Citizens For A Better Norwood

Wednesday, June 30, 2010

Supt. Amodio: Duke Energy cuts NCS tax payments by $384,000

This past May, Duke Energy reported its 2010 1st quarter earnings jumped 29%, earning the company $445 million in profit compared to $344 million in the year-ago quarter. "We're off to a good start, but there's a lot more to do," said Jim Rogers, Duke's chairman, president and CEO. In what appears to be a move to further increase profit, Duke Energy is reducing its property tax obligations by $40 million per year while it appeals the state valuation of its personal property The impact on local government entities has been described as “staggering.”

Following is NCS Superintendent Rob Amodio’s account of exactly how Duke’s plan will negatively affect Norwood students:

Duke Energy Corporation is reducing its property taxes to Norwood Schools by $384,000 (or about $175 per child) next school year. Duke Energy Corporation took this action as part of its overall plan to reduce its property tax obligations by $40 million per year.

Duke’s strategy to increase profit from 2009’s $1.1 billion comes at a time when Norwood’s students will experience a $1.7 million reduction in programs and services next year. Norwood’s students were already going to experience larger classes and fewer instructional programs because of $1.7 million in cuts needed to balance next school year’s budget. Duke’s strategy and its late notification to the district make it even more challenging to implement cuts for a school year that begins in about nine weeks.

· Duke plans to reduce its tax payments to Norwood City Schools by $384,000 next year.
· Norwood Schools has already implemented $1.7 million to balance its budget.
· Duke has increased Williams Elementary electricity cost from between 5.8% and 8.4% since 2007.
· Dukes Energy stock price is up 15.64% since June, 2009.
· Duke Energy profit jumped 29% in the first quarter of 2010.

The Norwood City School District does not believe that the reduction in taxes is warranted and is concerned about the impact on students, and other taxpayers. The district believes that Duke Energy Corporation should pay its taxes and rely upon the State of Ohio process for tax assessment.

Rob Amodio
Norwood City Schools