The Assessment Shell Game: Getting Money the Old Fashioned Way -- Bait and Switch

Here is how the PWC Tax Shell Game works:

The Board of County Supervisors tells all taxpayers they want to keep taxes flat, so they publish a tax rate of $1.215 per $1000 of assessed values of homes.

Then, just to put a little gloss on the pig, they do a little misdirection by telling taxpayers the tax rate of $1.215 is actually not a tax increase at all (even though they tell you the "average tax increase will be $110")when "adjusted for inflation."

Makes the whole tax increase thing make you think you are getting off the hook.

That all changes when you get your assessment bill in the mail.

For taxpayers living in homes in the high-growth areas, where nearly all of the new homes were built in the last 10 years, they you are in for a real shock.  Your assessment likely ranges anywhere from 4% to 15.5%.

For residents in the community of Oak Valley where I live -- located in western Prince William County, most homeowners got a tax assessment increase averaging 14.5%, and that adds $850 to the tax bill owed to Prince William County.

And the inflation adjustment is another horror story.

That 2% inflation number is an absolute fraud -- and the County staff knows it.

For municipalities like Prince William County, there is a CPI for government entities that uses a vastly different calculation that the regular CPI that measures a so-called market basket of goods and services a family of four would typically purchase.  That is the 2% inflation number used by the County to make us all feel good about the so-called inflation adjustment making our tax bill "neutral."  The Municipal CPI is less than 1% because the goods and services purchased by the County are DIFFERENT that those a family purchases.

But that puts more money in the County's pocket while trying to make you feel like they are in the same inflation boat we are.  NONSENSE!

Here's the rub:  The Bureau of Labor Statistics CPI deliberately excludes food and gasoline prices because those commodities have pricing models that are too volatile to measure.  So the truth is that families are hit with an everyday inflation rate of over 10% right now, and gas prices are predicted to keep climbing throughout the summer.  Given that 2/3 of County residents commute out of the County to work, that really slams families hard.

So the truth is, a significant number of Prince William County families are getting hit with double digit assessments and tax bills that are five or six time higher than the County claims for its "average" tax bill, and the County counts the cash all the way to the bank.

PWC Committee of 100 Hosts Important Forum on Taxes

Committee of 100 Forum on Taxes

The PWC 100 March 15, 2012 Program

Are Higher Taxes the Magic Bullet for Keeping Prince William Schools Competitive or Are There Other Options?

• Are Prince William County schools able to offer a good education for county students within current resources? Can they compete for good teachers with surrounding jurisdictions?
• Would a tax increase be unduly burdensome for property owners at this time? Would it affect housing values?
• When the State budget is passed, is it likely to increase or decrease funding for Prince William Co. schools?
• Should the schools compete with other services for a share of the county budget each year or receive a guaranteed percentage as at present?
• Should taxing powers be granted to elected school boards?

Moderator:

Former Del. David Brickley, patron of the legislation that made PWC school board an elective body

Panelists:

Milt Johns, Chairman, Prince William County School Board
Bonnie Klakowicz, President, Prince William Education Association
Del. Scott Lingamfelter (R-Pr. Wm.) - Member, House Committees on Appropriations and Education
Mike May, Prince Wm. Board of County Supervisors, Occoquan District

Social 6:30 p.m.
Dinner 7:00 p.m
Program 7:45 p.m.
Adjournment 9:15 p.m.

Four Points by Sheraton
10800 Vandoor Lane
Manassas, Virginia

Make your dinner reservations today for the March 15th program. The cost is $25 members and $30 for non–members.

Reservations (or cancellations) must be made by noon Monday, March 12th.

There is no charge, if you wish to attend the program only at 7:45 p.m.

Inclement Weather Policy

Our meeting cancellation policy follows that of the Prince William County Public School System. If inclement weather causes cancellation of classes, our program is canceled. If after-school activities are canceled, our program is also canceled. To check on school closings, call 703-791-8720.

