BAY MINETTE – When Baldwin voters go to the polls Tuesday, they will have to decide how they want to pay for educating children.

They can vote to continue a special 1-cent sales tax. Or they can face higher ad valorem taxes in the future.

“If the penny tax doesn’t succeed, property taxes will have to go up, eventually,” said Baldwin school superintendent Alan Lee.

The “penny tax” raises about $28 million in local funding for the school district, which serves almost 30,000 students. But because it is a sales tax, the entire burden is not on Baldwin County residents. When tourists come and buy T-shirts, rent condos and hotels, buy gas or go out to eat; they pay the 1-cent sales tax. The tourism industry and snowbirds are effectively subsidizing the schools.

“People come down from Ohio and don’t think a thing about paying another penny to eat out and have someone throw a roll at them (referring to Lambert’s restaurant),” said Lee.

Over the past month, Lee has made more than 100 presentations on the penny tax. He has spoken at schools, community centers, churches, civic clubs and anywhere else he was asked. Lee said the overwhelming response has been people recognize the importance of schools and education.

Economic crisis

Lee’s time in Baldwin County has been tied to tough times and the penny tax. Due to the world economy faltering in 2008, the district saw a drop of $60 million in state and local funding. The special 1-cent tax was approved in March 2010. The Gulf oil spill happened in May 2010. Lee took over as superintendent in July 2010.

The first week on the job, he had to meet the assistant state superintendent of education in an attorney’s office in Malbis. It was then he was informed the school district only had $750,000 in the bank.

“The state wanted us to have $16.5 million in the bank, the equivalent of one month’s payroll,” said Lee. “The 1-cent sales tax helped us get the fund balance up to $24 million.”

But getting to that point was a long, hard process. Positions were cut countywide. Discretionary spending was curtailed.

Even in a shoestring budget, the district kept schools open by spending about $8,200 a year per student. That is over $1,600 less than the state average. In fact, Baldwin County ranks 93 out of 132 school districts in the state. Many school districts average more than $10,000 per student. During the 2010-11 school year, Homewood spent a staggering $12,700 per student.

Penny tax history

The world economy recession not only affected state sales tax revenues, it also lowered property values. Local officials knew something had to be done but raising property taxes was a long process, said Denise D’Oliviera.

“Getting a sales tax passed was more expedient, so in the fall of 2009, officials started talking,” said D’Oliviera, the campaign director for Invest in Progress. “It was an emergency measure, a stop-gap until we could see what we could do.”

The current penny tax expires in May 2013. Earlier this year, school supporters went out and had 85 community conversations to see what the people wanted.

“We conducted a poll in April and 70 percent said they preferred to keep the penny tax over an increase in ad valorem taxes,” said D’Oliviera.

The Baldwin County Commission considered holding a referendum, but there was not a majority of the four-man group in favor of putting the issue to the voters.

Instead, the county’s legislative delegation had it put on the ballot at the same time as the general election.