Why I’ll be voting “AGAINST” the Sales Tax Referendum

As you may know by now, a Sales Tax Referendum question will appear on the November ballot in Lenoir City. Here is the exact language that was approved and will appear on the ballot requesting a “FOR” or “AGAINST” vote -

“In order to provide funding for additional and improved security for safety of students, faculty, and staff of Lenoir City School System, shall the Ordinance adopted by Lenoir City which increases the local sales tax rate by one-half of one percent (½%) be approved?”

Before I get into the reasons of why I will be voting “AGAINST”, I want to say that my position is one that is against a system of how business is typically conducted in our city, not against Increased security. While I will present verifiable facts, my opposition should in no way be construed as an attack on any particular person or group of people, but a stance against the status quo.

Having two daughters enrolled in local public schools and a wife in the teaching profession, I am keenly aware of the need for school security. In fact I haven’t met anyone yet who is opposed to providing a more secure educational setting for the children and educators of our community, but I have met scores of folks who are concerned about the plans developed by the school system, or the lack thereof and what many consider to be an unreasonable request.

At one public meeting, Lenoir City Schools Superintendent, Dr. Jeanne Barker spoke about the plans that had been developed by the task force for the increased security measures, which included things like fencing at the high school, electronic entry systems, and additional staff. According to a document given to me by Dr. Barker, the proposed measures totaled an estimated an approximated $1.4 million (keep in mind that the tax increase will garner an estimated$1.89 million).

These costs can easily be broken down into two basic categories; upfront capital improvement costs and ongoing staffing costs. According to the cost breakdown provided by Dr. Barker, the upfront capital improvements would cost around $800,000, while the ongoing staff costs would cost around $600,000. To me the major issue with this sales tax increase request is that there is no plan for the estimated $1.2 million + that will be remaining after the capital improvement are completed.

Since that particular public meeting where the city council unanimously approved that the referendum appear on the ballot, there has been lots of chatter echoing the same concerns I have. In the September 26th edition of the News-Herald it was reported that there will now be a memorandum of understanding between the city and the school system, stating that the new funds will go solely to the school system for safety purposes. After seeing the fiscal shell game that took place with the Rain Tax, maybe the citizens weren’t convinced that the whole $1.89 million would make it to the school? There is also language that will end the tax after three years, but will automatically renew each successive year unless the city or the school system provide a “notice of non-renewal” by a certain annual deadline.

Essentially we as citizens are being asked to overfund a security project by approximately $3.0 million over the course of three years, then trust that city or school system officials will pull the plug on their newfound revenue stream. If you believe that a government entity will be willing to voluntarily decrease their budget, then I’ve got some oceanfront property in Arizona that I’d like to sell you. There will always be something to spend money on. Much like a person who raises their lifestyle after receiving a raise at work, the school system will find a way to spend the money.

People want and deserve to know that their hard earned money is being spent wisely. I recently had dinner with a retired local school official who is still heavily involved with school districts all across the state. This person (who I would consider an expert on school system administration), stated that there was no way Lenoir City Schools could spend nearly $2.0 million annually on school security. Keep in mind that the Lenoir City School System only consists of 3 schools. Spending $5.67 million for $2.6 million worth of undeveloped plans doesn’t sound wise to me.

If this tax increase passes, our tax rate would exceed that of neighboring Knox County, and put us to within a .25% of the max allowed tax rate as set by the state. According to the latest census data, roughly 25% of the population of our city lives in poverty and relies on government assistance to simply get by. Any increase in a sales tax would have a direct negative impact on our most vulnerable families.

A sales tax increase would also have an impact on our local businesses. For those businesses who sell taxable goods in large volumes, their customer base may be forced to look at other vendors located in areas with a lower sales tax rate in order to maintain profit margins. Much like the Rain Tax, a sales tax increase is not business friendly.

Mayor Aikens told me at the July 9th city council meeting, that placing this referendum on the ballot was the fairest thing they could do. While I agree that we the voters should have the final say; we expect our elected officials to put before us fully vetted and fiscally responsible plans. I will be voting “AGAINST” and hope that you’ll consider doing the same.

Todd Kennedy
Candidate For Lenoir City Council