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County budget

181 Victims of Tax Abuse: The Board of Supervisors and School Board should give the approximately 12,000 classroom teachers salary increases, but give no raises to other school and county employees.  They should hold real-estate taxes constant to spare the moderately poor, who are the most hurt by real-estate tax increases, many fleeing the county when taxes are raised and others becoming welfare dependent.  Politicians gain by raising taxes so they can pay their employees more, employees who will dutifully re-elect them.  Politicians gain also by making more people dependent on government, people who will re-elect them so welfare continues.  Selfishness, not altruism, makes them raise taxes.  Eventually, they will suffer the consequences of selfishness. 

105 Is a FY2015 Increase in the Real-Estate Tax Rate Affordable?:  The real-estate tax rate should be set in part by the ability of the citizens to pay the tax. The ability can be estimated on the basis of the median household income.  Because the median income increased at the same rate as the real-estate values, for the ability to pay to be unchanged, the sum of the real-estate tax rate and the stormwater rate should remain unchanged from the current rate.  Increasing the sum of the rates will add to the government burden on the taxpayer.
083 Long-Term FCPS Pension Costs: If all employees worked for 30 years, then retired, the actuarial liability would double from its present value. The present funding budget is relying on attrition. At present, only approximately 8% of those hired remain with the FCPS for 30 years until retirement. The adequacy of the County and employee contributions depends strongly on the return on investment, especially the asset appreciation. The return on investment (ROI), including income and appreciation, was 11.2% in 2010, as corrected for inflation. The actuarial computations are based on 3.61%. At a steady 11.2% ROI, the current unfunded actuarial liability ($562M) would be quickly overcome; however, if the ROI were as low as 5.5%, the unfunded actuarial liability would double. Because the number of employees today is twice what it was 30 years ago, the actuarial liability will grow substantially in future years as the present employees retire. Eventually, each household will be paying $359 in property taxes, or approximately 7.1% of the property tax, to pay for the teacher pensions. The current unfunded actuarial liability can be more than overcome if the age of retirement is changed from the current 56 to the private-sector retirement age of 65. Full report can be downloaded, below. 07/26/2012

Fred Costello,
Aug 27, 2012, 11:43 AM