Loudoun Girds for Major Cuts in Next Year's Budget
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Originally published at 3:53 p.m., September 17, 2008
Updated at 9:17 p.m., September 17, 2008
Loudoun County officials warned residents yesterday to brace for deep cuts in services and a possible showdown with the School Board as they try to bridge a projected $176 million gap in the county's budget.
In his first presentation to the Board of Supervisors about next year's budget, County Administrator Kirby M. Bowers said that sagging home values were the primary culprit but that rising health-care costs and an expected addition of more than 3,500 students to the school district also contributed to the grim picture.
Supervisors said they were not surprised that the outlook was gloomier than this year, when they approved a 19 percent increase in the tax rate, to $1.14 per $100 of assessed value. That sent the average tax bill up about $300.
Without spending cuts, the county would have to raise the tax rate an additional 21 cents to balance next year's budget, but supervisors said that would be an untenable increase.
"We knew it was coming," Supervisor James Burton (I-Blue Ridge) told the board yesterday after Bowers's presentation. "I think it behooves everyone to be thinking about some service levels that will have to be decreased and maybe some service levels that will have to disappear for the time being."
Governments across the region are coping with similarly bad news. This week, the cash-strapped Prince George's County Council approved a mandatory, unpaid two-week furlough for 6,000 county employees. In Fairfax County, leaders are struggling with a $430 million shortfall in county and school budgets.
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In addition to service cuts, Loudoun is considering a variety of new taxes, including a levy of up to 4 percent on prepared food and beverages. The meals tax, which will be on the Nov. 4 ballot, is controversial. The Loudoun County Republican Committee issued a statement this month opposing it.
However, a majority of supervisors said such a tax could help take the burden off homeowners, because the bulk of the county's revenue comes from real estate taxes.
Loudoun officials said the revenue gap may widen before the budget process begins in earnest early next year. The county's assessor warned that home values could decline more than the projected 8 percent this year.
Yesterday's estimate also did not take into account inflation or any increase in gasoline or utility rates. Bowers said the county's staff will try to make its own cuts to address those costs.
Moreover, the School Board has yet to submit its proposed spending plan to the Board of Supervisors, which holds the purse strings but has no say over how the school district spends its money.
On average, the district adds 3,000 students each year — enough to fill an elementary, middle and high school to capacity. More than 70 percent of the county's $1.6 billion budget goes to education.
For yesterday's presentation, county officials calculated a $53 million boost in school spending, primarily to account for the additional students. But the figure does not take into account rising energy costs, inflation or cost-of-living salary increases for teachers.
The School Board will not tackle its budget until early next year, said Robert F. DuPree Jr. (Dulles), its chairman
"Our side of the equation is: What are our educational needs?" DuPree said. "We will craft our budget based on what we think the needs are and keeping in mind what the situation is for taxpayers."
Some supervisors said the $53 million, which would keep the per-pupil allocation equivalent to this year, might be too high.
"That's probably all you're going to get out of me, and maybe not even that much," said Supervisor Stevens Miller (D-Dulles).
Tagged: budget, LC Board of Supervisors
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Maybe they'll assess our homes at 200,000 more than actual worth, like 2007
Posted by OhTheHumanity (anonymous) on September 17, 2008 at 5:29 p.m. (Suggest removal)
Home vaules are down. People have no extra cash due to inflation and soaring energy costs. Yet Sup. Miller is willing to go on record today of giving $53 million more to the School Board. This man is out of his mind!!
At least the Loudooun GOP came out against the meals tax, so what is the GOP plan? I think the GOP Treasurer should be offering some commentary but he remains silent as a church mouse.
What about the rest of the liberal leaning Board of Supervisor's? Where do they think the money is going to come from?
Unless there is a real discussion soon on what services need to be rolled back and what fees need to be increased, the homeowner/taxpayer in Loudoun will once again be held hostage to a Herbert Hoover mentality government.
Posted by Loudoun99 (anonymous) on September 18, 2008 at 7:47 a.m. (Suggest removal)
For god’s sakes, is this a surprise to anyone that has lived here for 5 years or more? This is how they do it. Roll out the bad news that services will be cut. They never tell you how much they increased them when times were good because they never increase anything but their own salaries. Then they roll out the helpless little children that will not get a good education if we do not raise taxes again by 21%. The they ask for cuts and ask for cuts. Then they say well we might be able to get by with 18% increase but we will have to raise the assessment or delay the evaluation on property until after its decided what the tax rate will be. After everyone raises hell about raising taxes they can and do ask for 14% and everyone is happy and we do it again next year. FOR GOD SAKES wake UP! Freeze the number of new kids in the school system or cap it at 1% for 5 years if they family did not live in LC for the last 3 years. Get real on how and when to build schools. Freeze construction for 3 years! Stop trying to fix every social problem like grass cutting by throwing money at it. It is time to wake up! Actually it may be to late!
