Tax Increases on the Horizon in Fairfax County
At a Board of Supervisors hearing on Tuesday, Fairfax County Executive Anthony Griffin released his budget recommendations for fiscal year 2011, which begins July 1, 2010 and goes through June 30, 2011. It should come as no surprise that the recommendations include bringing back the vehicle registration fee and a real estate tax increase. While the budget recommendations do have some cuts, such as no pay raises for county employees, there is one key agency that is requesting additional funds and it might contribute to more tax increases.
Now, it might not seem odd that the Fairfax County School Board is requesting additional funds, but the economic situation requires cuts in this agency as well. For example, Fairfax County is seeking more funds to pay for pensions and better health care coverage. Meanwhile, there are taxpayers struggling to keep their health care coverage. While public education is an essential service, the school board should look over their own specific budget and tailor it accordingly.
Speaking on the budget recommendations, Arthur Purves, President of the Fairfax County Taxpayers Alliance, said:
The county and school system went on a spending binge during the housing bubble. County and school salary increases far exceeded private-sector salary increases. In addition, county and school employee benefits costs soared to pay for pensions and generous health insurance, while the private sector-taxpayer is losing pensions and health insurance.
Specifically, the school board has a one-year $98M increase in employee benefits costs, of which $71M is for pensions, $15M is for retiree healthcare, and the rest for health insurance. If they do not get a tax increase, the school board will lay off teachers, increase class size, and cut band and sports to free up $98M. This is after an eight-year period where school salaries increased faster than taxpayer salaries.
The county also has a $35M increase in pension costs.
We believe it is unfair to raise taxes so that the county employees can be better compensated than the taxpayers. Instead, the county and schools should cut salaries to free up money to pay for employee benefits increases.
Perhaps, it is time to look at each department in Fairfax County and evaluate their budgets carefully. It is not the time for tax increases, rather it is the time to find where there is excessive spending and find ways to reduce it.
Posted on February 26, 2010, in Budget, Economy, Virginia Politics and tagged Budget, Economy, Fairfax County, Taxes, Virginia. Bookmark the permalink. 1 Comment.
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