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Friday, April 25, 2008

Wicomico Budget - It's All Because of the Revenue Cap

If you actually believe this, then voluntarily send more money in to the county.

Today's Daily Times provides evidence that the mainstream media loves big government and those that love to spend the money of the average taxpayer. Reading Greg Latshaw's piece almost makes me want to change my voter registration.

According to the Daily Times, Wicomico County Executive Rick Pollitt, and even Wicomico County Council President John Cannon there is just no place to cut. Not only are they mistaken, Pollitt's ongoing parlor trick of blaming the county's revenue cap for every conceivable fiscal problem has grown old to the point that even a die hard cap opponent such as myself is no longer in favor of its repeal.

Pollitt's embrace of the O'Malley tax increase is evidence that a Pollitt administration should not be permitted to increase property taxes. Pollitt's initial claim that his support of the Governor's tax plan was "to protect funding to Wicomico County" has blown up in his face. Not only are we paying higher taxes, funding to the county is expected to fall. This is why Pollitt and the County Council are now faced with a "flat budget".

Are there alternatives? Of course there are. For starters, county employees do not have to receive a 3.5% pay hike. I know, it's a "cost of living" adjustment. How many voters working in the private sector are receiving pay hikes of 3.5%? On a recent trip south I learned that the city of Virginia Beach is providing it's employees a hike of 1.5%.

If the council shows some political courage and cuts (or eliminates) this pay hike they will have accomplished several things. First, they will show their constituents that taxes are levied to pay for a county government that will provide those services that are necessary. This means things like public education (which Maryland citizens long ago determined is a necessary service) and law enforcement (to provide for public safety and to protect private property - which is the FIRST charge of government according to political philosophers going back to Locke).

Is it necessary for taxpayers to subsidize myriad non-profits? Valid arguments can be made for entities such as the Humane Society because they provide services that the vast majority of citizens deem necessary and the government would have to provide these services in their stead. Others are more difficult to justify. Sure, there are constituencies for each and every one. Sure, these are "nice" things to have and make us all feel warm and cuddly. Are they necessary? Are they part of the county's governmental mission?

The Board of Education budget, taking up the largest share of the county budget, is an obvious place for substantial cuts. I realize that it is difficult to trim ALL of the fat from a large, bureaucratic enterprise such as the WCBOE. I also realize that a greater effort should be made. A recent example was posted recently. A large enterprise such as the WCBOE should be managed more like business. Poor performance should not be provided blanket protection. If an employee is not doing their job they should be dismissed rather than left where they are or transferred off to another department (which seems to be the preferred method of our local school system). ANY pay increases should be awarded based on performance rather than seniority. EVERY position should have an express purpose and a measurable performance standard. The economic boom of the 90's was due primarily to increases in private sector productivity. Can you imagine what kind of surplus the county would run if it demanded similar increases in productivity?

Last, but certainly not least is the need to cut taxes. Councilman Joe Holloway (R-5) called for a cut in the county's income (piggy-back) tax rate earlier this year. Hopefully the council will vote for adequate spending cuts to pay for such a reduction. Even if the tax cut is small, the message would be loud and clear - the Wicomico County Council cares about its taxpaying citizens.

cross posted at Delmarva Dealings

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24 comments:

Anonymous said...

Sir:

Let's not be distracted --

The County scenario has taken the focus off Barrie's shenanigans with the City budget. She has cut so much from the department requests to avoid another tax increase that the troops are revolting and she may be submitting a supplemental (a Pollitt innovation). The budget message says nothing about all this, so stay tuned.

Anonymous said...

Yeah, let's not be concerned that BOE doesn't get enough funding to prevent the peeling paint problem that Grand-dad is bemoaning on this blog! Sure, it's all because those greedy teachers want enough salary to keep from going to almost any other county (where they pay more than Wicomico). And blame Robin Holloway, too, for letting it happen.

PS -- I do agree that Pollitt's hand-outs to non-profits is just plain wrong, even if the County we're enjoying the huge revenue increases that the City of Salisbury has had in recent years.

Anonymous said...

The primary purpose of preparing a Governmental budget is funding the Government entitlements from taxes collected. That is the only reason for taxing Citizens. Then you fund your wants, grants, desires and Societies programs if the Citizens have been over taxed. Taxes are not to fund these areas. All which are not entitlements. When cuts are to be made they are the areas you axe first since they are not entitlements. This is also how tax cuts can be made and justified. This is something every Elected Official and the ones preparing Government Budgets should know. If they don't that means that are incompetent and should resign ASAP.

Anonymous said...

Nice thoughts....good luck.
As a county taxpayer I appreciate the need to make us competetive....why wouldn't all of us rather move to Somerset or Sussex County, where the cost of living is less, for instance. It costs what it costs to run the county and offer the essential services, but please please please don't waste money, resources, or add/allow unnecessary layers of administrative costs.

Anonymous said...