Posted by Funnyguyva (anonymous) on September 18, 2008 at 9:43 a.m. (Suggest removal)
By raising taxes to 21%, loudoun is only going to create more foreclosures and further accelerate the problem.
Posted by spammy (anonymous) on September 18, 2008 at 9:51 a.m. (Suggest removal)
First of all, the meals tax is a horrible idea - many of us in Eastern Loudoun are pretty much equidistant to the same chain restaurants in LoCo and FfxCo, and if the meals tax is implemented, to FfxCo we go for food!
Second of all, you guys are totally right - they are going to trot out the poor little children who will suffer oh-so-much if they do not raise our housing taxes. So many people are cash-strapped right now, it is sickening. The FIRST thing the BoS should do is to make sure that all of the enrolled students are actually US citizens. That alone should cut down on a fair number of "new" students (and the expensive ESL programs they bring with them).
Posted by Justthefacts (anonymous) on September 18, 2008 at 10:50 a.m. (Suggest removal)
Hundreds of homes in Ashburn & Leesburg under assessed.
Hybrid car owners pay ZERO car tax.
Airplane owners pay a penny or two on the dollar in asset tax.
Free book/movie rentals at the library.
Raise those rates then cut spending like homeowners are doing.
Posted by RustNeverSleeps (anonymous) on September 18, 2008 at 12:44 p.m. (Suggest removal)
I own a hybrid and I pay taxes. Where did you get your information?
And correct me if I'm wrong, but my taxes went UP this year, along with my mortgage. I'm paying more than 7,000 a year in property taxes when my home is worth about 500K. Plus I pay both city and county taxes on both cars (and the house).
Posted by macdizzle4rizzle (anonymous) on September 18, 2008 at 1:15 p.m. (Suggest removal)
I think Miller was trying to say that the schools shouldn't hope for anything better than the same spending per student and they ought to prepare for worse. Seems like a shot across the bough to me.
Posted by GR8PMPKN (anonymous) on September 18, 2008 at 2:32 p.m. (Suggest removal)
How about giving us vouchers to send our kids to private schools. Our school system costs us $13k per head, a private school in our country costs $3k per head. But since we've already sunk our money into taxes most of us send our kids to public school even though they are nominally less efficient with the money. Let's say they gave us all the option of taking $6k per year to put towards a private school. That would certainly go a long way to reducing the 3000 new students per year in public schools. I for one would be more than pleased to have that choice.
Posted by michaelagarcia (anonymous) on September 18, 2008 at 4:26 p.m. (Suggest removal)
How are hybrid cars and trucks taxed in Loudoun County?
Hybrid motor vehicles, or those which use clean special fuels, as defined in Virginia Code Section 46.2-749.3, are taxed at the separate rate for clean special fuels vehicles which is annually set by the Board of Supervisors. The 2007 rate is $0.01 per $100 of assessed value, which is lower rate than that on the general class of personal property, which in 2007 is $4.20. Hybrid vehicles are assessed at the average loan value published in the January 1, Eastern Edition N.A.D.A. (National Automobile Dealers Association) Official Used Car Guide or the January 1, National Edition N.A.D.A. Official Older Car Guide. For unlisted models, assessment is based on a percentage of M.S.R.P or original cost reported to D.M.V.
----
I believe if your property tax value is less than $20 they will not send a car tax bill. It appears you in live in a town so maybe your car tax is going to your town and they have different rules, but one of the county supervisors is on record as saying no Hybrid car owner qualifies for paying the county car tax.
Also, aircraft is taxed at one penny.
---
I bet your taxes went up this year along with mine and just about everybody elses. I'm referring to hundreds of track homes that were assessed as of January 1 were assessed too low based off 4Q sales data, which is the data the county assessors office uses. Each house is suppose to be assessed at 100% market value. I understand that is too difficult to do, but there are many track homes in the Ashburn community assessed at $100k lower than 4Q07 neighborhood sales. The assessors office should be able to get within 90% accuracy on track homes where there are ample data.
