Weather And Budget Season Heating Up
Flowers are blooming, the air is getting warmer and things are really starting to heat up in budget meetings across the county. Spring has arrived! Last year was a fairly benign year as far as budgets went in most of the municipalities as well as the county. I fear that it was the calm before the storm because there area already some serious issues on the table and budget season has just begun.
The Jefferson County Budget Committee is a pretty conservative bunch and it is clear from their no increase mandate at the onset of budget preparation that they are not looking to raise property taxes. Jefferson County property tax payers have had several years of flat property tax and that is music to the ears of those that are looking for a tight bottom line. But, there are inherit issues with holding the reins so tightly. One is that there is no such thing as a flat budget because there are uncontrollable increases like insurance. If the bottom line must remain flat then the increase has to be absorbed inside the budget and that means less money in the line items that absorb the increase. Now, there are those who will point out that both the County and the Schools have rolled funds back into their account at the end of the fiscal year. And, they are right. Last year the Department of Education had a nearly $2 million dollar roll over and, though the County wasn’t as healthy, it was still significant. Is it a result of good fiscal management by the individual departments or a result of over budgeting by the departments? Actually, it is a matter of design. Two years ago the County was in the hole going into the budget process. Now the structure doesn’t allow departments to overspend and generally, baring a big snafu, money rolls back into fund balance. The amount may not be a generous as last year but it is better than starting the year in debt.
Department Heads might differ in their view of the budget and it is true that some departments have been left with their hand out for several cycles, putting things like automotive purchases on hold to meet the mandate. Although very few will complain about no property tax increase, there is a school of thought that believes that it is best to have regular, minimal tax increases rather than waiting for the big one. You don’t have to look much farther than New Market to see what happens when the outflow overtakes the inflow. The City is facing serious financial difficulties and it has left a new administration struggling to meet the bills. I have never been one to believe that government, either local, county, state or national, is in the business of “saving” the people’s money. Government finances are vastly different from personal finances and I would much rather have the excess in my bank account than Uncle Sam’s in any of his various forms. But, the government must function for the good of the people and that does take money. It is a fine but distinct line that I believe should be walked otherwise fiscal mismanagement through overspending or under collecting will negatively impact the very people who pay the bills.
New Market isn’t the only municipality that is facing issues of their own. Dandridge is struggling to balance the County resident’s need for fire service with the Town’s relatively small number of city tax payers that are covering more than their fair share of the bill. White Pine has infrastructure needs and Jefferson City is looking to revitalize which is an expensive proposition. In actuality, it appears that the County may be in better shape than some of the City folk and that is a testament to the fiscal management of elected and appointed officials. It is looking like a significant drop in debt service will come in 2023 but that is still several years off. I just wonder if this would be a good time to consider what another penny or two on the property tax rate could mean to the next building project or high dollar need. Especially if it is managed correctly. Of course, it would be even better if it were to come from an increase in sales tax revenue rather than property tax but that could be a dicey proposition. Right now, Dandridge is looking good on the sales tax front and Jefferson City appears to be relatively level but the County has trended down for a couple of months in 2017 and that is unusual since the County has enjoyed healthy growth for awhile now. We are still ahead year to date but it is worth watching and could be a point of concern.
It is a rare day that I totally agree with any elected official. That is just the nature of the beast and it doesn’t mean that I don’t respect our differences. I respect their willingness to govern. It is not everyone’s cup of tea and it really is a thankless job, especially during budget season. We live in a County that is ripe with different needs which makes it difficult in decision making. Our cities have very different concerns from our County and from each other.
So, spring has sprung and budget season has begun. One or the other or both have been known to cause serious discomfort. For those already looking for relief, it won’t be long until July 1st, though it will likely get much hotter, both literally and figuratively, between then and now.
