Proposed sales tax increase not likely

By Staff
Jonathan Willis
The Russellville City Council is looking into options that would allow them to help the cash strapped city school system.
One possible source of funding that has been mentioned is the addition of a one cent sales tax. That increase, however, does not seem likely to happen soon.
Superintendent Don Cox told council members two weeks ago that the system is "basically broke."
By the end of September, the system will have depleted all of its reserve funding, which is required by the state.
The school board is already looking to borrow more than $500,000.
Cox said the school system has 270 employees, including 190 certified teachers, with a $1.4 million monthly payroll and for the first time in many years, the system has no teaching slots funded by local funds.
Cox told council members that three things are creating the school's problems: proration, no reserves and a reduction in local support. He said the system ranks 90th out of 131 in the state on amount of local support they receive. Nine years ago, Russellville ranked 25th.
The additional one-cent sales tax increase has been mentioned as a possibility, but now appears to be unlikely – at least for the time being.
"As far as raising the city sales tax, I can say it has been discussed, as well as other options, but I don't think we are ready to vote on that or any option until we get further into our budget," Councilman Jeff Masterson said.
"But let me also add, if we ever vote to raise the sales tax to nine percent, like all other Shoals cities, it won't be just for education. We've got employees and retirees who need raises along with a city that the voters asked us to improve, and that takes money. And back to the schools, we can say we are supportive but at some point, we as a town, are going to have to be committed if we're going to uphold the standards set before us."
Councilman Gary Cummings said he believes the timing is wrong for any tax increases, but he is committed to finding a solution that would allow the city to help the school system.
"I went to Grandparents Day at the schools last week and it was great," Cummings said.
"Our teachers and administrators are all doing a great job to give our kids and grandkids the best education they can. I have the utmost respect for everyone in our school system and I am committed to finding a way to help them."
Cummings said that a tax increase has been one of the first items mentioned, however, and he wants to see all the options that are available.
"I don't want to rush into anything," he said. "I am not going to vote for a tax increase unless there are no other options available to us. But right now, there is not a business in Russellville that's not hurting because of the economy and this would be another thorn in their side."
Councilman Lanny Hubbard also said that he would vote against any proposed tax increases.
"Gov. (Bob) Riley said the worst thing you can do during a recession is to raise taxes," he said. "I agree with that 100 percent."
Hubbard also said the community should be involved with any decisions made regarding taxes.
"We have to look at every possible option and get input from the community," he said. "We are going to do whatever we can to help the schools, but a tax increase is not the thing to do at this particular time. I definitely would not vote for it."
Councilman David Grissom agreed that he would also be opposed to a tax increase at the time.
"I have discussed this with school administrators and board members, fellow councilmen and local business owners and citizens," Grissom said.
"I do not know what the best solution is at this time but whatever we do must take into account the best interests of all the citizens of Russellville."
Grissom said the sluggish national and local economy make this a particularly bad time for any increase in taxes.
"Some have suggested an increase in sales tax but I personally do not think that is the solution at this time because of the hard times so many our citizens are having," he said. "A sales tax increase will hurt those who can ill afford any increase in the costs of food, clothing and school supplies in addition to possibly putting our local merchants at a competitive disadvantage."