Sunday, July 25, 2010

As we approach the end of the fiscal year for most state and local governments and agencies, we see the almost weekly news about proposed pay raises for public employees. The reasons for the raises differ from agency to agency, but they tend to either be "keeping up with the Jones" or contractual obligations with the union employees.

Residents might keep a few things in mind: First, it is early in the process and few budgets are approved as presented by staff. And second, citizens should voice their concerns to elected officials if they expect proposed budgets to be trimmed before final approval.

Letters help, but seem to be less effective than personal phone calls, meetings with elected officials and showing up at budget meetings to state concerns. In a face-to-face meeting or phone call, taxpayers can gain insight into their representatives' positions and thoughts. By showing up at public meetings, taxpayers can help give elected officials the political courage they need to go against staff's recommendations for bigger budgets.

To both taxpayers and elected officials, we offer our annual explanation of "rollback." With some adjustments for new construction, the rollback tax rate is the ad valorem millage necessary to bring in the same amount of taxes as collected the previous year, based on the current year's property valuation.

In years with increasing property values, the rollback rate will be less than last year's ad valorem millage rate. In years of declining property values, as we have now, rollback rate is higher than the current ad valorem millage rate.

So, if local governments and taxing agencies keep their proposed budgets the same level as this year, property owners will see an increase in the tax rate they will pay.

The reason for this annual discussion is to remind taxpayers that if they do not want to pay higher taxes on their commercial or residential properties, they must start now to lobby elected officials to reduce expenses. Public officials must do as many of their constituents have been forced to do with their personal and businesses budgets -- cut back.

Residents have had to learn to stretch their dollars, to delay nonessential purchases and to travel only when absolutely necessary -- so should government. Homeowners and business owners have had to hold on to personal automobiles and business vehicles for an extra year or two -- so should government.

Elected officials need to hear clearly the voices of taxpaying voters, who expect their representative to keep a cap on raises, acquisitions and any expenditure that is not absolutely necessary. Talk to them.

The First Amendment to the U.S. Constitution protects -- along with freedom of religion and speech -- the right and responsibility "to petition government for redress of grievances." In other words, you have the right to lodge a complaint to, or seek the assistance of, your government officials.

Exercise your rights and lobby forcefully for budgets below rollback, and lower ad valorem millage taxes. Tell representatives their constituents are experiencing economic hardship -- and it is not appropriate for them to reduce their economic pain by increasing injury to taxpayers.

-- The Citizen