By Dr. David McGehee, Lee's Summit R-7 superintendent

The Lee's Summit R-7 School District is very fortunate to be a partner with the Lee's Summit Economic Development Council and our supportive business community. Like families and businesses throughout the nation, our school district faces economic challenges and is working diligently to ensure a quality education for our students while consistently looking for ways to cut back on our expenditures. We have already made spending cuts this school year and have close to $7 million in budget reductions under consideration for the 2009-10 year.

We continue to be concerned about our district's two major sources of revenue - local property taxes and state funding. At the state level, we are carefully monitoring activities in the General Assembly and are working closely with our elected officials. At the county level, we are also working closely with Jackson County officials regarding potential changes in property assessments. Both residential and commercial property will be reassessed by the county this spring. As you know, our school district is heavily dependent on local revenue, receiving approximately 68 percent of its budget from local property taxes. For this reason, we continue to be concerned about the effect that any lowering of property assessments may have on our schools. For example, last summer our district suffered a $3.4 million revenue shortfall due to late notification by the Jackson County Assessor's Office of greater than anticipated decreases in property assessments. This resulted in significant budget reductions this year, although we were able to emphasize cuts that had as little impact on the classroom as possible.

Although we are concerned about how reductions in property-tax revenue will impact our schools, we have been encouraged by the willingness of Jackson County officials to meet with us and address our concerns. County Executive Mike Sanders and Assessor Curtis Koons have met on several occasions with our district and are also participating in large-group meetings involving superintendents and school leaders from throughout the county. We have appreciated Mr. Sanders' and Mr. Koons' willingness to listen and address problems within the assessment procedures. Like taxpayers everywhere, our goal is that all property be accurately assessed.

These county/school meetings remain productive, and I am hopeful that properties within our district will be fairly assessed and not lowered at a level below what is reflected in the market. Significant and unwarranted lowering of property assessments could greatly impact our district's revenue as well as the R-7 tax levy. During times of prosperity and rising property values, state law requires our district to roll back its levy as part of a cap on the amount of money school districts may gain from reassessment. State guidelines, in turn, allow taxing entities to re-calculate and roll up their tax levies in reaction to drastic declines in property assessments.

Initial reports from Jackson County have indicated that residential property will experience a greater decline in assessed value than commercial property. I believe a problem could be created for commercial property owners if declines in residential assessments are so significant that the decline in total assessed value of all property is lower than the previous year. If our Board of Education were to approve an allowable roll up in the levy as a result of the overall lowering of assessed values, some property owners could see an increase in their school property-tax levy without the decreases in assessment that is realized by others. Ensuring that the residential property assessments are based on fair and acceptable practices can deter a need to increase the tax rate, thus avoiding additional tax burdens on property owners.

It is important for business owners to be aware of this situation and join me in urging county officials to be cautious about lowering residential property too dramatically and basing reassessments solely on the last quarter of 2008, which may not represent the property's true value. If residential property values are assessed utilizing appropriate data and commonly accepted practices, I believe that a tax rate increase could be avoided. It is unfathomable, even in these economic times, that the combination of new construction values and existing property would be less than the previous year's total. Again, remember that an increase in the overall total assessed value of the district can lead to a lowering of the overall tax rate. The ultimate goal is that all property is assessed at its fair market value, thus impacting each taxpayer in a reasonable manner.

. Fortunately, our district has emphasized conservative and strategic budget planning for many years, and we are prepared to address these issues with sensitivity to the students and families we serve. Close to 80 percent of our district's budget is staffing costs, and we are looking at opportunities through attrition to reduce staffing in an effort to avoid employee layoffs. Our school district is committed to maintaining fiscal stability through these difficult times. You can assist us by helping us spread the word about the budget cuts we have already made, those we are planning to make and our constant emphasis on stewardship. Although recognized as one of the state's and nation's top school districts, Lee's Summit R-7 continues to be an excellent value. Our district operates with a cost per pupil below the average for all Jackson County public school districts as well as below the average for Missouri suburban school districts.

Thank you again for your support of our district's schools and students.

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