No free lunch in kindergarten

 

Since 1989, parcel 421367289000 in Hamilton, has been in Loudoun's land use program. Adjacent land with agricultural use is tinted tan, and in conservation use, green.

Since 1989, a 146-acre parcel (#421367289, outlined in blue) in Hamilton, has been classified as open space in Loudoun’s land use program. Adjacent parcels in agricultural districts are tinted tan;  nearby conservation districts are green. (Source: Loudoun County).

Virginia Delegate Randy Minchew (R-10th) has again introduced a bill to substitute land use values for fair market value (FMV) when the state of Virginia computes the local composite index (LCI) that determines how much money localities like Loudoun County get from the state as “basic aid funding” for education.

Minchew, of Leesburg, works as managing partner for land use attorneys Walsh, Colucci, where he “serves as Managing Shareholder of the firm’s Loudoun Office. Primarily working in land use and zoning, he has successfully represented a number of clients in obtaining the necessary approvals for a variety of cases, including major residential, commercial, and mixed-use projects,” according to Walsh, Colucci’s web site. http://thelandlawyers.com/j-randall-minchew/

Wording of the 2016 version of the bill is identical to the 2015 version. It was defeated last year in an education subcommittee by two votes, 10-12.

The bill would  require the state to use the lower “use value” of land classified as open space, agricultural, forestal or horticultural use. Loudoun’s share of funding for education would then increase, while the share for other localities would decrease under the LCI formula, according to a 2015 impact statement by the state department of planning and budget.

On Jan. 1, 2015, the total taxable value of 5,146 parcels in land use programs was $2,001,731,280, according to Loudoun County. At a tax rate of $1.135 per hundred dollars of value, they reduced the county’s tax revenue by  $22,719,650.03. In Loudoun County, frequently characterized as the wealthiest county in the nation based on median household income, a significant portion of real estate west of Route 15 has “land use” status and as a result, lower real estate taxes.

https://www.loudoun.gov/DocumentCenter/View/111539

Just one example is Parcel ID 421-36-7289-000, a 146-acre tract in Hamilton that is vacant. According to county tax records, fair market value of the parcel in 2015 was assessed at $1,323,500. However, as “open space” in the land use program, its taxable “use value” is assessed at $44,730. The 2015 tax bill was $507.70. If the parcel had been assessed at fair market value, the tax bill in 2015 would have been $15,021.70.

In 2011, when FMV of the parcel was also assessed at $1,323,500, the land use value was assessed at $5,170 and the tax bill was $66.44. The property, located in Lincoln, is owned by the family of late Loudoun General District Court judge, Julia Taylor Cannon, and has been in the land use program since 1989.

http://reparcelasmt.loudoun.gov/datalets/datalet.aspx?mode=valuesall&sIndex=0&idx=1&LMparent=138

In 2013, the state department of planning and budget used 2014 data to estimate the fiscal impact of state support for FDK in Loudoun at $2 million per year, with an increased local cost of $2.6 million per year, without considering capital and operating costs.
https://lis.virginia.gov/cgi-bin/legp604.exe131+oth+SB1153F122+PDF

Loudoun Schools Superintendent Eric Williams on Jan. 7 presented a $1 billion budget that sets aside $9.5 million to expand full-day kindergarten.

http://www.loudountimes.com/news/article/loudoun_superintendent_proposes_1_billion_budget432

With the additional funding, full-day kindergarten would be offered to 75 percent of all LCPS students.  Currently, 35 percent of students are offered full-day kindergarten, according to the Loudoun Times Mirror.

Virginia House of Delegates: House Bill 191 (2016)

Composite index of local ability-to-pay; use value of real estate in certain localities.
Va. Del. Randy Minchew (R-10th), chief patron.

SUMMARY AS INTRODUCED:
Composite index of local ability-to-pay; use value of real estate in certain localities. Requires, for the purpose of determining the state and local shares of basic aid funding, that the composite index of local ability-to-pay or “local composite index” utilize the use value of all applicable real estate (i) devoted to agricultural use, horticultural use, forest use, and open-space use in each locality that has adopted an ordinance by which it provides for the use valuation and taxation of such real estate and (ii) used in agricultural and forestal production within an agricultural district, forestal district, agricultural and forestal district, or agricultural and forestal district of local significance in each locality that provides for the use valuation and taxation of such real estate, regardless of whether it has adopted a local land-use plan or local ordinance for such valuation and taxation.

Virginia House of Delegates: House Bill 1514 (2015)

Composite index of local ability-to-pay; use value of real estate in certain localities. Va. Del. Randy Minchew (R-10th), chief patron.

SUMMARY AS INTRODUCED:

Composite index of local ability-to-pay; use value of real estate in certain localities. Requires, for the purpose of determining the state and local shares of basic aid funding, that the composite index of local ability-to-pay or local composite index (LCI) utilize the use value of all applicable real estate (i) devoted to agricultural use, horticultural use, forest use, and open-space use in each locality that has adopted an ordinance by which it provides for the use valuation and taxation of such real estate and (ii) used in agricultural and forestal production within an agricultural district, forestal district, agricultural and forestal district, or agricultural and forestal district of local significance in each locality that provides for the use valuation and taxation of such real estate, regardless of whether it has adopted a local land-use plan or local ordinance for such valuation and taxation.

Virginia Department of Planning and Budget: 2015 Fiscal Impact Statement

If land use value is substituted for fair market value in the Local Composite Index (LCI) formula, “The changes to the LCI for FY 2016 would create an overall state general fund cost increase of $1.9 million. Individual localities would have increases or decreases, depending on how the LCI change impacted the amount of their required local share.

“Since the LCI is a measure of a locality’s ability to pay for the cost of public education, utilizing the use value will lower the property values in the participating localities and reduce their required share. Urban localities and rural localities which minimally participate in a use value program would see their local match amount rise, since the LCI is based on each locality’s share of the total state value.”

Seventy divisions would see a decrease in their LCI value (resulting in increased state funds) and 58 divisions would see an off-setting increase (resulting in decreased state funds).

“While the bill notes that the adjusted composite index should be applied to basic aid funding, this fiscal impact is based on all state K-12 funding that is distributed based on the LCI.”

Supervisors ask state for more money. 

On Jan. 6, the Loudoun Board of Supervisors voted 7-2 to ask the state of Virginia for additional funding to pay for full-day kindergarten:

I move that the Board of Supervisors seek additional state financial support in order to enable the county to accelerate the full phase-in of full-day kindergarten in Loudoun County in a fiscally responsible manner while limiting class sizes.

— Motion by Loudoun Board of Supervisors Chair Phyllis Randall (At-Large), Jan. 6, 2016. Seconded by Vice Chair Ralph Buona (Ashburn). Amended by Matt LeTourneau (Dulles).

https://www.loudoun.gov/webcast-archives

About loudounhoa

News, information, and commentary for people who live in HOAs in Loudoun County, Virginia.
This entry was posted in Ashburn Supervisor Ralph Buona, BOS Chair Phyllis Randall, Dulles, General Assembly 2016, Loudoun Board of Equalization, Loudoun Board of Supervisors, Loudoun Circuit Court, Matt LeTourneau, Va. Del. Randy Minchew, Virginia Ethics Commission, You pay so they don't have to. and tagged . Bookmark the permalink.

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