Surrounding County Supervisors Get It Right -- They CUT Taxes and/or Cut Spending

[Loudon County] Supervisors Eye Deeper Budget Cuts; Start Talks At $1.21 Tax Rate

County supervisors tonight voted to begin their FY13 budget talks working with a base spending plan that would shave 5 percent off the average homeowner's tax bill, a position would require cuts of about $50 million from the budget recommended by County Administrator Tim Hemstreet.
If fully implemented during work sessions over the next few weeks, the action would save the average homeowner about $200 compared with this year, but would require programmatic cuts—most significantly to the county school system. The adopted School Board budget already is about $22 million over the Board of Supervisors’ requested spending cap and Thursday night’s vote—backed by six of the eight supervisors present—puts the schools about $45 million in the hole.

Leesburg Today:  Thursday, March 1, 2012 9:45 pm | Updated: 10:19 pm, Thu Mar 1, 2012.

 ********************************

Fairfax County Executive Proposes $3.52 Billion FY 2013 Budget

Highlights:

• The proposed budget keeps the real estate tax rate at $1.07 per $1000 of assessed value — the same as it was last year.  
• Net reduction of two county employee positions: recommendation for 34 new positions and abolishment of 36 positions, as part of recommended agency reductions.
• Strategic reductions while retaining core and critical services: $10.64 million in General Fund agency expenditure reductions.

County Executive Staff Issues Doomsday Budget Projection -- But It Is WRONG!

********************************

Important Update

Budget Director Michelle Casciato reportedly is willing to "issue an apology" to individual constituents for her obvious error in characterizing the Stewart/Candland Budget proposal as "reducing the size of the County government by a third from what it is today."

Casciato is apparently unwilling to request the news media, where most people read about her doomsday projection, to retract her obvious error.

********************************

It's the Economy, Stupid!
Ask Bill Clinton

Supervisor Pete Candland started the rhetorical ruckus by telling his colleagues on the Board of County Supervisors that the tax assessment rate should be set at $1.175 per $100 of assessed value, which would mean that county taxpayers would not pay a penny more in the average tax bill for FY 2013.  

County Chairman Corey Stewart also made it clear he agreed with Supervisor Candland and he did not support the spending level proposed by the County Executive.

PWC Budget Director Michelle Casciato

County Budget Director Michelle Casciato immediately castigated the Candland proposal as "devastating."   Casciato went on to sternly lecture Candland that his proposal would cost schools $9.8 million and the county $7.4 million in the coming year alone. 

Casciato went on to sink the nail in the Candland budget proposal with her solemn doomsday prophecy:

“As you can see, these numbers total up to $316M; you would be reducing the size of the County government by a third from what it is today.”

Only one problem with that dire projection.  Casciato's numbers just do not add up.  

There is an old adage that says if you torture statistics hard enough, they will confess to anything.  But you could waterboard the numbers Casciato and County Executive Melissa Peacor trotted out and not get a cut to county government by more than 6% to 7% if Supervisor Candland's proposal were to pass.

Now, if you were to cut the county budget by $316 million in one year, which Candland's proposal does not do, then you could get to a 1/3 cut in spending for a single year.

So why can't the County Executive and the County Budget Director just give us the facts and let the voters decide?

Why all the hyperbolic and irrational rhetoric?

In the end, Chairman Corey Stewart and Supervisor Pete Candland stood up for taxpayers and called for the brakes to be put on government spending.  Nothing irrational about that.

Gas Prices Skyrocketing -- National Economy Sinks

The Prince William County Executive wants everyone to believe that the "Happy Days Are Here Again" with the economy, but the skyrocketing gasoline prices at the pump threatens to torpedo the economy and throw us back into the recession.

Higher gas prices have an immediate impact on families who rely upon their cars to get to work, for shopping, and to transport the kids to school and medical appointments.  When gas prices spike upward, families have to cut back on driving or on purchases they would otherwise make.  Typically, higher gasoline prices suck consumer's disposable income into paying for gas and reducing consumer spending on discretionary items that are the key to any economic recovery that may otherwise be possible.

