Friday, March 30, 2012

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.

Saturday, March 10, 2012

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.

Monday, March 5, 2012

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.

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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 valuethe 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.