Testimonies to the Fairfax County Board of Supervisors on the County Budget - 04/16/2024
The Board of Supervisors held its final public hearing on property tax increases on April 16. (Local proposals: FxCo $1.135/$100; Arl $1.038; PrWm $0.966; Loudoun $0.875.) Three members of the Fairfax County Taxpayers Alliance made strong protests over the proposed 7% tax gouge:
- Arthur Purves - FCTA president at Budget Hearing
- Arthur Purves - FCTA president at Tax Rate Hearing
- Charles McAndrew - FCTA board member at Budget Hearing
- Charles McAndrew - FCTA board member at Tax Rate Hearing
- Tom Cranmer - FCTA board member at Budget Hearing
- Gazette Leader - FCTA in the news ...
Testimony from Arthur Purves (Vienna) at Budget Hearing
Members of the Board:
We appreciate county and school employees. As an election officer I've seen clean schools, dedicated teachers and administrators, and the hard work of the Office of Elections. It's unfortunate that the elaborate security measures for election day are bypassed by unrestricted absentee voting.
Before my wife passed away, the rescue squad came four times to help her. They were wonderful. My wife said, "You cannot pay the rescue squad too much!"
Similarly, I assume that county and school unions appreciate taxpayers, who provide $5 billion annually. You can tax us too much. If you do, we leave.
You are biting the hand that feeds you. Since FY2000 real estate taxes have been increasing three times faster than household income. The FY2025 average household tax is $8700. It would have been $4,500 less, if it had increased at the same rate as household income.
Taxpayers are leaving. According to the GMU Center for Regional Analysis, Fairfax County ranked 8th in the nation, between Philadelphia and Chicago, in domestic out-migration as a percent of population. The presentation was entitled "Symptoms of a Struggling Region: A Path to Mediocrity."
The deterioration was evident in the 1980s, when according to the book, The Fight for Fairfax, developer Til Hazel was "convinced that public schools are failing to prepare young people for college and the world at large ..." (p.249).
FY2025 raises and benefit rate hikes for 38,000 county and school employees will cost $367 million. The real estate and car tax hikes will raise less than that, $309 million.
Teachers will have had 20% in raises over three years. According to the county, inflation over those three years was 7 percent. Non-uniformed county employees would get 17% raises and uniformed would get raises between 21 and 27 percent over three years.
We are told that these raises are necessary because county salaries are not competitive. At a recent town hall, I asked my supervisor and the director of Management and Budget what is the average Fairfax County salary. Neither of them knew.
While the school system publishes the average teacher salary, which is increasing from $86K to $90K, the county's budget plan does not publish average salaries anywhere in its three-volume advertised budget. County salaries are "Fairfax Secret". However, we estimate the average county salary to be $95K, including $97K for police, and $102K for fire and rescue.
The reason for hiring shortages is the declining birth rate. There are not enough younger workers to replace retiring Baby Boomers. Raises will not fix that.
Moreover, neither the county nor schools have provided evidence that they're losing employees en masse due to compensation. Most would lose salary, pensions, and job security in the private sector.
Are 20% raises due to union campaign contributions? Democrat supervisors received $260K in union campaign contributions for last November.
We recommend that you increase FY2025 spending by $63 million instead of $363 million by freezing salaries until:
- The school system fixes its K-3 reading and arithmetic curricula so parents don't have to teach the basics at home and so low-income children master reading and arithmetic by the crucial 3rd grade;
- The county shows it is making business-friendly permitting and inspection processes and does not rely on casinos;
- The county and schools provide data showing that they are losing employees to the private sector due to compensation; and
- Supervisors pledge to not accept union contributions.
This still leaves $55 million for increased pension and insurance rates.
If unions want compensation that outpaces inflation, they should run a school system and county that increases household income faster than inflation. Schools need to teach phonics and multiplication tables. It's critical that schools provide our increasing low-income population an escape from poverty and a chance at the American Dream.
Thank you.
Testimony from Arthur Purves (Vienna) at Tax Rate Hearing
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.
This is a "Public Hearing on the Proposed Real Property Tax Increase" and is required by the code of Virginia. The announcement of this hearing states, in fine print, that the proposed tax rate increase is not 4 cents as appears in county press releases, but 6 cents. The extra two cents is due to rising residential and commercial assessments.
However, there are only six speakers, and they are all from the Taxpayers Alliance. Why so few?
It's because the supervisors want the public to think the rate increase is 4 cents and not 6 cents. So, this hearing is only announced in a single required notice in Washington Times legal section. This is effectively a secret hearing that no one is supposed to know about.
