No to TSPLOST, No to Davis

Davis Transportation Tax, TSPLOST, is coming up for a vote in July. Readers know I am not for Davis’ potential 14.3% sales tax increase mainly because in 2013 Henry County will vote on its special local optional sales tax (SPLOST) that is set to expire in 2014.

The county SPLOST will raise the exact same revenue the new Davis transportation tax will foster. Every road project on the list Henry would receive from the new Davis tax can be done with the 2013 vote. Why do we need an additional new tax is beyond me.

Davis, the only Henry County Republican incumbent that voted for his potential tax increase TSPLOST said prior to his yes vote commuter rail does not work. We were wasting our money on commuter rail that it won’t work in Georgia -yet his vote will fund commuter rail projects.

PolitiFact of the AJC weighed in on this very issue, did Georgia legislators break their pledge to the Americans for Tax Reform (ATR) when they voted for the Transportation Investment Act. Davis made a huge to do out of being the only candidate to sign the pledge in his mail pieces during the last election cycle. Davis claimed to be a no tax increase advocate and would continue to fight for us. Most likely Davis will continue his rants about cutting taxes and keeping his word, however he might need to read up on what he actually did.

See PolitiFact went to the source, the ATR and asked questions about this very subject.

“We asked Norquist whether Georgia lawmakers who’ve spoken in favor of the referendum have violated the pledge they’ve signed. “It does violate the pledge,” he said. “It’s a rather significant tax increase.” AJC PolitiFact

And

“The problem for lawmakers who signed the pledge is it specifically states “that I will oppose and veto any and all efforts to increase taxes.”

The T-SPLOST is an increase in the sales tax. There are no cuts to make it revenue-neutral. Deal Davis gets a Full Flop.” AJC PolitiFact

Government has an insatiable appetite for tax revenue. We have had some difficult times with the economy of Obama where communities have been hit hard with falling home values. Here in Henry, the Board of Commissioners has a $10 million dollar hole to fix. Not one sitting commissioner other than Brian Preston offered a solution on how to fix the deficit without placing it on the backs of home owners.

The increased county budget Bowman, Holder, and Stamey passed comes with a price and most likely it will cost homeowners another 2 mil increase. None of the commissioners have signed the ATR pledge. Preston would be the only Republican to not to have broken it if they had signed.

With the likelihood of our property taxes going up, Davis putting us in with 9 other counties that can raise our sales taxes, and now we get the new Davis toll road to go to work on, where’s it going to stop? Davis keeps adding new ways to get into our bank accounts.

We cannot think that taxing ourselves out of this mess is the right way to go. The trillions of dollars the Obama administration has put us in debt in has yet to make this economy be healthy. If it is not good for our federal government how can it be good for our local pockets?

Davis broke his pledge not to raise taxes. He tells us we are wasting money on commuter rail but votes for it. Davis brings us his toll road and his transportation tax and wants your vote to continue the charade. We can do better than to return Davis to Atlanta. It is why I volunteer in Dale Rutledge’s campaign and am not going to vote for Davis’ TSPLOST.

 

Davis Brings Two New Transportation Taxes to Henry

42,000 are not greater than 400,000. Steve Davis should have known that before he voted for his transportation tax, TSPLOST. Davis put Henry in the 10 county region and forced Henry to be at the mercy of 358,000 other expected voters who can raise our local sales tax.

Davis continues to be silent on his transportation tax efforts. His “no stance” (Rockdale News) statement rings loud and clear with voters in the 109^th district. Voters know Davis flip flopped from a no to a yes vote passing the Transportation Investment Act and they know he is in favor of increasing the sales tax in Henry County, GA by 14.3%.

What made him change his mind? Was it the need for the Georgia Chamber of Commerce to say he’s a keen guy? Was it going out on $250 dinners or $800 trips?

Davis continues to tell us he has championed the effort of I-75. Back in his last election cycle where he paid his wife thousands of dollars to “organize”, he claimed he had secured $80 million to widen I-75. No dirt has turned since he personally obtained the $80 million two years ago. In his latest efforts he tells the voters he successfully funded I-75 but forgets the details of what he did. He gave us another tax!

