(This entry is duplicated on
myvaresources.com/blogs/depotdazed since it pertains to both local and state level finances.)
IF you have an elected official insisting on "No Tax Increase", what is not being said may be even more important than what is said. What is not said is that for the Government, just as for everyone else, costs go up. If you do not increase your revenue to compensate for those costs, something has to be cut in order to keep the financial system balanced. This same concept is true at the State and Local levels as well.
If the Federal Government doesn't increase taxes to compensate for money going out, it has to cut funding. Frequently that funding is by way of cutting funding to States. At the State level, a promise to "Not Raise Taxes" is further compounded when Federal funds are reduced and no State tax increases are implemented to offset those loses. That means that services normally provided by the State and/or money usually sent from the State to the local level governments (County, City, and/or Town levels) MUST be cut. (Gotta watch out for one thing though.....the statement was that "taxes would not increase" it says absolutely nothing about fees not going up! Watch out for significant fee increases being used to offset some of the lost tax revenue. Those fee increases will simply be redirected back to the consumer/the citizen in the form of increased cost of products and services.)
This local level would seem to be where the 'buck stops' but that really isn't accurate. The 'buck stops' in the wallets and purses of taxpayers. That simple statement "No Tax Increase" could well mean any or all of the following as a way of cutting costs:
- hiring freezes and loss of jobs in state/local government (like job loss is a good thing these day? It just adds to the lost revenue at state and local levels. Fewer people working means less income tax, less sales tax, less user fees, etc.)
- reduction of money available for law enforcement, fire, rescue (loss of equipment, repairs can't be made, equipment can't be replaced, loss of personnel, programs dropped, increased crime, overwhelmed Courts)
- loss of staff for building inspections and codes enforcement
- infrastructure improvements and upgrades cannot occur (water, sewer, roads, stormwater, etc.)
- services reduced or fees for services increased (garbage, water, sewer)
- number of school teachers decrease (despite increased enrollment)
- new text books are not purchased
- school based computer labs and libraries are not upgraded and money does not exist for replacement of items
- hospitals lose important funding for improving equipment and expanding services
- tuition for community colleges and universities go up while instructional staff is reduced
- classes being offered less often (making it take longer to finish a degree)
- services to the elderly and home-bound decreased
- public transportation decreased
- pot holes not repaired
- sidewalks not repaired
- museums and libraries closing
Of course, some of these things can be offset by increasing local taxes. This usually causes a bit of an uproar because people have heard over and over that the State isn't increasing taxes and think that means localities shouldn't increase taxes either. Local jurisdictions depend upon money coming from State and Federal sources in order to augment the costs of services provided to citizens. When that money is no longer available, either services must be cut or local taxes must be raised.
Whenever you are considering voting for someone who proposes "No Tax Increase", try taking the time to ask that person "Then what will you cut? Where will you come up with the money to make up the difference?"
Perhaps it is just as important to know what will be lost if State taxes are not increased as it is to know taxes will not be increased.
Perhaps it is important to elect local officials who have a good understanding of the need to prioritize HOW citizen's money is spent. A firm understanding of the money flow from State and Federal sources and how it is applied is required. Making sure that basic needs are met BEFORE committing taxpayer money on nice but unnecessary items. Knowing where the money come from allows elected officials to prepare for alterations in that flow of money due to partisan politics.
It is also very, very important to keep an eye on not only what is cut but also on what is funded when we are in a "No Tax Increase" mode. Citizens watching will make it harder to put the money into special interest fields or into some jurisdictions while ignoring the needs of other jurisdictions.
But, after all, this is just my opinion. I am not a politician or a lawmaker. I'm just a silly old citizen, what do I know?