In fact, in introducing this hearing the director of the Department of Management and Budget, studiously avoided mentioning the 6-cent tax increase and inaccurately said this hearing is about a 4-cent increase. That is not true: This hearing is about a 6-cent tax increase, not a 4-cent increase.
Even the email from the clerk confirming my speaker number did not give the correct time of this hearing. This hearing was scheduled for 3 p.m. The email said 4 p.m.
So, to increase public input to the budget we recommend that you reform the Fairfax County assessment notice.
In Utah, the assessment notice includes the advertised tax rate, the homeowner's total tax at the advertised rate, and the date of the public hearing on tax increases -- all on the front side. The Utah "Truth in Taxation" law mandates this.
In contrast, the Fairfax assessment notice shows TBD instead of the advertised rate. The total tax increase is therefore understated because it does not include the 4-cent advertised rate change. Also, the notice does not mention this legally required public hearing.
The Fairfax assessment notice does mention a public budget hearing, to be held after this one, on the Advertised Budget Plan. It also states, in fine print, that the rate that would offset the assessment increase is $1.07, which is less than the current rate, and it describes the assessment appeal process. However, all this is in grayed out print on the reverse side with no reminder on the front to see the other side.
To reform the Fairfax assessment notice, replace TBD with the advertised rate. Show the homeowner’s tax at the advertised rate. Put the date of the budget hearings on the front side. Add "See other side" at the bottom. Print the reverse side in black ink. Make the 6-cent increase in the rate the headline.
State code says the assessment notice should show the "established" rate, which refers to the advertised rate, so the Virginia Code permits you to do this. Instead of sending the notice at the end of February, send it out the second week of March, right after the advertised rate is set.
We will be encouraging Taxpayer Alliance members to contact their supervisor to see if you support reforming the tax assessment notice. We think reforming the assessment notice would help you get more community input on the budget, something you profess to want.
Thank you.
From § 58.1-3330. Notice of change in assessment. (2023 updated section)
If the tax rate that will apply to the new assessed value has not been established, then the notice shall set out the time and place of the next meeting of the local governing body at which public testimony will be accepted on any real estate tax rate changes.
Testimony from Charles McAndrew (Oak Hill) at Budget Hearing
| To: | Mr. Jeffrey McKay Chairman, Fairfax Co. Board of Supervisors 12000 Government Center Pkwy Fairfax Co. VA 22035-0071 |
| Mrs. Kathy Smith | Sully District Board Supervisor | 4900 Stonecroft Blvd | Chantilly, VA 20151-3808 |
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. I have been protesting both the budget and real estate taxes before the Board of Supervisors for over 50 years! I am here to protest the outrageous salaries of executives of the Fairfax County Public Schools (FCPS).
I understand that the Chief Experience and Engagement Officer is paid $244,255 and the Chief Equity Officer is paid $248,693. This is more than the U.S. Secretary of Defense who is paid $221,400 and is responsible for a trillion-dollar budget and millions of military and civilian employees. The Superintendent is paid $407,832. That is more than the President of the United States who makes $400,000 annually! These are examples of overpaid executives! Keep in mind that a Senator and Congressman makes $174,000 annually. The Majority and Minority Leaders in Congress as well as the President Pro Tempore make $193,400 annually.
I understand, Mr. Chairman. that you had a real problem with this FCPS budget. I believe that you stated, "the FCPS requested for the school transfer of $165 million is unrealistic", which I certainly agree! This transfer to the school should be substantially reduced, especially that they expect a 6% salary increase which should not have given to the top 25 high paid executives of the FCPS. The advertised budget of $3.8 billion that includes an increase of 8.6% over the previous budget of $301.8 million -- even though the enrollment is estimated to rise 1%. Meanwhile, the latest nationwide inflation rate (cost of living) is 3.5%; and yet the FCPS wants their budget more than double the inflation rate. This is outrageous!
Recently the FCPS Board Members were given raises to $48,000 annually and the Chairman at $50,000. How many hours per year do the School Board Members work?
FCPS spending has increased six times faster than enrollment since the year 2000. So, my request is to cut the transfer of funds to the FCPS by $100 million!
I look forward to your written response and also responses from the Superintendent and School Board Members that I am forwarding this presentation to at this time!
Charles McAndrew
Copies to the Superintendent of FCPS and all Board Members and County Supervisors
Testimony from Charles McAndrew (Oak Hill) at Tax Rate Hearing
| To: | Mr. Jeffrey McKay Chairman, Fairfax Co. Board of Supervisors 12000 Government Center Pkwy Fairfax Co. VA 22035-0071 |
| Mrs. Kathy Smith | Sully District Board Supervisor | 4900 Stonecroft Blvd | Chantilly, VA 20151-3808 |
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. I have been protesting both the budget and real estate taxes before the Board of Supervisors for over 50 years! We moved into the Greenbriar subdivision in early 1968. My first real estate tax bill for the full year was for 1969 -- I paid $454. The home cost $33,000 at that time. Last summer, the same house was selling for $680,000. In other words, it increased about 20 times. My real estate bill l last year was $10,499 for the house I am now living in, which is higher priced than the home I sold. Nevertheless, my real estate bill has gone up 23 times since 1969!