Excellant analysis GA. I agree that the BOE has to tighten its budget and do away with whatever waste there is, and we all know in such a large bugeted amount there has to be waste or funds used that really do not need to be used. It's time the teachers, who most of the time complain they need raises, to step up to the plate and say "During these hard budget times we can leave our pay as it was last year". That is probably what is needed across the board from county employees, as well. Ricks gifts to the non-profits have come home to bite him now and I was against such use of tax dollars from the start. Tougher times are ahead, so might as well get used to this now!

Anonymous said...

As a county employee I couldnt agree more with your comments about the annual raises each year for all county employees. One of the Daily Times blog authors recently said the same thing. Why? Why give annual raises? We need to go to an inncentive based program. Don't get me wrong I believe I have a good work ethic and will give an honest days work regardless; that's just the right thing to do in my opinion. But the idea that "joe slacker" gets the same 3.5% as I do is crazy!!! I go above and beyond all the time but why should I? What's the point? Just put my time in and be happy with par. Get my annual 3-5% and life's good. That's exactly why typical government employees are the very opposite of efficient. I've been with the county for a few years now and that is the first thing I noticed when I swtiched from the private sector. The almost lathargic pace at which employees move. Borderline lazy. Again, why should they be any different? Why should they go the extra mile? Why bother with being efficient in all aspects of their work? To them it doesnt matter. "I get my annual raise and I have my secure job" I hope the county admin folks read this. You want more efficient gov't, you want higher quality employees? Start an invcentive based pay raise system and take pay away for poor work performed. The folks with their ores (sp?) in the water will be real obvious real quick and need to be dismissed or told to earn their pay. I want to earn my pay. I want to work hard at my job. I'll take my 3.5% but don't you dare give it to someone who's happy with just getting by. I'm sure their are other county employees reading this; speak up!! Tell the admin. to pay people for the work they perform and not to keep up with inflation. That's such a load of crap. GET RID OF THE ANNUAL RAISES AND PAY PEOPLE BASED ON THEIR PERFORMANCE!!!!

co3153 said...

I have never been a supporter of the revenue cap. That said I also do not support a property tax hike. The assessed value of my property has decreased by 20,000 dollars in the past 3 years. My property taxes have not decreased by one penny. I know that all prices are raising and the county is being asked to do more with less every year. The employees of Wicomico County are loyal and hardworking. As far as comparable jobs in the public or private sector our county employees are underpaid. It is hard to attract and retain good employees in all sectors not just public service. It costs more to train employees than it does to retain them. If a 3.5 percent raise will help stem the tide of losing qualified workers, then give the raise they so richly deserve.

Anonymous said...

Very very well said.

Anonymous said...

What Barrie Tilghman has done to the fiscal situation in Salisbury is atrocious. The property tax rate and tax revenue have both soared under her tenure -- up more than 25% and 50%, respectively, during the past 5 years, but street replacement and other essentials receive less funding, and this year the city workforce gets no cost of living increase and only a .5 in grade step increase (while the county, even with its cap, gets 3.5%). Barrie now wants to spend for such nonsense as an attitude survey and to be in the "All-American City" contest.

The proposed budget requires using over $5 Million of surplus to balance the general and sewer/water funds without any rate increases (would you believe that there's an election for mayor next year).

In Annapolis, Salisbury has become notorious as "the Baltimore of the Eastern Shore".

Anonymous said...

You made no mention of what the "Revenue Cap" has done to this county. You only talked about how and where money is spent. Why don't you say exactly what the cap has done. I don't really understand it myself, so a little explaination may help me decide if a repeal is needed.

Anonymous said...

Lets see if they chose this career for "our children" It's for the kids...it's for the kids. Make them work 8 hours a day, show up on time in the rain, fog, or snow, work all year (not just 8 months),
mandatory proffessional days, and accountability. I suspect there will be no need for cuts...they will do it for us!!! Great Idea!!!

Anonymous said...

I’m glad to hear this response and agree fully. I’m also tired of hearing our county’s leadership complaining that we need to lift the tax cap. If I’m not mistaken, the purpose of the cap originally was to force accountability within the internal county departments to cut the fat and unnecessary spending from their budgets. Since the cap has been put into place, I truly don’t think this has happened. I also struggle with understanding how our county executive states that there isn’t an increase in revenue dollars when in the last two years my property taxes due to assessments have doubled as well as the property taxes of other people I know. If we are paying more money into the county coffers, how can there not be more revenue? Also, with the building boom in the last few years farm land has been replaced with residential neighborhoods. This means increased revenue, as one acre of property with a house on it is appraised much higher than parcel of farm land which is also one acre. I don’t know what kind of accounting system we are using, but something needs to change. I remain stumped by this.

Anonymous said...

The cap is killing you guys so let me explain it in simple mans terms 100 people pay 2% tax, then 100 extra people move into the area and drive the cost of services up to double, but you still only get 2% tax, but you have all the people comming into your area using utilities, water, sewer, classrooms, roads, wastewater...but you can't get them to pay their fair share so with the 2% you only get partial roads, part time library, peeling paint, and you cannot afford to pay the people who work for you a cost of living raise, even though you require more people and expense.
As far as teachers go...I spent time in the local high school this past American Education Week, 80% of the students are nice young adults, the other 20% are thuig hoodlums who do not deserve to be in the same classroom, disruptive, smart talking and non rule conforming. I saw one student threaten a teacher and back in the hallways in an hour, because the liberals in this country demand it! When the parent came in it was evident where the student learned the behavior at home...teachers are WAY UNDER PAID. Especially if you support a multimillion dollar salery for a professional athlete.

