Letter to Board of Supervisors re: Advertised Real Estate Tax Rate

Supporting Links:

Joint Meeting of the Fairfax County Board of Supervisors and the Fairfax County School Board, September 29, 2009 Fiscal Outlook

Chair Bulova testimony to the Fairfax Delegation to the General Assembly

Letter dated 2/13/2010 from the Hanelines

Chair Bulova copy submitted via the online feedback form
online feedback form for Chair Bulova

Email Distribution to BOS and School Board
my district representative and chair, respectively

To: Supervisor Hudgins <hntrmill@fairfaxcounty.gov>
CC: Kathy Smith <Kathy.L.Smith@fcps.edu>, Jane Strauss <jane.strauss@fcps.edu>

As we approach the time for the board of supervisors to set the advertised tax rate, we respectfully request the board of supervisors advertise a tax rate that is sufficiently high enough to fund our essential county services.

We are deeply concerned that if the real estate tax rate were increased at about equalization, then the projected revenue increase of $199.11 million fails to close the projected deficit gap of $315.6 million due to loss of revenue and disbursement/balance requirements. Furthermore, we are concerned about additional funding requirements for the county beyond the $315.6 million shortfall. This provides no funding for salary adjustments or inflation for any county employee. For FCPS, this provides no increase in the school transfer to cover costs associated with a projected increase in enrollment of nearly 3,000 students.

At this time, the underlying state budget contains a freeze to the LCI. In addition, the state budget contains a deficit, yet to be resolved, that further threatens funding in education, healthcare, public safety, and other essential government services.

We appreciate the persistent efforts, the unified leaders of Northern Virginia; have taken to lobby the governor and delegation for fairness in the school funding formula. We fully support continued efforts to lobby and prepare for possible legal action with respect to the LCI. We fully support efforts to diversify our revenue stream so that we are not so dependent on the real estate tax.

At present, there is no certainty the Commonwealth will live up to its partnership with Fairfax County and meet obligations for education, public safety, health care and other essential services. At present, Fairfax County is at risk for reductions in state assistance, the full scope of which is unknown. It would be prudent to advertise a tax rate that ensures a local revenue stream to preserve essential services.

With a tax rate advertised sufficiently greater than equalization, the county would have more options to cover the potential shortfall in state assistance and shifting of responsibilities from the state to localities. If the Commonwealth severely underfunds essential services, and our advertised tax rate is set too low to cover the shortfall, then our options would be limited to unacceptable cuts in essential services. Once the full impact of the State budget is known, we could assess the ability to adjust down the final real estate tax rate while closing the budget gap.

Specifically, with respect to the public schools, we respectfully urge you to advertise a tax rate that is high enough to cover the full transfer amount requested in the school board advertised budget, in addition to covering the projected shortfall due to loss of revenue and disbursement/balance requirements. Under the advertised school budget, we are concerned that class sizes are unacceptably high, salaries frozen for another year, benefits reduced, and innovative programs and services are reduced or eliminated.

Executive Griffin reported on January 13, 2010 from the community dialogues and employee forums that “Participants generally indicated … considerable anxiety over potential reductions in FY 2011”. With respect to an increase in real estate tax, “Pre-straw man sessions tended to favor increasing the tax rate to keep the average homeowner’s bill flat, while post-straw man sessions tended to favor increasing further ”.

We testified on the importance of preserving a worthwhile public education before the Fairfax Delegation to the Virginia General Assembly, the Senate Finance Committee, and the Fairfax County school board. We participated in a community dialogue, town halls, PTA meetings, and community meetings. Many in our community share a deep concern over possible reductions in essential services. There is support for a tax increase greater than equalization when the community understands the impact on the quality of life in Fairfax County.

For preserving the quality of life Fairfax County is known for, we respectfully urge you to advertise a tax rate sufficient enough to ensure a revenue stream to preserve the public schools, public safety, social services, recreation, public libraries, and other county services.

Sincerely,

Marybeth Haneline

Gary Haneline

Cc: Kathy Smith, Chair, FCPS School Board
Jane Strauss, FCPS School Board