Property values should not become a political issue. A “fair market value” is just that.
The news media is reporting that because of falling property values, government will fall short of revenue. This is simple not accurate. Regardless of the value of the property tax digest, local governments use a millage rate to calculate tax collection.
During periods of economic growth, when property values are soaring and sales tax collections are high, county officials can either lower millage rates and pass the tax savings on to taxpayers or they can leave the rate the same and spend even more of our money.
During periods of economic growth, when property values are soaring and sales tax collections are high, county officials can either lower millage rates and pass the tax savings on to taxpayers or they can leave the rate the same and spend even more of our money.
Likewise, when the economic bubble burst, the millage rate can be adjusted upwards to meet current spending levels or budgets can be cut.
The millage rate has become political hot potato. Politicians love to brag that they have lowered our tax rate by an infinitesimal amount such as 0.03 mills. But, what they fail to tell us is that they have increased spending and you will not see any real reduction in taxes.
During these growth periods, government should look for ways to cut wasteful spending and build a reasonable fund balance for future needs. Instead public officials, drunk from the infusion of additional cash, spend it all and tell use they need even more.
Now they tell us that they have tightened their belts and cut out “unnecessary spending”. Perhaps we should make a list of these spending cuts and pin it up on the courthouse walls to remind us what was “unnecessary”. It will be helpful reminder when revenues increase again.
It was only months ago that county officials where telling us they expect a 2 percent to 7 percent growth moving forward. While making 20 year “master plans” they failed to see or ignored the pending economic collapse. They could not envision a 20 percent fall in revenues.
Spending is a political issue. Over the past few years our county government and the board of education has hired hundreds of new employees in anticipation of growth that never accrued.
I am convinced, government does not have a revenue problem- it has a spending problem.