As of Jan 1, my home was assessed at about 98% of what neighborhood sales were going at. I wish others were paying at a similar rate and maybe there would be more revenue. If your house was worth $500k on Jan 1 and they stuck you with a $7k tax bill you should have fought it so I am led to believe your house was worth around $625k on Jan 1 and assessed fairly close to 100% unlike many in the county. A 20% drop in value in 9 months is pretty steep, but possible depending on location. Or is the 7k both town and county R/E taxes?
Posted by RustNeverSleeps (anonymous) on September 18, 2008 at 5:21 p.m. (Suggest removal)
The Schools have lots of places where they can trim the budget. Start there.
Posted by CountrySide2cents (anonymous) on September 18, 2008 at 5:57 p.m. (Suggest removal)
I think the meals tax is a good idea. Supervisor Miller campaigned on diversifying revenue to more than property taxes. The meals tax will affect more than Loudoun County residents. Anyone who eats at Dulles Airport, anyone who eats out in our county at all, will get the tax. Leesburg and Purcellville already have it. This is just adding the rest of the County too. We need to shift our tax burden so it's not weighted so heavily on property. This is a good first step.
Posted by filmjoy (anonymous) on September 18, 2008 at 8:25 p.m. (Suggest removal)
I will significantly reduce my eating in Loudoun if a Meals Tax is implemented. I think many others in the Sterling area will as well.
Posted by A_10star901 (anonymous) on September 18, 2008 at 9:05 p.m. (Suggest removal)
The deficit will be over $200 million before February rolls around.
Posted by LoudounModerate (anonymous) on September 18, 2008 at 9:14 p.m. (Suggest removal)
I understand a few people will stop eating out in Loudoun out of principle and I think that's fine, but I bet most people won't really notice. And it does diversify the tax base. Thanks for pointing that out filmjoy.
I also think it's great that the bos is looking at ending hybrid and airplane tax breaks. I they really are preparing for a dooms day scenario next year and I think we should all be proud they're on the ball here. I mean, 176 million shortfall is a big deal and this all looks pretty smart to me. Diversify, prepare the schools for drastic change, and then brace for deep cuts.
Posted by GR8PMPKN (anonymous) on September 18, 2008 at 10:51 p.m. (Suggest removal)
If Loudoun were to implement E-Verify in County Government Agencies, the county might be suprised how much money is being paid out to non-eligible applicants for tax funded benefits and services.
Other than upgrading existing software, there is no cost for this service. Verification takes minutes. And, the savings to County tax payers could easily be in the millions.
Fairfax and Loudon are crying the loudest about budget shortfalls, yet both refuse to verify that those receiving tax funded benefits and services are actually eligible for them.
If the tax payers and voters nod to county agencies to give away our tax dollars to those who are not entitled, then we deserve inflated proverty value assessments and subsequent tax bills. And we have no right to complain.
Posted by asmith1 (anonymous) on September 19, 2008 at 6:59 a.m. (Suggest removal)
I believe that the Supreme Court has ruled that localities must educate every child that resides in its borders, whether they are here legally or not. I don't see any way to limit the number of new students in the schools. The slowdown in new development will help temporarily, but as soon as the market turns Loudoun will begin to see higher growth rates again. How about a one child per family rule like China? (Just kidding)
Posted by romito (anonymous) on September 19, 2008 at 7:23 a.m. (Suggest removal)
The Supreme Court ruled STANDARD education through Grade 12 must be made available to every child residing in the US, regardless of legal status. HOWEVER, it did not rule that localities must teach in any language other than English (except as an elective) or approve applications submitted by illegal aliens for tax funded benefits and services for these children (even if they are US citizens). Nor do the courts mandate the children of illegal aliens be offered free meals, after school care and school supplies subsidies. American born children of illegal aliens are eligible for these services BUT application must be filed by a Citizen – i.e. court appointed Child Advocate. As is also the case with food stamps, WIC, housing subsidies, etal. The churches provided these services in the past, but even the churches are starting to see how illegal aliens are abusing the system, demanding more and more not because of need but as a perceived entitlement. It is estimated that $3,500 of the cost to teach a student in Loudon County is for special education programs and subsidies for ESOL students. Do the math, and calculate the savings to tax payers … when the law is followed as ruled by the courts. Its one thing to reach out and help those in need – it’s another thing entirely when illegal aliens DEMAND benefits and services to which they are not entitled because leaders are too cowardly to implement E-Verify and just say no to those who are not eligible.
