News bulletin from Richmond: On Feb. 21, the House of Delegates voted to raise real estate tax rates in nearly every city and county in Virginia.
Homeowners in Norfolk and Portsmouth would be walloped with tax hikes of 5 cents in each city. That's $50 on every $100,000 of a home's value.
Chesapeake and Suffolk would see a 3-cent hike, while Virginia Beach would escape with only a 2-cent bump.
That's not the story House Republican leaders wanted splashed across every newspaper's front page, but it is the inescapable outcome if they succeed in shifting millions of dollars in state school costs back onto local governments.
The House's two-year budget includes a provision that would allow the state government to retreat on its obligation to pay its full share of teacher and support staff salaries.
The Senate backed the House leaders down, but its leaders continue in the conviction that it is a good idea. To get a new budget passed by Saturday, House leaders have agreed to hold off for a year.
If this shell game ever becomes law, city councils and county supervisors will face an agonizing decision every year. Do they allow teacher pay to fall farther and farther behind their peers' in other states? Or do they raise property taxes so they can continue to attract and retain quality educators?
The timing highlights the dangers of this plan. Most cities in South Hampton Roads are already struggling to fill holes in their budgets caused by the slowing economy and real estate markets. Now, Republican delegates are lining up with backhoes to sink localities into a deeper financial pit.
An analysis by a coalition of local government and education groups estimates the House proposal would cost cities and counties $227 million when fully phased in with the 2010-2012 state budget. That amount includes school aid cuts and a reduction in state support for local law enforcement.
Analysts estimate the impact on cities in South Hampton Roads at $4.8 million in Suffolk, $5.9 million in Portsmouth, $13.2 million in Chesapeake, $16 million in Norfolk and $21.2 million in Virginia Beach.
The analysis suggested that all but eight of the 134 cities and counties could be forced to raise real estate rates to cover the extra costs.
Keep in mind that the state is only obligated to pay 55 percent of what it terms "basic aid," which represents the minimal staffing necessary to provide a quality education. Because lawmakers low-ball those costs, every city and county in Virginia already pays more than their share under the state's own funding formula. In 2007, those extra local contributions ranged from $6.4 million in Suffolk to $185.4 million in Virginia Beach, according to the state Department of Education.
Now, state legislators are trying to push even more expenses back onto the property tax bases in Hampton Roads and, ultimately, onto homeowners.
Where are the self-appointed protectors of the Hampton Roads taxpayers? Why isn't the Norfolk Tea Party boiling mad? Why isn't the Virginia Beach Taxpayer Alliance marching through the halls of the state Capitol scolding lawmakers like it does city council members?
If House leaders wiggle out of a 30-year agreement on school funding, homeowners, businessmen, teachers and PTA boosters will be at each others' throats every spring over real estate taxes. If taxpayer groups really want to keep a lid on property taxes, they should insist that their legislators stop trying to weasel out of paying their fair share for schools.
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Mr Barrett and Taxpayers Groups.
You said you hope you are wrong about local taxpayer groups shifting the load to local responsibility. "YES YOU ARE WRONG". The taxpayer groups across HR want less taxes across the board - even for you. The taxpayer groups want to reduce government intervention in the lives of the all citizens. In this manner, reduce the heavy burden of taxes imposed by the elected official and the City Managers Staff in support of their own self interest and that of special interest groups like HRTA, HRPDC, SPSA and others. The government has no business imposing forced control over business, housing, liquor, etc. The question remains, Why is government conducting business where the community should operate? Get the government out of our lives and the business community. It is not necessary, it is overbearing and controlling. Government is supposed to support the community, not control it.
