COUNTY BUDGET PROPOSAL HOLDS TAX INCREASE TO UNDER 5 PERCENT

Mike McCagg

ccSCOOP News

11-09-09 - 3:45 p.m. - Columbia County taxpayers will face a four- to five-percent property tax increase next year under a budget plan making its way through Board of Supervisors committees this month. Board of Supervisors Chairman Art Baer told ccSCOOP that overall he is pleased that the conservative fiscal management has allowed for the creation of a budget that doesn’t dramatically impact taxpayers while allowing for a continuation of primary services and no reduction in employees. The 2010 budget proposal is scheduled to be presented to supervisors for formal consideration in December. Portions of the budget are making their way through various board committees this month, having started at the Finance Committee this week.

Final details of the proposal are not yet being made public. Baer said this year’s budget saw a combined $4.5 million decrease in sales and mortgage tax revenues from last year, which, if the county had not budgeted conservatively, would have had a much more dramatic impact on the budget. By reducing projected sales tax revenue by $1 million to $27 million this year—even when last year’s revenues well exceeded the $28 million budgeted in 2008—and taking other steps, the drop-off in revenues was not as harsh as it could have been. Additionally, he touted tight fiscal controls implemented last year.

“Strict financial controls on all spending implemented in 2008, which included a hiring freeze and programs to reduce overtime, have contributed to this [situation]," Baer explained. He said said sales and mortgage tax revenues are not expected to increase next year, while major “uncontrollable costs” such as pension contributions and employee healthcare costs, are projected to increase by 90 percent and 12 percent, respectively. At the same, state aid to counties is expected to dry up as a federal reimbursement funds diminish and state lawmakers scramble to address a ballooning state deficit that has the state on the verge of insolvency.

While proud that the budget will be able to stave off dramatic tax increases or service reductions next year, Baer said he is troubled by what may occur in 2011. “I have a lot of concerns with the state budget cuts, and trickledown effect on us. I am more concerned actually with 2011 than 2010,” said Baer.