“We are not in the condition financially to build interstate projects that are not toll, so it will be some form of toll, so anybody who will be using these lanes will have to pay to use them.” Henry County

This time Davis forgets to inform voters he brought us toll lanes. Davis wants us to pay a tax daily to go to work. Some success, it’s nothing more than new taxes that Davis pledge to oppose.

Every major interstate in the other 9 counties Davis put us in TSPLOST with has their millions in interstate improvements none came with tolls. Some received billions. Davis and his success got us 2 lanes where we will pay daily to use them. Maybe he should have read about the Express lanes up in Gwinnett and how they just loved them so much the governor had to step in and cut how much the state was going to charge.

Davis claims to have the insider track down at the capital and claims he brings us success in the way of $400 million in road projects and a billion dollars in education money (Proof Right May 12, 2012), but his successes are nothing more than new taxes. Does Davis skirt his pledge to not raise taxes with his achievement? The Davis TSPLOST and the Davis Toll Roads are new taxes he needs to answer for.

Just remember when you are paying more taxes on your purchase or ride on his toll road, Steve Davis broke his promise on not supporting new taxes.

Disclosure: I am not voting for Steve Davis or his transportation tax. I volunteer for Dale Rutledge’s campaign. I don’t like liver and onions or new taxes.

Davis’ TSPLOST is big in Dekalb and Fulton, Henry and Rockdale not so hot on it

As we already know, Steve Davis’ Transportation Tax T-SPLOST puts Henry County at the mercy of 9 other counties. Everyone in Henry can vote against the Davis TSPLSOT and we still could have our sales tax increased by 14.3%.

It was noted in back in August 2011 in 3-2, No Soup for You – Henry County, GA! 75% of the Davis TSPLOST vote is within 3 counties outside of Henry:

“You’re looking at Cobb, Gwinnett, Fulton and DeKalb represent 75 percent of the registered voters, just those four,” said Paul Bennecke, who is one of the privately funded strategists for the referendum campaign.  “I think if this executive roundtable and then roundtable deliver a project list that creates jobs, retains jobs, increases quality of life and reduces traffic, that’s something that’s going to sell it in all 10 counties.” AJC

In a poll of 850 likely primary voters we see Dekalb and Fulton counties overwhelmingly support raising Henry County’s sales taxes by a 20% margin. In outlying counties such as Henry it’s the opposite.

Davis has set Henry County up for a sales tax increase with his support of TSPLOST. He’s out of touch on the topic and because he voted for the TSPLOST Henry voters will have a small voice in the matter. Maybe he should have run a poll to see how Henry felt about tax increases before he voted to support it.

I am supporting Dale Rutledge for District 109, I volunteer in his campaign and will be voting against Davis’ TSPLOST.

More Taxes

We have blind mice in Henry County, GA.

 “Commissioners are considering any combination of the use of fund balance, a millage rate adjustment, and other increases in revenue in order to close the gap” most likely means tax hike coming.  There was only one sitting commissioner that voted against raising the budget nearly 10% above revenue projections.

Spending what is not there will create a $10 million dollar gap. The county manager and commissioners fail to shrink government excesses and create a multi-million dollar hole.

It’s true they have cut but they have not done all they could do. The only commissioner that voted against the increase was the ONLY commissioner that took time to study and develop an alternative plan to the county manager’s.

Now we see those at the county running scared of reality. Where were these commissioners over the last year or two when the values of property were falling? Certainly they did not wake up one morning and find a mess like this; they had to read the papers. Every month there is an article about home values falling or foreclosures hitting highs. Every commissioner (except the one that voted against the increase) and even the county manager waited too late to work on the budget.

Brian Preston needs to be re-elected. He’s the only one, the only Republican that did not vote for the increase.

Henry County Budget Talks

UP DATE

At today’s meeting the BOC voted on a budget of $115.5 million. That gives a $10 million+ hole. There was only one vote against rasing the budget to this level. Commissioner Brian Preston of District 2 voted against increasing the budget to such lofty levels and proposed $110 million budget.