The Homestead exemption was designed to assist the senior citizen who is on a fixed income remain, in the City and home that was His/Her creation and that must be protected in the "City of a Lifetime". Senior citizens who have spent years to build the City, the schools and the infrastructure by sacrificing a p
Well, I hope I am wrong
Well, I hope I am wrong about the position of the VBTO on this issue. That is, will they acknowledge that the anti tax groups by supporting delegates who shift cost to local government are part of the cause of the increase in local real estate taxes? My experience and participation with these groups at public meetings and hearings is that they will comment support candidates that express the anti tax view, but never question those same delegates about cost shifts to local government. In fact, just recently, these groups supported the Homestead Exemption that would have had renters of residential and commercial property pay for a tax exemption for the majority of homeowners. Isn't this just blatant self interest? Since the majority of Virginians are homeowners, why not change the constitution that mandates that all classes of property be assessed at fair market value, and give myself a tax break? What happened to fair, equitable, and just?
THE MYTH
"The myth that teacher pay is too low is just that, a myth. Friends, teaching K-12 is not that hard. And it certainly isn't something that should command more than $30k - $50k."
What an interesting idea. This is not the 1950's when all a bright woman was allowed to be was a teacher or a nurse. You obviously have never been a teacher or have never known a teacher...at least not any worth a darn. Amazing in this day and age to read someone place such a low priority on the education of our future.
assessments, taxes & "double Whammies"
I'm sure the assessors will follow suit & raise the assessments as well, that no one ever wins appeals on, as real estate prices continue to drop in a rapidly declining market. Then it will truly be a "Double Whammy"
Say it ain't so
Republicans raise taxes????????? Golly gee, I thought just Democrats did such a thing.
Mr Barrett and taxpayers groups
Obviously Mr. Barrett is so offended by this taxpayer group that every time VBTA is mentioned he flips out.
This VB group and others in Norfolk, Portsmouth, Suffolk and the pennisula are the most honorable and factual groups of citizens who consistently try to represent the taxpaying voters who pay the bills. The fact is that in VB the residential taxpayers are paying 87% of property taxes while commercial pays 13%. Property taxes are the primary revenue of the cities. Other cities in Hampton Roads are the same. The taxpayers rightfully must have their say, as they are paying the bills.
Mr. Barrett's comments do not do justice to his credibility by implying that these groups, who give freely of their precious time to try to protect the citizen from, the government who thinks redistribution of the citizens wealth is their right, are unconscionable.
Commercial Industry should pay its fair share.
I know that Mr. Barrett will probably feel that he has to comment on this, and I am sure that it will be in the usual manner of Mr. Barret - Anger, scorn and comments that belittle the taxpayers groups and only reduces his believability and effectiveness.
Well, you are absolutely
Well, you are absolutely correct, but to expect the taxpayers associations to have a clue is far more than can be expected. When anger is your method of expressing yourself, you never bother to think through the consequences. So any politician who takes the Grover Norquist No New Tax pledge is fine by them. No matter that that gives state delegates carte blanche to shirk their statutory obligations and shift costs to local government, all the while blaming local government for uncontrolled spending. Think John Moss or Robert Dean would ever point this out? Of course not. They are too busy collecting their government retirement checks to care one wit about the broader implications of the cost shift.
Just New Repbulican Inspired Taxes!
Ever since Bush became President all I have gotten is more new taxes!
In the form of higher property taxes I am paying three times what I was paying when he was elected.
Oh!
Oh and let me add, didn't the Transportaton bill also include a real estate tax increase. This is a doubble whammy.
Bums!
The only problem with "throwing the bums out" is that the parties will just nominate another bum to represent their party line. The pilot is right, a slow economy and real estate markets have resulted in less revenue. What the pilot failed to mention is that the cities of Norfolk, Chesapeake and Virginia Beach have spent like drunken sailers in the good times. All politicians are to blame!
Sneaky tax hike OK with delegates
Yeah, and the peple keep voting the bums back into office. Elect someone new...we can't do any worse. Even Atila the Hun had a good side (I think). "VOTE THE BUMS OUT"
Teacher Pay
The myth that teacher pay is too low is just that, a myth. Friends, teaching K-12 is not that hard. And it certainly isn't something that should command more than $30k - $50k.