Testimonies to the Fairfax County Board of Supervisors on the County Budget - 04/13/2021
The Board of Supervisors held its final public hearing on property tax increases on April 13. Five members of the Fairfax County Taxpayers Alliance made strong protests over the proposed 4%+ tax gouge:
- Charles McAndrew - FCTA Board member
- Arthur Purves - FCTA President
- Bill Peabody - FCTA Board member
- Miriam Sullivan - FCTA Board member
- Thomas Cranmer - FCTA Board member
Testimony from Charles McAndrew - Oak Hill
| To: | Mr. Jeffrey McKay Chairman, Fairfax Co. Board of Supervisors |
| Mrs. Kathy Smith | Fairfax County | Board of Supervisors |
| Dr. Scott Brabrand | Superintendent | FCPS |
Dear Mr. McKay, Mrs. Smith and Dr. Brabrand:
My wife and I have been homeowners and taxpayers in Fairfax County since 1968. I am a Board Member of the Fairfax County Taxpayers Alliance (FCTA). My wife and I are protesting the increase in the real estate taxes. As I understand, the County Board plans to implement a real estate tax rate of $1.15. This represents an average of 4.25% real estate tax hike, which could cost the homeowner an increase of almost $300 over their current real estate taxes. This continues a two-decade trend when the County Board of Supervisors have increased real estate taxes three times faster than the homeowner's income, which has barely kept up with inflation. This tax rate increase of 4.25% greatly exceeds the Consumer Price Index (inflation rate) for the calendar year 2020 of approximately of 1.2%.
There could be a way to reduce the county budget. Last year at this time, the Fairfax County Public Schools (FCPS) had approximately 189,000 students. Now I understand that the FCPS may have lost around 9,000 students due to frustration with virtual learning, COVID, and other issues. At the current average cost per student of $16,499 and the lost of perhaps 9,000 students could reduce the FCPS budget by $149,000 ($16.5 x 9,000). As I understand, every penny increase in the real estate taxes represents $21 million and therefore, the real estate tax rate could be reduced by 7 cents down to $1.08 (149K divided by 21).
It is time to raise the pension age to a minimum of 62 for newly hired employees. Over a period of time, this would help reduce the overall budget.
Lastly, a few years ago, I recommended that the County set up an Office of Inspector General (OIG). I understand that the county and the FCPS have a few auditors on their staffs. In a large county of Fairfax with a grand total of around $9 billion budget, the County should have an OIG! I have noted that Montgomery County, MD and the D.C. Governments have the OIG. The mission of the OIG is to conduct independent audits, investigations, inspections and evaluations to promote economy, efficiency, and accountability to prevent and detect waste, fraud, abuse, and mismanagement in the programs and operations of an organization. This is an independent office that strives to maintain the highest levels of trust, integrity, and professionalism. The investigators have the authority to prosecute individuals for fraud. The IG could report to the Chairman of the County Board and for the FCPS, the Chairman of the FCPS Board. In my experience in the financial management area of the Federal Government, the OIG has paid for itself through their findings and recommendations. Therefore, I recommend that the County along with the FCPS implement an OIG!
In conclusion, I also want to compliment your Chief Financial Officer, Mr. Joseph Mondero. You are fortunate to have a very competent CFO!
Thank you for your attention!
Testimony from Arthur Purves - Vienna
Members of the Board:
Thank you for the opportunity to testify. I am Arthur Purves and address you as president of the Fairfax County Taxpayers Alliance. We have three requests and two suggestions:
First, when you speak of lowering the real estate tax rate or keeping it the same as last year, also tell how much residential assessments have increased. Instead of saying the advertised tax rate of $1.15 is the same as last year and that homeowner assessments are increasing, add that the average assessment increase is 4.25%. That way homeowners will know how much their real estate tax will increase, even if the rate is unchanged.
Second, we heard that at the Mason District budget town hall, the supervisor said that real estate taxes are increasing because of assessments. This is false, as the supervisors can lower the tax rate to offset the assessment increase. Please be honest with your constituents.
Third, please state that the advertised tax rate for next year is $1.18, not $1.15. Please clarify that the real estate tax bill includes another 3 ¼ cent rate for stormwater. You could also add that the rate is $1.23 for Tysons Service District and $1.39 for Reston Service District residential properties. Please give your constituents complete information.
For the current fiscal year, the county has received nearly $500 million in COVID relief funds and expects to receive another $200 million next year. We know that COVID money cannot be used to offset reductions in the real estate tax rate.
Virginia law, however, requires supervisors to lower the tax rate to offset the increase in commercial and residential assessments. As you know that lowered rate is $1.13. Therefore, the $1.15 advertised rate is actually a 2-cent increase, which generates $54 million more revenue.
Our first suggestion is that you do not raise the rate to $1.15 but adopt the lowered rate of $1.13 and use COVID funds to make up the difference.
As you also know, residential assessments increased much more than commercial assessments, which actually fell. The rate that would offset the increase in residential assessments is $1.10. Therefore, the advertised rate represents a 5-cent increase for homeowners.
Our second suggestion is that since any rate above $1.10 represents a tax rate increase for homeowners that you adopt the $1.10 rate. Eighty percent of your real estate taxes come from homeowners.
We understand that would lower real estate tax revenues by $135 million, but you could make that up from COVID funds.
Thank you.
Testimony from Bill Peabody - Springfield
We have a budget year where the county holds excess of Federal funds in an amount roughly equal to over five years of tax increases.
