The Tax Increase: Sufficient For the Day Is the Evil Thereof
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.