Most important, higher gas prices make it far more difficult for families to afford the proposed tax increases in Prince William County.

National Poll Shows Americans Want Cuts in Government Spending Over Tax Increases

The American people get it.

In an Associated Press-GfK poll released February 23, Americans clearly stated that cutting spending was preferred over tax increases.

"Yet by 56 percent to 31 percent, more embraced cuts in government services than higher taxes as the best medicine for the budget, according to the survey, which was conducted Feb. 16 to 20. That response has changed only modestly since it was first asked in the AP-GfK poll last March."

The Prince William County Executive and, for now, the majority of the Board of Supervisors don't get it.

Not even close.

Prince William County residents need to speak loudly and clearly to tell the Board of Supervisors that now is not the time to be increasing taxes, and they need to reign in County spending.

Sign the petition now.  When you add your name to the petition, it is immediately and automatically emailed to every member of the Board of Supervisors.

Change.org|Start an Online Petition »

Change.org|Start an Online Petition »

Chairman Stewart & Supervisor Candland Emerge as Taxpayer Champions

Prince William Board of County Supervisors Chairman Corey Stewart, and Gainesville District Supervisor Pete Candland, are leading the charge to reduce the published real estate assessment rate that was passed by the Board of Supervisors on February 21, 2012.

In an email to PWC Stop the Tax Chairman Mac Haddow, Stewart made his views very clear:

Mac,

Thank you for your e-mail. ​I agree with you and wanted to give you an update. The proposed Tax Rate Advertisement presentation was presented to the Board of County Supervisors (BOCS) on Tuesday, Feb. 21, 2012. The BOCS voted for a tax rate of $1.215, which cannot increase at the time of adoption, but can decrease. Although I was disappointed the proposed rate was passed by the Board in a 6-2 vote, I did want you to know that Supervisor Candland and I did not support the proposed rate, voting against it. I am hopeful I can work with the BOCS in adopting a decreased rate on April 24, 2012.

--Corey

Corey A. Stewart

Chairman

Prince William Board of County Supervisors

 Gainesville District Supervisor Pete Candland made his views about protecting homeowners who have been disadvantaged by the recession very clear, and he intends to fight to stop any tax increase for FY 2013:

"My wife and I have sat at our kitchen table on many long nights and made the tough decisions on spending cuts in our family budget that had to be made during this steep economic downturn.

I could not go to my employer and tell them I simply needed more revenue to match our spending plans – my wife and I had to live within our means.

Nearly every Prince William County family has been forced to slash personal spending, and husbands and wives have had to make the tough decisions to maintain their economic security.

That experience was duplicated time after time at family kitchen tables across the County, and however painful the decisions, families had the courage to make those spending cuts.

We have an affirmative duty to match that courage here today.

I know there are some who would choose the easy path to fund government spending by raising taxes on families despite the fact those families are just beginning to dig their way out of a crushing economic recession. 

If we do not set priorities in what the essential core government services should be when revenues are limited, then we have failed in our duty to be good stewards of the County.

If we refuse to honestly tell the citizens what we can and cannot afford, then we have lost their trust.

Higher taxes takes hard-earned money from the pockets of our citizens, stifles the economic vitality of our businesses forcing them to flee the County or go out of business, and ends up reducing tax revenues to the County.

Higher taxes become a significant deterrent to families seeking to live in Prince William County; will drive businesses away from locating here; and will rob us of jobs, economic development, innovation, and entrepreneurship.

The problem is not that we do not have enough revenue, but rather the biggest problem we face today is that Prince William County is spending too much money."

PWC Board Votes 6-2 to Accept Tax Increase in First Budget Vote

The Prince William County Board of County Supervisors took the first step to increase the FY 2013 real estate tax assessment rate to $1.215 by a 6-2 vote.  The vote allowed the proposed tax rate to be  published and starts the budget discussions that will end with a final vote on April 24.

This assessment rate unfairly penalizes homeowners who are struggling to make ends meet in our own family budgets, and is particularly unfair to seniors on fixed incomes and struggling young families.