Posted by asmith1 (anonymous) on September 19, 2008 at 8:33 a.m. (Suggest removal)
asmith1 - If you are saying that special education services and ESL classes should be withheld from non-citizen children, you probably will find the schools then in violation of the federal No Child Left Behind legislation. You may have a legitimate axe to grind, but it is more appropriately aimed at the federal government for lax immigration law enforcement and the private companies and individuals who pay low wages for the services provided by illegals.
Posted by romito (anonymous) on September 19, 2008 at 9:06 a.m. (Suggest removal)
Romito, you're preaching to the choir. However, PWC refused to adopt the "can't do anything because the Federal Government let us down" cop out that Loudon and Fairfax are doing. PWC's budget is strained but not broken as Loudon and Fairfax. Because PWC cracked down on illegal aliens, they left the county and reduced the need for ESOL in the school system by nearly 700 students (do the math). Unfortunately, they fled to Fairfax, Loudon and Arlington because the welcome mat is still rolled out for them, and it is the LOCAL tax payers who must pick up the tab, not the Federal Government. And once again, if Fairfax and Loudon homes assessments are inflated, along with property taxes, the tax payers have only themselves to blame. As an FYI: The “leaders” work for the citizens; not the other way around. PWC citizens figured that out – how long will it take the citizens of Loudon and Fairfax?
Posted by asmith1 (anonymous) on September 19, 2008 at 9:54 a.m. (Suggest removal)
... what asmith1 said. In addition, as soon as enforcement is increased as it was in PW County, illegal parents became wary of sending their kids to school, where they might be "tracked." Then they moved out of the county, according to the PW BoS chairman, who was interviewed on the radio a few days ago. According to him, most of the illegals moved to Ffx County. The interviewer asked him if he had a message for the Ffx BoS. With a smirk in his voice, the PW Chairman said: "Goooood luuuuuuuuck!" It was really funny :)
Posted by Justthefacts (anonymous) on September 19, 2008 at 2:24 p.m. (Suggest removal)
How about eliminating all "non-academic" school programs?
Art, Music, Sports ......
Posted by CountrySide2cents (anonymous) on September 19, 2008 at 5:46 p.m. (Suggest removal)
"I own a hybrid and I pay taxes. Where did you get your information?"
Posted by macdizzle4rizzle on September 18, 2008 at 1:15 p.m.
The owner of a hybrid valued at $40,000 would pay a grand total of $2.84 (yes, TWO DOLLARS and EIGHTY FOUR CENTS) in car tax. So theoretically, you pay taxes, but...
According to Loudoun County property tax rates:
http://inter4.loudoun.gov/Default.aspx?t...
hybrid owners pay $0.01 per $100 of assessed value. According to my latest Loudoun car tax bill, the first $20K of assessed value receives 58% car tax relief.
Posted by bobi1 (anonymous) on September 19, 2008 at 5:53 p.m. (Suggest removal)
How about eliminating all "non-academic" school programs?
Art, Music, Sports ......
Posted by CountrySide2cents (anonymous) on September 19, 2008 at 5:46 p.m.
Yeah Ok, lets make it so none of our kids can get into a respectable college. Let's make it so none of our kids are well-rounded indviduals. Great idea.
Posted by A_10star901 (anonymous) on September 19, 2008 at 9:53 p.m. (Suggest removal)
Let's see - much of the impact on the budget is due to rising health costs and to more children in the schools.
Here's a brainstorm: (1) ENFORCE E-VERIFY for all businesses doing business with the county [this was recently upheld by the 9th Circuit Court - a notoriously liberal bunch];
(2)park an ICE van outside the emergency rooms and pick up all the illegal alien invaders making use of this expensive service;
(3) and require social security numbers for the parents of the enrolling children, matching them against 'real' citizens' names.
Then watch the decline in the budget costs as the illegal alien invaders bring their barrio to some other sanctuary location.
Posted by nobamessiah (anonymous) on September 20, 2008 at 10:37 a.m. (Suggest removal)
It is pretty sad if your kids can't get into a respectable college with high scores in academic subjects.The rest is "nice to have" but not required and is luxury we can no longer afford.
Posted by CountrySide2cents (anonymous) on September 20, 2008 at 8:57 p.m. (Suggest removal)
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