Why, the caller asked, didn’t county commissioners use the increase in assessed valuation to lower our tax levy?
A good question that begs answering.
Two reasons, and they need to be answered in three-year perspective.
In 2014 the county’s assessed valuation was $99.5 million. Commissioners knew it was going to increase for support of this year’s budget because Enbridge properties — a crude oil pipeline that runs diagonally across the county and a huge pumping station southeast of Humboldt — were to be added to the mix.
Enbridge’s assessed valuation of $38 million or so this year was more than was anticipated, but it was welcome after the county had to plod along with tight budgets for years. Commissioners then could have reduced the general fund levy — it was 39.14 mills — but chose instead to create a capital improvement fund. When the ink had dried, the budget had about $2.5 million thus sequestered.
This year Enbridge’s valuation again was a mild surprise. With crude oil prices dropping precipitously, expectation was Enbridge’s valuation likewise would drop. However, it held relatively stable, shaking out at about $35 million.
That left the county assessed valuation for 2017 at $138.3 million, down less than $3 million from this year’s $141.1 million.
Back to the question.
Commissioners were reluctant, as they were this year, to cut the 2017 budget levy much because of a state law that takes effect in 2017. Legislators, with the urging of Gov. Sam Brownback, decided local budget levies should not increase more than the rate of inflation — meager of late — without taking the issue to a vote.
Two things about that are troubling.
First, the Legislature, and Brownback, have had a dickens of a time managing state finances since the ill-advised income tax cuts of 2012-13. Instead they signed on to the Kansas Chamber and Americans for Prosperity tax-cut philosophy wholeheartedly and decided to tell counties and cities how to govern.
The facts are simple. Local governing bodies know their constituencies are perfectly capable of deciding when, where and how much tax money should be spent for the public good.
Consequently, commissioners this year have before them a budget that cuts the overall levy by 1.5 mills, and increases some smaller funds, including road and bridge by 5.079, while reducing the general fund’s by 11.039 mills, to 32.739, or better than 6 mills less than in 2014.
The state law affecting local budgets was passed a year ago, with its implementation then delayed a year, so commissioners knew about it when this year’s budget was constructed.
Also, another burr the state slapped under the saddle of local governing bodies was that if they wanted to increase taxes a small amount, the cost of a referendum might well be more than the tax increase.
