La Conner’s unfair school funding system

The La Conner School District is promoting a 4-year special levy to be voted upon in February. Special levies are paid for exclusively by local property taxes. In La Conner only a fractional proportion of residents actually pay property taxes, the result of peculiar demographics and highly uneven, unfair tax laws.

Tribal members residing on the reservation are strongly encouraged to vote for school levies. They enjoy the benefits but have virtually no tax liability. Under federal laws, they pay no property taxes, no sales taxes, nothing. Shelter Bay residents – most of whom live on leased reservation land – are the largest voting bloc in the school district.

A disastrous court decision by the 9th Circuit in a case brought by Indian tribes (Great Wolf Lodge) ruled that properties on land leased from tribes cannot be taxed by municipalities. Consequently, thousands of dollars in annual property tax revenue were lost when Shelter Bay properties were summarily stricken from Skagit County tax rolls. This materially shifted property tax liability for funding local taxing districts like schools to remaining property owners, resulting in tax increases as much as 25%.

Subsequently, the Swinomish tribe imposed a property tax on Shelter Bay residents. They call it a “use and occupation” tax, but it is based on assessed values, thus it is clearly a property tax. Amazingly, residents willingly pay these taxes to the tribe without any representation or benefit. The tribe has a profitable casino that takes in millions yearly, pays no taxes and competes unfairly.

The tribe does not need the money. However, they continue to collect the taxes and do “contribute” a portion to support La Conner schools, although it is only a fraction of the former county collection/allocation.

Washington is also the only state among 29 that host one or more tribal casino monopolies that – because of corrupt, self-serving politicians – has chosen not to negotiate a revenue-sharing compact with tribal entities as authorized by federal law. The 28 states that have negotiated revenue-sharing compacts typically generate over $100 million/year to benefit state taxpayers. Because of this willful largesse, Washington State has left billions of dollars on the table that could have benefited taxpayers and public schools.

Washington has a constitutional duty to fully-fund basic education in public schools.

A multi-year long court case (McCleary) challenging the state’s duty and reliance on special levies was eventually settled.

The legislature increased the state property tax to fully-fund schools, generating over $1 billion annually in new money.

However, when this money was allocated to individual districts, the teacher’s unions, including those in La Conner, demanded – and got – the lion’s share in salary raises.

The hammer they used was the threat of strikes just before the opening of school.

Districts yielded to the pressures and granted salary increases that were termed “unsustainable” in future years.

And property owners/tax payers are still on the hook year after year to bail them out!

The school funding system – especially in La Conner – is terribly lopsided, uneven and unfair. Everyone eligible to vote for a special levy to support schools should be subject to paying “school taxes,” not just property owners.

Bruce Elliot

La Conner