Prince William County homeowners are strongly opposed to the proposed 18.5% tax increase over the approved five year tax bill plan of the County Executive.  This assessment rate increases property taxes by 3.4% and will allow the County to continue its increased spending trajectory of 5.46% in the current year, and new spending of over 2.48% in the coming year.

Prince William County families have not been able to increase our spending by 7.94% in the past two years.  We have had to cut spending and sacrifice some of the goods and services that improve the quality of life for every family.

In the coming weeks, we will urge the Board to adopt the tax rate of $1.175 on April 24 that will not increase property taxes by a single penny.  By voting against the tax increase, the Board will help Prince William County families recover from the deep recession that was caused by runaway government spending in the first place.

Thanks to Chairman Stewart and Supervisor Candland for standing up for taxpayers.

To view the story in the Washington Post on this vote, click on this link:

Washington Post Story on PWC Vote to Increase Tax Rate

What is the Real "Flatline" Tax Rate?

When the Prince William Board of County Supervisors votes on Tuesday on the tax assessment rate for FY 2013, the real question is this:

What should the rate be to guarantee that homeowners will not pay one penny more in taxes this year than they did last year?

The answer is mired in an unknown figure at this point, and that mystery figure is what the assessment increase projection is for FY2013,

If the County Executive sticks to the projected and unrealistic real estate assessment increase of 3% for FY 2013, then the tax rate would have to be significantly LOWER than last year's rate of $1.204 in order to keep taxpayers from having to pay higher taxes.

Consider the fact that last year the County jacked up taxes by claiming the appreciation on our houses went up by 5.24%.  Now they want to add 3% and claim that it is a "flatline" tax proposal.

In the end, it becomes a cynical shell game where the taxpayer loses.

The County Executive does not want to tell us what the real flatline tax rate is, she hides it in some mythical "inflation adjustment" that is supposed to make us feel better.

It is all about government spending, and Prince William County government spending got back on steroids in FY 2012, and now appears to be addicted once again.

The combined spending increase for FY 2012, and the proposed tax increase for FY 2013, will increase County spending by a whopping 7.94%.  And that in the middle of a recession.

How many families in Prince William County have had a 7.94% increase in income?

Here is the kicker.  The proposed budget will add a third Assistant County Executive to handle human resources issues (at a pay rate of $212,660 per year).

And why is a new Assistant County Executive needed to handle human resources issues?

To handle all the new County employees?

In a year when the federal government, that typically leads in outrageous spending, is telling its employees their pay is frozen, Prince William County is proposing a 3% merit pay increases for County employees in FY 2013.

Taxpayers get no increase, but get their pockets picked with higher taxes.

No consideration is given to the reality that the recession is not over, and gasoline prices are expected to dramatically escalate because of global oil supply disruptions.

Prince William County taxpayers need to rise up and say NO!

Make A Difference - Sign the Petition Today!

Change.org|Start an Online Petition »

Tuesday is D-Day for Setting the Tax Rate

The Prince William Board of County Supervisors takes a key vote on Tuesday, February 21 that will set the tax rate for the FY 2013 budget.

This vote sets a cap that cannot be exceeded when the final budget vote is taken, but it can be lowered.

The vote is important because it can set a limit on how much revenue the County can take from property owners, so the lower the rate the better for homeowners.

The Tax and Spend crowd will want to keep the rate at the recommended $1.216 that gives the County Executive the 4% bump in revenue she is seeking.

The target rate that will prevent increased government spending, and keep our taxes at the current level, is $1.204, the FY 2012 rate.

In addition to signing the on-line petition, everyone should take time to call their Supervisor and strongly urge them to set the FY 2013 tax rate at $1.204 or lower.

BUT THE CAVEAT IS THAT THE RATE HAS TO MATCH THE ASSESSMENT INCREASE SO THE END RESULT IS NOT ONE PENNY IN NEW TAXES IN FY 2013 OVER WHAT WE PAID IN FY 2012!

Taxpayers should be strongly opposed to the $1.216 proposed tax rate.