The real estate tax increase is stiff in relation to inflation (4.25% vs. 1.3%, or or 3.25 times inflation). This may be a record. Focusing on real estate is having decreasing marginal returns. While the county's aggregate wealth may be increasing, as of this writing about 14 billion in adjusted gross income has left the county. The high income workers are tending to their jobs and low income people find Fairfax to be most generous. Both ESOL and subsidized lunches are up 50% since 2000.
It appears those over 60 in the middle class are leaving. This is bad since seniors don't load the schools or aggravate law enforcement. They don't even clog the roads at rush hour. Since schools are over 52% of expenditures, with law enforcement being only 12%, seniors as a group offer the county a 64% discount.
UNCrime: People over 60 have seen the get out of jail free card before. Ignoring ICE retainers and declaring felonies misdemeanors isn't fooling anyone. The Commonwealth attorney for Fairfax will not prosecute simple assault. Assault can impair an elderly person for life.
What to do?
Raising the retirement age from 55 to 62 or the new post-Covid private sector age of 66 would save plenty. An annuity chart shows a $5,000 a month payout worth $1,300,000 at age 55 vs. age 66 at $1,000,000. States and their counties have raised retirement ages. (Example: NY age 63, IL 67, TN 65, and SC 65.) More will as soon as the Covid money runs out.
Skip hiring a seven-man energy team. Skip hiring 15 staff for a Commonwealth attorney that will not be prosecuting theft under $1000, simple assault, and other reclassified crimes. A truly independent auditor might help. If he/she can't save the county 5 to 10 times their pay, fire him.
Thank you.
Testimony from Miriam Sullivan - Mt Vernon
My name is Miriam Sullivan and I'm a longtime citizen, taxpayer, senior and resident of Fairfax County.
My concerns addressed here today cover three (3) main topics: 1-County retirement age; 2-Tax Relief; 3-Teachers' pay & FCPS.
Fairfax County employees are eligible to retire with full pensions at age 55, while private sector and US federal government employees cannot retire until age 65. Also, Fairfax county contributes about 38% into pension funds, while the private sector and US federal government contribute about 3%-5% into employees' retirement pensions. As you can see, this is not comparable, and should be raised to be more appropriate and fair and reduced contributions to employees' retirement pensions by the County.
Tax Relief: I get tax relief and it's a big help to me and a blessing. Tax relief requirements in Fairfax County are under $52,000 in income. In Prince William county you can make $92,000 in income and qualify for tax relief. Fairfax county hasn't raised the threshold in several years, unlike Prince William county.
FCPS teachers' union want a 4-5% pay raise, which is shocking -- especially, with the schools closed for several months. The teachers, bus drivers, cafeteria staff, custodial, teachers' aides all got full pay during the Covid lockdown.
About 9,000 students have withdrawn from Fairfax county public schools and are in private schools or home-schooled now. The cost savings of about $16,000 per student should be returned to taxpayers in the form of a check. Another way to credit the money back to taxpayers would be to deduct $4,000 from homeowners', real-estate bill coming due for payment.
$16,000 cost per student divide in half, or 50%, equals $8,000. Half of $8,000 = $4000 and is 25% of savings for each student who has withdrawn from FCPS.
Testimony from Thomas Cranmer - Great Falls
Thanks for this opportunity to discuss the Fairfax budgets and related matters. I am Thomas Cranmer, living in Great Falls for 30 years. I am a fellow at the American Center for Democracy and the First VP at the Fairfax County Taxpayers' Alliance.
The BOS' prior actions show you favor Fairfax County employees, over the ordinary taxpayers. My comments relate to the letters I sent in March to each of you and the Supplemental Budget you adopted 23 March for the 12-month period ending 30 June 2021.
Many predictions about school enrollment indicate that 16% of children will be taken from government schools and placed in private schools or homeschools. Since you did not respond to my letter about FCPS enrollment calculations, it seems we should assume out of 189,000 students enrolled last year, 16%, or 30,241 will not attend FCPS.
The school operating budget on your Attachment One is $3.2 billion. 16% of that is $512 million, which divided by 30,241 kids equals $17,000 per child out of the school system. The Taxpayers' Alliance and I still recommend that the County pay $17,000 to every real estate tax paying family for each child taken or who kept children out of FCPS due to your actions.
We further recommend that each child who decides to stay in the indoctrinating FCPS system be allowed to attend school immediately with three-foot spacing. I cited in my letter the CDC Science Brief as justifying this as safe for teachers and students.
I continue to urge the BOS to allow the Thomas Jefferson school to continue its long-standing policy of merit-based admissions, based on test scores, not race. With the apparent current policy of racial preferences to exclude qualified "Asian Americans" [Kim Crow?], the BOS and School Board appear to be composed of racists. You would label half of my family as "Japanese-American". They resent this racism from past history, including the Democrat's imprisonment and confiscation of their assets during WWII. One of my granddaughters was a runner-up for the National History prize on this subject. She is now a college astrophysics major -- but might have been excluded from TJ as not meeting artificial racial quotas. Our family regard themselves as AMERICANS.
Incidentally rather than repeat what Arthur Purves, Chuck McAndrew and Bill Peabody testified on 13 April, I endorse everything they said. The budget supports Penny Gross' supplementary figures.
Please consider the dangers to citizens from taking people into Fairfax who are crossing the border illegally and not being checked for the Chinese Communist Party Wuhan Virus and other communicable diseases. Your health department even has a full-time employee for TB, which had been wiped out in the US. Many of the aliens have never been in school or seen a medical doctor. Get the picture?
Another important recommendation is to decrease the budget of the public prosecutor. He sides with criminals. He won’t prosecute theft of less than $1,000 or even sexual predators. Citizens are trying to recall him.
If you want to be competitive with other jurisdictions, please recognize the tax reductions in Loudoun County.
Thank you for listening.