The Funding Locals Have Not – Money Spent In Advance

When one becomes elected to a local government the first lesion in reality is that money is on short supply.  Where that money goes is not totally controlled by them either.  State and Federal governments have mandates on all governments and funding, or money, is not always included.  Although both State and federal governments are quick to make a low interest loan and on rare occasions grants they expect you to come up with the needed funds.  So in the first year of office the newcomer to the local jurisdiction learns that they only have control of ten percent of the money collected by their jurisdiction.  Additionally they only have a ten percent on where, how, or for what that money goes for.  Imagine the state of Washington pleading poverty to Friday Harbor in the 1990’s when the town asked for a six million dollar grant to increase the capacity and update their sewer.  The year the town asked for the grant the state released figures form the previous year that in San Juan County the state received ninety one million in sales tax receipts, Poverty indeed!

Everyone I know can read their tax bill and when they read it some how they interpret it to mean that the town or the county is collecting all this money.  The fact is that in every state several taxing districts can and do collect taxes.  The newly elected to office holder learns in the first week just what line on that bill they have responsibility for, Typically state government collects most and schools are next yet the local school district is always poor.  Taxpayers read their bill and see the local school districts bond tax, maintenance tax and the state school tax then add the three items together.  Schools get a lot of money it is a fact that the only other parts of government or taxing districts that get more are fire departments or fire taxing districts

Then the people who receive their tax bills collar the elected official and want to know where all the money goes.  If the local budget is done correctly then the locals can be pointed to a budget that shows where all the money comes form.  Grants, loans, bonds, fees, payments for water, sewer and 5the like.  The budget will also list every item where money goes, block top, office supplies, computers rent, building and road upkeep.  An outstanding budget will even list they employees by name and provide a salary schedule so if you know that your next-door neighbor is the lead man at the road department and he has worked there twenty years you can see how much he makes.

Keep in mind though that local government can only spend money on ten percent of what needs to be done as the state and Federal governments have mandates for ninety percent of money collected.  ADA compliance, arterial road upkeep, storm water treatment, how many people needed to replace a valve on a water line and more, all of these things cost money and neither the federal, state or county governments really care if your town or city can afford it.

What is not done so much, I admit I could have done better, is to marshal other local governments and taxing districts and REQUIRE County, state and Federal governments to fund the mandates.  While it looks like local government has a lot of discretion spending money they actually do not.  All local governments could do a better job of explain to everyone at their location just what the money does go for,

So the next time you look at your property tax bill ask this question, “Why do I not see my taxes as part of spending in the town governments budget”.  If you live in Friday Harbor Washington you can forget this question as they have the only budget I know of that tells where it all comes from where it all goes and a narrative that explains it down to the last penny.

I have a blog roll on this blog and you can look at the budgets of other governments, if you can find them because on some web sites you will have to dig a bit.

Sherman

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