The contact information for each of the Board of Supervisors is as follows:

Corey A. Stewart

Chairman-at-Large

1 County Complex Court 


Prince William VA 22192 


Office Phone: 703-792-4640 


Office Fax: 703-792-4637  

cstewart@pwcgov.org 

Marty E. Nohe

Vice Chairman

Coles District Office


13476 Dumfries Road


Manassas, VA 20112


Office Phone: 703-792-4620


Office Fax: 703-792-4610 

mnohe@pwcgov.org 

Wally Covington

Brentsville District Office


9248 Lee Avenue

Manassas, VA 20110


Office Phone: 703-792-6190


Office Fax: 703-792-5707


wcovington@pwcgov.org 

Pete Candland

Gainesville District Office

7873 Ashton Avenue

Manassas VA 20109

Office Phone: 703-792-6195

Office Fax: 703-792-7664

gainesville@pwcgov.org

John Jenkins

Neabsco District Office


4361 Ridgewood Center

Woodbridge VA 22192


Office Phone: 703-792-4667


Office Fax: 703-792-4669


jjenkins@pwcgov.org

Michael C. May

Occoquan District Office


2241-B Tackett's Mill Drive

Woodbridge VA  22192


Office Phone: 703-792-4643


Office Fax: 703-792-4833


mcmay@pwcgov.org

Maureen S. Caddigan

Potomac District Office

15941 Donald Curtis Drive

Woodbridge, VA 22191

Office Phone: 703-792-4645

Office Fax: 703-792-4622

mcaddigan@pwcgov.org 

Frank J. Principi

Woodbridge District Office

15941 Donald Curtis Drive

Woodbridge VA 22191 

Office Phone: 703-792-4646

Office Fax: 703-792-4993

FPrincipi@pwcgov.org

Board of Supervisors to Vote on Tax Rate on Tuesday

The Board of County Supervisors takes the first step on Tuesday, February 21 on setting the FY 2013 tax rate.

That vote will set a tax rate that can be lowered in the final budget, but it cannot be raised.

That is precisely why homeowners have to speak out loudly now to eliminate the proposed 4% raise in property taxes (that the County Executive says is a "flatline" budget when adjusted for inflation).

If the tax rate is approved for FY 2013, it sets the stage for additional tax increases over the five year period from today to FY 2016.

The average real estate tax bill on families in Prince William County will increase from $3,188 in 2012, to $3,731 in 2016 -- totaling the 18.5% increase during that period.

That will fund a 5.5% increase in County spending over FY 2011.

All of this is based on the very rosey economic predictions by the County Executive, but the underlying methodology is deeply flawed.

Prince William County families have to have time to dig out of the deep hole they have been thrown into by the government.

Spread the word -- and sign the petition to tell the Board of Supervisors to stop the tax increase.

Change.org|Start an Online Petition »

Prince William County's Executive Budget Shocker: 18.5% Tax Increase Over 5 Years

Prince William County Executive Melissa Peacor has presented a 2013 fiscal year budget for Prince William County that projects a 4% property tax increase, and under the County's 5 year plan our taxes will increase by 4% in each of the following 3 years.

That's a whopping 18.5% tax increase on Prince William County homeowners over 5 years (from FY 2012 - FY 2016)!

All good tax and spend liberals put a spin on their bad news, and the PWC County Executive spread hers on very thick:  "This is a flatline budget when adjusted for inflation."

The only thing "flatlined" in this budget if it is approved will be home sales; commercial development that would spread the tax base; and the ability of Prince William County families to climb out of the deep hole that the tax and spend philosophy of Republicans and Democrats in the Congress over the past decade.  The deep recession of the past five years have "flatlined" family budgets, and now the County Executive wants everyone to jump on the tax and spend bandwagon because Ms. Peacor believes the economy is picking up.

Here is the chart the County Executive presumptuously titles the "Adopted Five Year Plan Tax Bill":

Click on this link to sign a petition to send to the PWC Board of County Supervisors:

Change.org|Start an Online Petition »