Funny part was when Democrat Commissioner Bruce Holmes voted against the increase of the budget. Once Holmes found out it was raising the budget to cover furloughs and pads it for other increases he wanted, Holmes changed his vote to approval. He liked spending more money as did the other three Republicans that voted for passage.

What we are seeing is the Obamazation of Henry County via “Republicans.”  This action will most likely include a tax rate hike. However as Commissioners Warren Holder and Reid Bowman pointed out the tax payers won’t know that until after the July elections because they don’t set the rate until August. This is known as pulling a Pelosi because “ we have to pass the bill so that you can find out what is in it.”

At yesterday’s Henry County, GA budget meeting they touched on many topics, from no furlough days, to raises, to benefits, to supplemental pay. County Manager Fred Auletta laid out the budget in detail. Auletta placed in front of the board what each member had asked about, he covered what the review panel had asked questions on. Auletta created a menu of options for the board to consider.

The raw number for the budget as a starting point is $115.5 million. As you add bells and whistles on top of the baseline the budget grows and the hole deepens.

If the commissioners want no furlough days tack on $1.13 million. Each day is worth $281,685 dollars. If you take the pay increase for public safety as part of your likings then add $2.35 million. If you feel you cannot justify giving public safety a pay raise without giving other employees a raise then tack on another $425,000.

Just recall the $115.5 million dollar budget has a giant hole of $10.1 million to begin with so as each commissioner decides what needs to be added they dig the hole deeper.

Commissioner Brain Preston seemed to be the only commissioner engaged in the process of figuring out some way to not put the entire burden of the 30% tax rate increase on the backs of the property owners. Preston urged a sensible approach where the county, the tax payer, and the employees all shared in the pain of the down trend in the economy.

All the board members agreed to Preston’s idea of taking money from the county savings. That part was easy, even Democrat Commissioner Bruce Holmes who seemed to be bored to tears agreed. Holmes stated he would support moving money from the savings and raising taxes for no furloughs, not pay cuts, raises and no benefits cuts – spoken like a true tax and spend Democrat.

What other commissioners had a problem with was modernizing the benefits for the county. That is code for taking the Bugatti Veyron plans to Enzo Ferrari plans.

Henry has some of the best benefits in the state paid to our county employees. The health insurance is a prime example. Up until this new budget an employee could have their entire family covered 100%, no deductibles, no copayments for $318. The county picked up the other $996 of cost. The monthly cost on that plan was just under $100,000 a month for 189 employees. With insurance premiums going up again for the county this option will not be offered.

The new plan shows an 85%/15% with a $500 family deductible at a cost to employee of $140 and the county will pay the remaining $996. There are other options.

Preston showed that by modernizing the health benefit plan and still being one of the best in the metro area the county could save $1.375 million. This would be done through a combination of increasing the employee rate of contribution, adding tobacco-user surcharges in line with other counties, and spousal surcharge equal to other counties.

It was interesting to see the reaction of Reid Bowman and Warren Holder on the topic of surcharges. Bowman made the statement about charging why single out tobacco users only, why not overweight employees too? He also said the county should pay employees if they do not use the health insurance if we penalize those spouse that do. Preston did point out the fact the spousal surcharge would be for those who have insurance at other employment that do not use it because the county has such great benefits. It is a common practice.

The retirement benefit is also one the best in the area. It was glazed over quickly with Auletta stating the plan started off with a $20 million dollar hole that has to be funded. The plan has had some losses and they have been using higher rates of returns in the calculations, 7.5% that most believe to be unattainable on the longer term for such a plan.

Today an article entitled States Scaling Back Worker Pensions to Save Money states:

“What we’re doing today is not sustainable. Part of the reason we’re in this hole is for too many years, politicians made promises without paying for those promises,” Republican Gov. Bobby Jindal, Louisiana.

