Santa Clarita School Tax Dead : State High Court Refuses to Hear Districts’ Appeal

Santa Clarita Valley school officials expressed disappointment and frustration Thursday after the state Supreme Court let stand a lower court ruling that voided a special tax on new development to build schools.

“Obviously I’m not happy,” said Clyde Smyth, superintendent of the William S. Hart Union High School District, one of five valley districts that had hoped to collect millions of dollars from the tax, which was overwhelmingly approved by voters in 1987.

The tax, roughly $6,300 on each new home, was declared unconstitutional by a state Court of Appeal in November. A three-judge panel said it was illegal because it unfairly applied only to future residents of the Hart, Newhall, Castaic, Saugus and Sulphur Springs school districts.

The appellate court also said the tax exceeded a state limit on developer fees. State law allows districts to collect $1.50 per square foot on new homes for school construction.

Court Refusal

The Supreme Court refused Thursday to hear the districts’ challenge to the appellate decision.

Sandie Loberg, president of the Hart board of trustees, said the Supreme Court failed to respect the voters’ wishes. “I think the voters made a statement in this community,” she said. “I find it extremely discouraging.”

The court’s decision leaves the valley’s schools with few funding alternatives, Loberg said. “Where it goes from here I don’t know,” she said.

School officials estimate that the valley will need $210 million by 2000 to build four high schools, four junior high schools and five elementary schools to absorb more than 15,000 new students. Present enrollment is about 22,000 students.

On Tuesday, Hart trustees said the valley’s school districts may have to ask residents to tax themselves to pay for new schools in the rapidly growing region. The Supreme Court’s decision will obviously force the districts to consider such a tax proposal seriously, Smyth said.

A school tax would require two-thirds approval to pass, he added.

Moreover, the Santa Clarita City Council recently agreed to place a tax measure on the November ballot to raise money for new roads. That proposal, which would increase annual property tax bills between $75 and $200, must be approved by the Los Angeles County Board of Supervisors to reach the ballot.

The tax on new development, although struck down Thursday, funneled some funds into Santa Clarita Valley’s schools.

While some developers refused to pay the tax pending the outcome of the lawsuit by the California Building Industry Assn., other developers paid it, agreeing not to seek a refund if the tax were declared unconstitutional. The Hart district alone received $10.5 million from four developers building new homes in the valley.