No consensus yet on tax rate increase

Carpenter County leaders are trying to determine if the school board and business community might endorse an increase in the property tax rate if they believe it is necessary to maintain critical services. But a polling by the Chesterfield Observer produced a mixed bag of responses with many wanting more information before deciding about any recommendation.

Some believe a tax rate increase might be more politically feasible for supervisors if the school board endorses it first. Even if the supervisors vote to increase the rate this April, it’s likely that increase will be needed the following year as well – leading into the November 2011 elections for both supervisors and the school board. Opinions by school board members run the gamut without a consensus forming yet.

Midlothian representative Patty Carpenter thinks it will be necessary to raise the rate, and she would advocate for it. “Otherwise, critical programs and services will have to be cut,” she said.

Trammell School Board Chairman Marshall Trammell (Bermuda District) and Matoaca member Omarh Rajah occupy the other end of the spectrum.

“The issue is a bit premature, but I’m not ready to advocate for a property tax rate increase,” said Trammell. “I think it’s unfair for the school board to be put in this position since this board [of supervisors] and the previous board dropped the tax rate so much against the advice from the school board.”

The current estimate for the shortfall for the FY11 budget (that begins July 1) is $55-$60 million, and about half of that is for Chesterfield County Public Schools (CCPS). But that’s before county government and CCPS begin cutting spending. It also assumes state funding remains constant, and Chesterfield leaders are fearful additional cuts will be required.

Rajah “This is a decision for the supervisors, but I think there are options so the rate won’t have to increase,” said Rajah. “First, the school districts should be realigned to avoid overcrowding, and second, we should increase our online capabilities. That would allow some students to be educated at a faster pace. I think home-schooled kids could be added to our online programs, which would increase the revenue to the school system, while also making them eligible to play in our athletic programs.”

In April 2008, the current board reduced the rate from 97 cents per $100 of assessed value to 95 cents. Each penny on the rate equals about $3.2 million in county revenue with CCPS getting about half of it.

Clover Hill member Dianne Pettitt and Vice Chairman David Wyman (Dale District) are somewhere in between.

Pettitt “It will be some combination of cuts and revenue,” said Pettitt. “The board of supervisors should consider raising the tax rate, and the supervisors know our position so I don’t think a [school board] resolution [to raise the rate] is necessary.”

Wyman said last month it was “premature” for the board to decide whether it should endorse a hike. First, he wanted to know what the shortfall would be for CCPS. But he conceded that if the shortfall is at least $25 million, “We would need some adjustment to the property tax rate.”

Meanwhile, according to County Administrator Jay Stegmaier, the county government is also reaching out to the business community “to tell them the causes and magnitude and the impact it’s having on the budget.” He has already met with some members of the Chesterfield Business Council (CBC), an extension of the Greater Richmond Chamber of Commerce, and plans to meet with the Chesterfield County Chamber of Commerce.

Wyman “We’re trying to alert the community about how the [financial] environment has affected our funding,” explained Stegmaier, “without jumping into the solution stage. Phase two will be options and solutions.”

“We’re at least open to the possibility after we see the appropriate cuts by the county and school system,” said CBC Chairman John Easter.

Frank Beale is a member of the Chesterfield chamber’s board and will become its chairman next month. He said he couldn’t comment because the chamber’s board, executive committee and government relations committee hasn’t discussed the issue yet.

There are indications county teachers and education proponents are organizing to lobby against cuts in the CCPS budget. Last month at Board Chairman Art Warren’s community meeting, about 100 citizens turned out – a much higher participation than usual. Last week, about 200 citizens showed up at Vice Chairman Dan Gecker’s meeting in Midlothian. Both supervisors said there were many advocates for CCPS who attended.