The Fairfax County real estate taxes have increased three times faster than household income and inflation from the year 2000 through 2024. The Fairfax County Chairman is proposing a 7.1% or $618 tax increase for the typical residential household. This is the second largest tax hike in 10 years -- exceeded by last year’s 8.9% increase! The proposed increase is more than double the latest inflation rate of 3.5%.
The proposed or adopted FY 2025 Property Taxes per $100 of assessed value for Arlington County is $1.038, Loudoun County is $0.865, Prince William County is $0.966, and Stafford County is $0.9175. And then there is Fairfax County at $1.135! This is outlandish! It is time to roll the taxes back!
I look forward to your written response! Thank you for your attention!
Charles McAndrew
Copies to all County Board Members and the County Executive.
Testimony from Tom Cranmer (Great Falls) at Budget Hearing
TO: the Fairfax County Board of Supervisors:
Thank you for the opportunity to speak to you about issues relating to the proposed budget and the management of the County.
ISSUE: Because the assessed value of existing property has increased by one percent or more, Virginia Code Section 58.1-3321 requires the Board to hold a public hearing on the real estate tax rate.
RECOMMENDATION: The revenue projections included in the FY 2025 Advertised Budget Plan are based on a Real Estate Tax rate of $1.135 per $100 of assessed value. However, a balance of $3,826,826 remains unallocated and is available for the Board’s consideration. A real estate tax rate of $1.35 per $100 of assessed value was authorized by the Board of Supervisors for advertisement to provide the Board flexibility during their deliberations on the FY 2025 budget. Action on the tax rate is recommended to take place on May 7, 2024, as part of the annual adoption of the tax rate resolution, after the public hearings on the FY 2025 Advertised Budget Plan beginning on April 16, 2024, and the Board markup on April 30, 2024.
TIMING: On March 5, 2024, the Board authorized advertisement of a public hearing to be held on April 16, 2024, at 3:00 p.m.
BACKGROUND: The FY 2025 Advertised Budget Plan is based on a real estate tax rate of $1.135 per $100 of assessed value. The tax rate included in the proposed budget is an increase of 4-cents over the FY 2024 Adopted Budget Plan. Based on the total assessed value of existing property, the effective tax rate has increased by more than one percent. Under such circumstances, Virginia Code Section 58.1-3321 requires that the Board advertise a public hearing and take action to adopt the proposed FY 2025 rate rather than the rate computed by the statutory formula. It should be noted that the total increase in assessed value of existing properties is expected to be 1.91 percent, including an increase of 2.86 percent for residential real property and a decrease of 1.24 percent for non-residential real property. As a result, most property owners would experience an increase in their real estate tax bill.
Board Agenda Item April 16, 2024: The following language, based on Virginia Code and included in the advertisement for this public hearing, describes the effective tax increase due to appreciation and a constant tax rate.
- Assessment Increase: Total assessed value of real property, excluding additional assessments due to new construction or improvements to property, exceeds last year’s total assessed value of real property by 1.91 percent.
- Lowered Rate Necessary to Offset Increased Assessment: The tax rate which would levy the same amount of real estate tax as last year, when multiplied by the new total assessed value of real estate with the exclusions mentioned above, would be $1.0745 per $100 of assessed value. This rate will be known as the "lowered tax rate".
- Effective Rate Increase: Fairfax County, Virginia, proposes to adopt a tax rate of $1.135 per $100 of assessed value. The difference between the lowered tax rate and the proposed rate would be $0.0605 per $100, or 5.63 percent. This difference will be known as the "effective tax rate increase". Individual property taxes may, however, increase at a percentage greater than or less than the above percentage.
- Proposed Total Budget Increase: Based on the proposed real property tax rate and changes in other revenues, the total budget of Fairfax County, Virginia, will exceed last year’s by 6.01 percent.
FISCAL IMPACT: The advertised FY 2025 real estate tax rate of $1.135 per $100 of assessed value results in the revenue projections outlined in the FY 2025 Advertised Budget Plan. If the tax rate is lowered to a rate of $1.0745 per $100 of assessed value as described by Virginia Code Section 58.1-3321, then the revenue projection set forth in the FY 2025 Advertised Budget Plan would decrease by $195.5 million.