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February 11, 2009

Tax decision postponed

Commissioners put off Cullman Savings Bank purchase

By Patrick McCreless

staff writer

It seems the passage of a half-cent sales tax for the Cullman County school system may depend on the details of President Barack Obama’s proposed stimulus package.

“We’ve talked about it (tax) and we’re also looking at what the stimulus package offers ... then based off that, we’ll make a decision on what to do,” said Cullman County Commission Chairman James Graves.

The commission briefly touched on the subject of the half-cent tax during their regular meeting Wednesday.

“It’s just a wait and see game,” said Commissioner Wayne Willingham.

Willingham said according to the latest information he has received from Rep. Robert Aderholt’s office, the stimulus package could have approximately $300 billion set aside to fund education in various ways across the country.

To Graves and Willingham, sufficient education funding from the government would negate the need for a local sales tax, at least for the foreseeable future.

Cullman County School Superintendent Hank Allen, who was present at the meeting, said he was not upset by the commission’s decision.

“Well, I think they’re still in consideration mode, which is in our favor,” Allen said. “I think there is still an opening there. Overall, I was pleased with the response.”

Allen personally requested the commission pass a half-cent sales tax for the county schools during a previous meeting. Allen said the tax was needed to offset a 9 percent cut in state funding for public schools.

Under Alabama law, county commissions have the authority to pass taxes, as long as the monies are relegated exclusively to their local school systems.

For Cullman County schools, the cut means approximately $580,000 less per month, with a total loss in 2009 of $5.25 million. Allen said 2010 fiscal projections are even worse — with possibly $800,000,000 less statewide in the Education Trust Fund than what is available for 2009.

A half-cent sales tax would generate an estimated $3.2 million per year.

Graves said he would join other county commissioners from across the state in Washington D.C. around early March to meet with Aderholt and discuss the details of the stimulus package.

In addition to postponing a decision on the sales tax, the commission also postponed a decision on whether to purchase the Cullman Savings Bank building. In a previous article of The Cullman Times, Graves said the commission planned to buy the building and would likely approve the approximately $6 million purchase during their Wednesday meeting.

“Nothing has been agreed to,” Graves said during the meeting. “We’re still in negotiations.”

Graves said the county needs a new building to create additional space for the revenue commission and probate offices.

“We desperately need the space and we have for years,” Graves said.

Along with the bank’s close proximity to the Cullman County Courthouse, Graves said the building would be a good choice because of its parking deck and drive through windows, which citizens could theoretically use to purchase vehicle tags and other items without having to exit their vehicles.

In a previous article, Cullman Savings Bank President John Riley said if the purchase is approved, the bank would purchase some county-owned property on the block south of the courthouse — where it will build a new facility. Riley said the bank has doubled in size since 1998 and needs room to expand.



‰ Patrick McCreless can be reached by e-mail at patrickm@cullmantimes.com or by telephone at 734-2131 ext. 270.

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