Abdul has a post up on the subject of tax caps imposed on local government wherein he minimizes the concerns of local officials.
Most of them will complain that the caps will hurt their budgets and they will have to cut police and fire. As much as I respect local officials, I truly wonder if any of these guys get it sometimes. The purpose of the hard caps is to protect the taxpayers from huge shifts in their tax bills.
And the money the local officials spend is the taxpayers’ money. It is not their money! When property taxpayers were up in arms and many seniors were afraid of losing their homes over high tax bills, where were these officials? What were they doing to stem the tide of fear and dissent? A lot of them were nowhere to be found. But now they are crawling out of the woodwork (especially the schools) to keep their hands on the taxpayers’ hard-earned money.
One issue I have is that nothing protects local government budgets from huge shifts in funding and duties. This property tax spike came crashing down on us when State officials shifted tax burdens onto local property tax rolls. They eliminated the inventory tax and shifted those burdens to property taxes. The State Supreme Court struck down the previous assessment system, shifting burdens from businesses to residential tax payers. The State General Assembly balanced its budget at the expense of homestead and property tax relief credits. Now the Governor, at every available opportunity, falsely blames the property tax spike on increased local spending. The primary tool made available to local governments to ameliorate these state-caused property tax increases were to allow local government to raise local income taxes. You saw how well that kind of tax increase worked for Mayor Peterson.
So local officials have every right to complain. They have no reason to trust the State to do right by them. The State has deprived them of resources and increased their burdens. To add insult to injury, State officials have pushed tough political decisions to local officials. Raising an income tax makes voting on the proper time zone look as innocuous as passing a resolution honoring the local girl scouts.
The taxpayers are not, by and large, fully aware of this dynamic. All they know is that their tax bill went up, and they aren’t getting anything more for their tax dollars. So, I disagree with the notion that taxpayers are making a fully informed decision to do with less fire and police protection in exchange for lower taxes. I don’t get the sense that the analysis goes that far. There’s a vague notion, fueled by the Governor, that these local governments are wasting money and that if we only cut this unspecified waste, tax bills would go down. I don’t get the feeling taxpayers, by and large, envision doing without any of the services they want and need. And who is going to take the political hit when crime rises, fire protection is slow, trash builds up, the schools get run down, the courts back up, or whatever? It’s not going to be the Governor.