The Tax Increase: Sufficient For the Day Is the Evil Thereof
Visited 911 times, 2 so far today Print This! | Twitter This!
Earlier this year, the public (correctly, in my opinion) revolted over a proposed 30% tax increase. The 2009 budget approved on March 3 (large file) contained expenditures that were unjustified in the current financial climate– a light rail study, GPS in county vehicles and $1.06 million for a “Go Green Initiative,” to name just a few of the items on the Commissioners’ wish list.
The increase was also going to pay, however, for some pretty important stuff– the equipping and staffing of three new fire stations; 58 new police officers and equipment; the reestablishment of the Quality of Life unit; and several prosecutors and investigators in the District Attorney’s office. (Pictured: Station 30 on Ozora Road in Loganville-Grayson; finished but empty)
Not only are those items in jeopardy, but the rejection of the earlier increase also necessitated additional service cuts beyond those already incorporated into the budget. For example, early retirements and layoffs have cut “back office” functions, like general administration and Planning & Development, to the bone, even after 108 positions had been eliminated in the initial budget. A planned pay raise has been abandoned as well.
The revised proposal will restore most of the cuts in public safety and the courts. In addition, it will fund the 287(g) illegal alien identification and deportation program which began on Monday at the county jail. Equally as important to some, but not all, is funding to restore reductions in library hours and open a new branch in Hamilton Mill; and pay for ballpark lights and field maintenance, expenses that are currently being borne by the county’s youth associations.
You can find a line-by-line accounting of what will and will not be funded by an increase at SaveGwinnett.com . I provide a little more detail here .
The millage increase that will be approved or disapproved on December 1 is not without its concerns. I believe that it can be reduced by as much as 32% (to as low as 1.55 mills from 2.28) by eliminating just two line items. You may oppose the increase in its entirety, but even if you favor the funding for public safety, the courts and recreation, you should question these expenditures.
Solving 2010 Problems With 2009 Tax Dollars
The tax increase includes two items totaling approximately $18.77 million, about one-third of the total hike:
2010 Deficit Reduction: Even with all of the budget cuts imposed earlier in the year; with additional cuts and deferments planned for 2010; and even if funding for public safety and recreation are restored, there remains a deficit of $9.7 million projected for next year. The Commission proposes to “pre-collect” enough revenue with this increase to mitigate or eliminate that shortfall.
Reduction in 2010 Digest: The Net Tax Digest (the value of all taxable property in the county) is projected to suffer another significant decline in 2010. This year, the residential side of the Tax Digest declined by over $1.5 billion in taxable value. In 2010, the weak economy is projected to hit commercial values, with the resulting loss in tax revenue projected to be $9,070,818. The County Commission seeks to compensate for the loss with this millage increase.
To my knowledge, the plan to address future year budget issues of this type with a current year tax increase is unprecedented. In my opinion, it is also unnecessary and ill-advised.
“Engage Gwinnett” Neutered
The “Engage Gwinnett” Committee, of which I am a member, has been charged with examining 2010 service levels and revenue sources, with the goal of helping to formulate a balanced budget that serves the needs of the community in a cost-effective manner. The combined 2010 deficit of $18.77 million is at the core of our committee’s charge. Our success will be measured by the reduction or elimination of this disparity between revenue and expenses.
While the Commission’s plan to address 2010 problems with 2009 tax dollars does not alter our process, it does eliminate a potential benefit of our recommendations– allowing the taxpayer to keep more of his money in his pocket. Even worse, the inclusion of these items in the millage increase tends to confirm an unjustified, but very real perception– that the Engage Gwinnett committee is a sham effort designed to give cover to politicians who just want to raise taxes.
The “pre-payment” of property taxes– especially in the current economic and political climate– will be difficult to explain. I cannot stand before the taxpayers next year to tout the committee’s plan to eliminate the 2010 deficit, only to have the taxpayers reply, “It doesn’t matter; we’ve already paid it.”
The inclusion of these items in the 2009 millage increase is no small matter– the proposed increase could be reduced to between 1.55 and 1.75 mills. The owner of a $200,000 home would see his portion of the tax increase lessened by as much as $73.
