As realtors, developers and appraisers, you all have an incredible impact on the quality our homes and the nature of our county’s political discussion.
As a group, you all represent some of the most forward thinking self-starters in this area. You have created your own businesses and are directly responsible for the quality of your business activity.
That is why I pray that you will indulge me for five minutes to consider why you should at least stop and think about voting no to the local sales tax increase.
We all want the best for our children, and our nieces and nephews too. Great schools are important, even critical to the well being of a community. But the fact is that our county leaders have significant options to finance the school’s construction needs. They just fail to exercise those options, instead defaulting to the easy button by raising taxes.
The sales tax referendum represents a 3.7 percent tax increase. The local option to increase sales tax is only available because the state is taking the burden away from county government for Medicaid funding, thus also reducing some payments from the state to the county. However, counties will see a net increase in their available revenue from the state due to the “Medicaid swap” as it is being called. Mike Apple has calculated the net increase to Rockingham County at approximately $900k-1.2 million annual over the next few years.
So the fact remains that the county does have options other than increasing taxes to meet local needs.
The county has more than $22 million in discretionary spending in its current budget. More than $15 million already goes to the school system. Setting aside the school funds, leaves $7 million of available money for the county to chose how to spend.
Are there really “no choices other than to raise taxes”?
Lastly, Rockingham County already loses 35 percent of its sales tax revenue because of limited local economic activity. If our economic activity met just the state minimum average for a county our size we would see an additional $5 million in revenue to the county.
Again, we all want great schools and the best for the future. There are those who believe limited government allows individuals to keep more of their money and spend it with private local businesses.
I ask that you consider these perspectives and others available at our website, stopthehike.wordpress.com
As leaders in the community, I would challenge you not to abdicate the responsibility you have to demand effective government from elected officials.
Thanks for your time.
Jeff
p.s. Current projections from county staff also show the property tax rate floating to the mid 70 cent range, with a revaluation, in the next 5 years. I have these documents and would be more than happy to share them with any of you on request.
