COSTA MESA : County Fee to Cost District $750,000
The Newport-Mesa Unified School District faces a $750,000 funding shortfall because the county is charging that amount as a service fee for collecting the district’s property taxes.
The shortfall will delay the board’s scheduled repayment of $4 million over three years to a special reserve fund, said Supt. John W. Nicoll.
In February, the Orange County Board of Supervisors voted to begin charging districts for collecting taxes in order to reduce its own deficit.
Although Newport-Mesa has joined other districts across the county to fight the decision, officials were forced to budget about $800,000 to pay for the service.
Nicoll said the supervisors’ decision to take the money up front leaves the district short of anticipated revenue, but the policy makes sense for the county. “They’re struggling just as we are,” he said after Tuesday’s school board meeting. “Instead of collecting the taxes and sending us the bill, they’re collecting it at the source.”
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