Speaking of `Political Cover…`
While I understand the desire to address 2010 problems now (there is always comfort in having money in hand), the decision to do so is purely political. The level of the tax rate is set by politicians, elected officials who usually want to be reelected. Sadly, the millage rate often has only a minimal relationship to the actual cost of your government.
Just as the County Commission adopted deficient tax rates for the past four years– contributing to the county’s current financial instability– purely for political gain, the Commission now proposes to OVER-tax you this year, simply to avoid the political ramifications should they have to impose a tax increase two years in a row.
The solution is simple– let’s worry about 2009 problems in 2009, and 2010 problems when– and IF– they arise. Let’s let the Engage Gwinnett citizen committee do its job. Then, if another tax hike is required in 2010, it will come only after the committee has given its best effort.
Your Weekend Assignment
I strongly encourage you to review the budget documentation, especially if you plan to attend the public hearings or contact the Commissioners. A reasoned and educated opinion always carries greater weight than an angry, uninformed rant.
As you might suspect, I have a very strong opinion about what the County Commission should do on December 1, the date of the final public hearing and vote on the millage increase. I plan to share that with you before Monday, November 23, when the first two public hearings will be held.
Excellent article Bob.
I have a couple of comments.
1. Why should the taxpayers of Gwinnett pay for the lights and field maintenance for Youth Sports? My children played football and baseball at a private youth organization “Tucker Lions” well known and well respected. Along with all the other parents we work very hard as volunteers, sold many fundraisers every year but received NO government money or funds. And we had scholarships for children whose parents could not afford it. I was astounded to hear that I’ve been paying taxes supporting all the youth leagues for 30 years. I knew the land and parks were built with taxpayer money but had no idea they were not self supporting.
2. Reduction in library hours and obviously poor judgment or political strategy in building the Hamilton Mill does not even have a valid argument in todays climate. The economy has been going down for 3-4 years not all of a sudden. The times have changed – we’re in a crisis. These are not essential services – very nice but not essential.
3. Salary increases suspended!!! Wow no one in my company which is in Gwinnett, has had a raise in 4-5 years folks. We’re grateful to have a job.
Keep up the good work in keeping us informed.
Thank you,
Dot
Good questions, Dot. Consider this:
The county and the youth associations have a great relationship. I am sure we can agree that the youth sports programs have great value. Think how much those programs would cost if the coaches, managers and volunteers were all paid county staff.
And yet, the youth associations cannot afford to build and maintain the fields and facilities. So the county provides the facilities, most of the maintenance and the utilities; while the youth organizations provide equipment and manpower.
The question does still remain– is youth recreation like football, baseball, soccer and cheerleading a service that government should subsidize to any degree? I am sure that you will find support for both sides of that question.
The library system is a much more complicated issue than you might imagine. About 10% of the library’s budget is funded by the state. As you might expect, that funding comes with some strings attached. The county is actually prevented by law from reducing its portion of library funding; if it does so, it risks losing the state funding.
Like the youth athletic programs, you will find some who consider the libraries to be an essential, core government service and others who do not.
I am with you on the pay raises. Now is not the time.
I concur that it is a well-written article and I also concur with Dison7341’s comments.
Like many, I have not had a salary increase for years and have been under the threat of lay-off even longer. I have seen the value of my home plummet as a consequence of the economy and also because of a free-wheeling, unresponsive county commission that rubber-stamped every zoning exception in sight. I have had enough of politicians lecturing me about what is in my best interest. (I am perfectly capable of determining what is in my best interest, thank you very much.) What is good for me and this county does not include whiny politicians who are unable to balance the budget without a tax increase (in the midst of the worst recession of our generation). This is a season where it is apparent we all need to make the most of what we have and postpone some things for better times. Any elected official arguing for a tax increase now might as well go sit in a closet and talk to themselves, since that is their likely office after the next election.
IMHO, the county commission created this situation with their poor stewardship and even worse leadership, and they are clearly being asked by the citizens of this county to devise a solution that does not include a tax increase. I am not even slightly upset at the prospect of my library hours being cut while we weather this storm, nor am I upset if the park hours are cut or the weeds grow a little higher. Threats to cut basic services, while continuing to fund pet projects and “nice-to-haves” are as transparent as the self-serving motives behind them.
My message to the county commission: Get a grip.