Anonymous said...

Maybe if the county had not given 8% pay raises in 2006 and 6% pay raises in 2007 and some of the special employees got an 8% in 2007 there would not be any budget problems. The county could the work force by 25% ( excluding teachers and law enforcement)and the few of still working in the private sector would never see any reduction in county services!

Anonymous said...

Earlier in the year Tom Field said he wants the Board of Ed. to continue to offer the 10% bonus to people retiring in the next three years. This would be "new" people to pay in addition to the ones who signed up last year for three years. It's bad enough that the original ones are getting this ridiculous gift and worse that the big wigs are making more off of it than the teachers are although they say it is to keep good teachers. How can he think about offering it again? Is the county going to be paid back by the people who took the bonus money this year but are not retiring?

Anonymous said...

3:08 Commentator:

Gary Mackes should be the first to be canned!

Anonymous said...

Anonymous said...
The cap is killing you guys so let me explain it in simple mans terms 100 people pay 2% tax, then 100 extra people move into the area and drive the cost of services up to double, but you still only get 2% tax, but you have all the people comming into your area using utilities, water, sewer, ..., roads, wastewater...but you can't get them to pay their fair share so with the 2% you only get partial........
2:36 PM

Has nothing to do with the County, these are all City infrastructure issues.

P.S. you should have stayed at that school a little longer to learn how to spell.

Bob said...

I gave my guys a dollar an hour raise not too long ago because of the increase of fuel prices, etc. It seemed to me like the right thing to do. But people need to realize that times are lean. We need to cut the fat out of every aspect of the county budget BEFORE you can convince anyone to repeal the tax cap. We will realize a $500,000 windfall just in what we will save in diesel fuel and tires. I'm not trying to be funny here....these are real numbers.

We just faced the possibility of "giving away" 2 million dollars for a park we really didn't have to. We can talk all day about it not coming from taxpayers dollars, but these dollars DID come from taxpayers....on the state level. The transfer TAX. How in the hell will you ever begin to convince taxpayers we don't have enough money to do the things we need to do for our county when tax dollars are being squandered. That transfer tax was legislation put in place with a stroke of the pen. Another stroke of the pen could take that same money and use it to lower the piggy back tax. Or it can be used to supplement the money that was cut from the counties by the state. It DOES NOT have to be used to buy real estate which will be removed from the tax roles and added to the property owned by the govt.

No I'm sorry. I was in favor of repealing the current tax cap in exchange for a floating cap which would permit the voters to decide what the cap should be every four years, but the recent actions by our elected officials make me happy the brakes are still on spending.

Anonymous said...

The 3.5 percent,we as county employees will never see.3.2 goes toward the insurance hike... The other .3 percent goes toward our retirement.so as every thing around us goes though the roof our pay check stays the same. low....!!!!

Anonymous said...

I am a service contractor and I work all over this county and have been affected greatly by fee increases all of which have been increased since the tax cap. For our county leaders to say revenues have not increased is a severe load of CRAP. We are facing some tough times ahead in the very near future the building boom is ending ,fuel prices are rising which in turn causes market prices to head in the same direction for goods. Everyone talks about cutting the fat which is exactly what needs to be done . Take a ride around the county and check out how many county vehicles we as tax payers are fueling! It astonishes me to see the number of people the county needs to hold a pick-up truck down along side of the road (thats got to be what they are doing leaning on it). Any given day I can find a crew of their guy's , watch them for a few minutes and show you at least 2 of them relaxing at tax payers expense. I not saying all county employees are lazy I just don't understand why we need so many to watch one man work. Want to cut spending and give honestly deserved raises then get real accountability - NO WORK NO JOB! I am all for paying a person their due wages but come on people quit sponging off of the tax payers. Most of the county employees I know are really good people however a few bad ones leaves a bad face value for all.

Anonymous said...

City Budget admendments require a 4/5's council vote. Could this be a plan to make Lady Campbell look bad in an election year?

Anonymous said...

it's all about a bloated education system. overpaid teachers. and the need to cut, cut , cut. and they want to take $400,000.00 out of the budget from the liquor board. city, county, and executive fools. and if you believe rick pollit, your just as much a fool.

Anonymous said...

Anonymous 12:03 PM

That has to be Alessi in my opinion. He lost to Rick in the election and still has that bitter liquor racket pill stuck up his craw.

Anonymous said...

As a taxpayer, married to another taxpayer, we agree that it costs what it costs to successfully run this county. What we don't agree with is that there is so much waste, which we are required to pay for. We're both struggling to pay for our stuff, and really resent that these experts who put the budget together and these experts who approve it and these other experts who administer it don't try harder to respect our financial contribution. There must be a better way to do this.
I've managed to better economize our family funding, I know these smart elected people can do the same. They owe it to us.