state's basic tax rate on property and levies on recreation and debt. An increase on only a portion of the property tax results in a smaller increase than if applied to the total. Such numerical sleight of hand implies that property taxes will rise more than they actually would. Dollar figures are more meaningful than percentages, and the same table of figures used by the West Jordan delegation shows a total change in property taxes for West Jordan residents adding up to $55 on a $300,000 home.

"These [32 percent] figures are calculated for shock value. They only illustrate select categories to create the appearance of immense inequity," Cullimore said. "The real impact is negligible, which is what we've argued all along."

Burke Jolley, the Jordan School District deputy superintendent for business services who created the district split tax impact table at the center of the argument, said it was meant to show what both sides of the district would have to do to generate the revenue needed to maintain the original district's budget on a per-pupil basis - no more, no less. It doesn't reflect bonding needs, possible property tax increases, or facilities either side might decide they need in the future.

Jolley said his estimate of property tax increases after the split reflects only the portion of that tax controlled by school districts. As for Cullimore's complaint that east Jordan's school construction and renovation needs aren't accurate, Jolley said he believes those figures came from a November 2006 Jordan Growth Summit meeting.

Jolley said both sides will take another look at the numbers, but he'll gladly leave the debate to others. "Depending on how you define needs and wants, both sides' costs will increase," Jolley said. "No dispute there."

bfulton@sltrib.com

7 new members to be sworn in

Three new board members for the east-side district and four new members of the west-side district will be sworn in today in separate ceremonies.

* New east-side board members Kevin Craig Cromar, Paul J. McCarty and Monte L. Millerberg will be sworn in at 7:30 p.m. at Jordan District Offices, 9361 S. 300 East.

* New west-side board members Rick Bojak, Carmen R. Freeman, Richard S. Osborn and Leah Voorhies will be sworn in 6:30 p.m. at Elk Ridge Middle School, 9800 S. 3659 West.

One side says renovation and construction costs will be disastrous; the other side begs to differ
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