Louisiana is looking to change their benefits:

“Jindal wants to raise the contribution rate for current state workers and public college employees from 8 percent to 11 percent of their pay. He also wants to push the retirement age from as early as 55 for current workers to as late as age 67, depending on how many years they’ve been in the system and their age. He’s seeking to create a cheaper 401(k)-style of pension plan for new hires.”

Dare say our politicians have done the same but instead of looking at options to fix the giant hole they will ignore it because of lack of will. These options that Louisiana and other states have to make are the exact same ones Henry needs to make. We just need the commissioners to man up and take care of the problem instead of strapping on a Band-Aid. Revamping the retirement plan could save a million or more a year on the budget.

Preston was the only one willing to discuss the benefits and making changes and was shunned.

Here’s the menu again, raise rates 2.5 mils to cover the hole. Add all the bells and whistles and it goes to 3.47 mil addition. Four of the five sitting commissioners stated they were not for the full 30% tax increase. They all stated they were for pulling money out of the bank equal to a mil (estimated value of $4 million.) That makes the $10 million hole $6 million however now we add on the bells and whistles to the baseline. If they go all in damn the torpedoes then it’s a 2.47 mil increase. If they act like Republicans and run the government like a business (how many times have we heard that?) then we see reductions using Preston’s three prong approach and cut from $6 million to $4.74 million before they touch the Bugatti Veyron retirement plan.

That $4.74 million can be covered with a little more than a 1 mil increase. When we take into consideration the hospital 1 mil is going away this year then the net is a very minor increase to tax payers. We’ll see what the commissioners do today.

Preston showed how to reduce the budget hole where all feel some pain. No one gets laid off. The burden is not shifted all to the tax payers and the county keeps its services intact. Henry County could benefit in keeping Preston on the BOC. District 2 of Henry County should come out in force and support his re-election efforts. The only other announced candidate is talking about nothing but raising taxes and spending more money the county does not have. They have not shown any thought to fiscal responsibility and sounds more like the Democrat in the 5^th.

Here we go again

Charles Reddoch from the Henry Herald:

“A millage increase, with the values going down as much as they have, may mean that the taxes will go down, too,” he said. “The value that the millage is applied against has gone down enough, which might, even with a millage increase, result in a tax decrease.”

We’ve been down this road before:

When is an increase not an increase? When you are Henry County. 

Fuzzy Math

In the Budget Review Panel meetings many people stated they viewed raising the tax rate and paying less than they did the year before as not raising taxes.  I certainly did not agree.

If you have a job where you were paid $50, 000 and paid taxes of 12% or $6000 then the next year you were paid $41,500 and asked to pay $5900 did you pay more in taxes?

According to Reddoch, many of the panelist and quite a few Henry politicians you paid less in taxes. A hundred bucks less. Yet the rate increased to 14%. If the tax rate did not increase you would have paid less in taxes also, $4980. That tax rate increase was nearly $1000 or 18.5% increase. However the county wants to sugar coat it by telling you they did not raise your taxes.

 

I say Hogwash.

The county will hold a commissioner workshop sometime on Monday telling us how much pain they have incurred and what cuts they plan on having. They will tell about the possible tax increase. Problem is it’s in Room B with no record of the meeting except for what they write down; it won’t have all the theatrics or emotion if there is any. What time you asked? They do not tell us.

My guess is there’s a tax increase coming of at least 2.05 mil because that was laid out in the review panel meeting. With the vast majority of the panel behind the tax increase Fred Auletta most likely will take that as a green light and push maybe higher than was explained. Auletta is not accountable to the voters anymore. Auletta is not a policy maker any more but an employee whose job is to present options for the commissioners to examine then manage the county. Don’t get me wrong Auletta is valuable and his input is needed but he also needs to know he’s not going to vote on the budget, the commissioners will be and they set the policy.

I think I’ll take time off and head over to watch this meeting.

Disclosure: I live in Henry County, own property in Henry County, pay property taxes in Henry County, I vote in Henry County, I support Dale Rutledge for State Representative 109 and will vote against Steve Davis, have been called white trash among other things.