Candidates give views on tax rate
Frederick News PostMonday, May 8, 2006
By Cliff Cumber
FREDERICK — Candidates vying for seats on the Frederick Board of County Commissioners unanimously voiced concern Friday on beginning their legislative careers with a $26 million deficit caused by an election-year tax cut.
Criticism crossed party lines for Republican Commissioners John Lovell, Mike Cady and John L. Thompson Jr. The candidates called them irresponsible in their vote to roll back the county's $1 per $100 assessed value property tax rate 6.4 cents for fiscal 2007.
This year, all five commissioners' seats are up for grabs. The new board will consider its first budget, for fiscal 2008, in the early months of 2007.
"Maybe it's a campaign issue, I don't know," said Democrat Richard Floyd.
Charles Jenkins, a Republican, said the commissioners "were playing an election-year game" and the tax cut was "negligence on their part."
"I don't think they've been terribly responsible," he said.
Mr. Lovell and Mr. Cady are seeking re-election. Mr. Thompson has not announced if he will run.
All three voted to set the property tax rate at 93.6 cents, known as the constant yield, which will bring in exactly the same amount from property taxes as last year.
However, their decision is driving a deficit at the budget's core, as spending outpaces county revenue.
The budget's $3.5 million deficit can be balanced next year with a one-time chunk of money, but the shortfall is projected to increase significantly in coming years if the tax rate remains at 93.6 cents.
By 2012, the end of the next board's term, the deficit is estimated at nearly $70 million.
All three commissioners have suggested cuts but have won no support for them.
Mr. Thompson once again introduced his "Altar of Sacrifices," with its deep slices into programs and abolition of some departments, such as economic development. Mr. Lovell called for all department budgets to be cut by 1 percent after the first $1.5 million. Mr. Cady suggested cutting county employees' cost-of-living increases and lowering a grant to Citizens Care and Rehabilitation Center.
Nearly all the candidates mounting challenges to incumbents said they would make the tough and politically risky choices needed to close the gap.
It could mean cuts, some said. It could mean a higher tax rate.
"I don't think that's ever a good situation, but there will be times when you have to make tough decisions, and that would certainly be one of them," said Billy Shreve, a Republican exploring a commissioner's bid. "And you just have to figure out a way to make it work. And the solution might be to raise taxes."
Either way, Mr. Jenkins said, "It's kind of a no-win situation. The reality is if you don't (raise taxes) you're going to have to make cuts in services."
Mr. Floyd said he would consider the more modest 95-cent rate suggested by Democratic Commissioners Jan Gardner and Bruce Reeder, but rejected by the other board members.
Even so, he said, the state has yet to deliver its forecast on the county's assessable base — the total amount of value of all property in Frederick — in order to calculate what revenue 95 cents would generate.
"I think they should stay with the rate they have now ... because I haven't seen any business case presented to me by anybody that says this is the right thing to do for the overall economy of the county, other than, 'I can say I gave you a tax break,'" Mr. Floyd said.
Other candidates want the existing $1 rate left alone and questioned if any outcry led to the cut. The public complained about overcrowded schools and gridlocked roads, Mr. Shreve said.
But "you don't hear anyone saying, 'Hey we need to lower taxes,' except for the seniors on a fixed income," he said. "Why would it be an issue?"
The county needs roads, schools, water and sewer systems and other infrastructure, and that was where the money could be spent, Mr. Shreve said.
At the center of the problem leading to the deficit has been an inappropriate model for the county's growth, and the choices prior boards have made, Democrat Kai Hagen said.
Each year, assessments rise, although increases are capped at 5 percent through a state program called the Homestead Property Tax Credit. But it's still an increase, and as property becomes more valuable, it generates more property tax revenue. Mr. Hagen called this "a hidden and significant tax increase."
"The current county commissioners and the previous ones are the ones that have made mistakes that have led to this budget crisis, and have been able to benefit from that without having to vote for a tax increase," Mr. Hagen said.
Mr. Hagen called a tax cut, without making changes in the way the county plans or committing to politically unpopular spending cuts and leaving a deficit for the next board to deal with, "the ultimate in irresponsible government."
He supports the constant yield rate, but one undertaken responsibly and planned over time, rather than all at once, he said.
WHY I'M VOTING FOR KAI!
Leanne DeNenno
Linganore Road
Twenty years ago, I moved to Frederick County from Chester County, PA, where I witnessed how fast good farmland can disappear, even in a special and historic place. I became involved in the planning of future growth here when the county began to update the plan for the New Market region, where I live. I met Kai Hagen soon after, because of his work to bring concerned citizens together. I was quickly drawn to Kai's pleasant and calming nature. He...
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