Cabarrus Cheap Seats

19 responses so far ↓

• 1 Maria Ray // Feb 12, 2008 at 7:58 am

  Thanks for making me so poplular!!

  I learned my meme attitude from someone in public office. And finally an even bigger thank you for not blaming everything on Harold Smith and Coy Privette.
  Boy, will wonders never cease.

  RE: Comments over the years on your site sure placed blame directly on ole Coy and Harold.

  I guess you’ve learned I don’t take directions from older men or older women.
  Great lesson learned!

  By the way who are you voting for in the next presidential election, I heard Bob Carruth (lol)

• 2 Maria Ray // Feb 12, 2008 at 8:15 am

  POPULAR!

  Sorry, I realize your spelling deputy will be out there somewhere. And please forgive me its first thing in the morning and I am only on my first cup of caffeine induced beverage.
  Mistakes do happen.

  But, at least I wasn’t posting on a blog at 4 am in the morning.
  I guess that’s why our lovely commissioner Bob Carruth mispelled “tremendously”.
  I guess thats what happens when you reach for a doughnut instead of the caffeine.
  Sugar sure doesn’t help spelling, sugar.

  Oh by the way, what are your thoughts on organic gardening???? I heard this, the better the “hoe” the tastier the “lettuce.
  Is that true Justin darling?

  I have to honestly say I have absolutely missed you. You are such a fun little blogger.
  I used to think of you like a tick. Glad to see you have moved up in the world of blogging.
  Keep up the great work!

  LUV YOU JUSTIN, KISS KISS

  MARIA RAY

• 3 Bob Carruth // Feb 13, 2008 at 8:02 am

  lol

• 4 Justin Thibault // Feb 13, 2008 at 8:35 am

  Why does she talk in code?

• 5 Bob Carruth // Feb 13, 2008 at 11:25 am

  I have no clue. Maybe she’s the one that taught Kellie Pickler Geography….

• 6 MarkMartin // Feb 13, 2008 at 1:01 pm

  I thought comments for this post were limited to the Laffer Curve only. I had delayed a response because I was giving the Laffer Curve a few days to sink in. Anyway, I agree and disagree with the Laffer Curve. I agree that mathematically the numbers are represented in the graph. I disagree with the impact analysis because the theory involves the assumption of how individuals will react.

• 7 Justin Thibault // Feb 13, 2008 at 9:46 pm

  Mark - People can talk about what they want: I just wanted to keep the comments about others’ articles at their sites.

• 8 Bob Carruth // Feb 13, 2008 at 11:16 pm

  Laffer Curve -

  It may work with income tax, but trying to apply the same logic to property taxes is flawed, but has been brought forth as a reason for continually lowering the property tax, as revenue the next year will actually increase enough to cover the revenue shortfall. That’s what got the county into the mess it was in June 2005, when the tax rate had been cut so low, that reserves were being spent each year to cover the shortfall, while having to borrow money to build schools. As it was, there were no reserves left from which to borrow to balance the budget, so the only place the commissioners could go was to raise the tax rate to restore some sort of fiscal stability to the county.

  Mark, I believe you pointed out in 2004 that had the tax rate been left at 60 cents as they were in the mid-nineties, then we would not have had to borrow the money that we did for schools.

  If the Laffer curve were to hold true to property taxes, then every real estate investor would be looking with anticipation for which counties lower their tax rate in June, then rush in and buy up land, so they can get the tax savings. This is flawed reasoning at best, and dangerous at worst. My theory is that the less sensitive the tax is to human behavior, the less it will respond to a short term rate cut.

  Hopefully, now that we have established a formal fund reserve policy, increased the adequacy contribution for schools to more realistic levels, and have seen a larger than projected revaluation this year, a tax rate cut can be a realistic thought for this year. Bear in mind, however, that we must look at what a rate cut will do to the tax rate 3 to 5 years from now. It would be less than honest to cut the rate now, knowing that we may have to raise it again in a couple of years back to where it is now.

• 9 MarkMartin // Feb 14, 2008 at 10:12 am

  Bob - Taxpayers want to see the BOC honestly manage the tax rate and have confidence that the BOC is working toward a ‘win/win’ resolution. Taxpayers also want to see the BOC honestly working to eliminate or reduce excess spending in the budget. Households in Cabarrus County have been and continue to look for ways to reduce spending due to rising costs (gas, food, taxes due to a very large revaluation, etc…). We need to see local government do the same. Spending in the upcoming 2008/2009 budget should be restricted to items that are needed and eliminate items that are wanted. One of my clients recently defined their spending budget for 2008 using the term ‘economic recovery’. In other words, no funding for ‘new’ projects. I think we all believe the BOC is on the right track and has been since the 2004 elections (when the Cabarrus County Taxpayers’ Association lost majority). So campaign platforms this year need to focus on conservative spending.

• 10 Steve Smith // Feb 14, 2008 at 11:13 am

  I guess that we can assume that Mark is now running for County Commission…

• 11 Justin Thibault // Feb 14, 2008 at 11:44 am

  Mark - Here’s the County’s Budget and here’s the latest financial report.

  Let’s say your elected as a Commissioner - what “wanted items” are you going to eliminate?

  Do you have the guts to make the cuts?

• 12 Bob Carruth // Feb 14, 2008 at 6:21 pm

  Mark, I agree!

  What I am actually saying is that any tax rate cut will likely cause a strutural revenue shortfall in the out years, which in turn could lead to a higher tax rate down the road.

  In addition, the people of the county need to know what will be affected if we cut out the “want-tos” - to do less would not be honest with them. That was what finally helped the CTA to lose all of its credibility - remember the 2004-05 budget hearing?

• 13 Bob Carruth // Feb 14, 2008 at 8:29 pm

  Anyone should go especially to the link on the county budget page for “Program Funding Matrix”. This matrix does two things:

  1. First, it splits out every program in last year’s budget into one of three categories: mandated programs, with mandated spending levels,mandated programs, but with no mimimum funding level, and discretionary programs. These are shown per department, as well as by category.

  2. Second, it assigns a property tax equivalent to each program. This makes it easy to see what the effect of cutting part or all of a program will have on the overall expenditure level. For example - want to eliminate incentives? By the matrix, it contributes a little over 1/2 cent to the property tax rate.

  You can see pretty quick the big pieces in the budget are in three areas - social services, which is a mixture of all three types of expenditures, the schools, whose budget is controlled by another elected body in the county, and debt service, of which nearly all is tied up in school construction.

• 14 Aaron // Feb 15, 2008 at 7:50 am

  Bob-

  Good points. It’s nice to see a member of government be so honest and detailed in terms of budgeting matters.
  That being said, I’ll give you a “book blurb” worthy of your responses. (Can you tell I’ve been in Barnes and Noble Recently)

  “A good, plain english description that even an out and out liberal would understand…”

• 15 MarkMartin // Feb 15, 2008 at 10:53 am

  Justin - The best way to reduce spending during a period of ‘economic recovery’ is to adopt a fiscal policy. Not just establishing a minimum fund balance, but a mandate to department managers to reduce their spending budgets. It is difficult for any BOC member to see a line item in the budget and just focus on one specific area. It requires the detail understanding at the department manager level to know exactly where the money goes. Department managers are responsible for knowing the specific details for each line item in their budget (or what I like to call ‘roll ups’). If a department manager can not explain where 100% of the dollars designated for a line item truely go, then they are not doing their job and their spending budget should be reduced. The BOC can then focus on initiatives to save the County money across departments. Like initiatives to conserve and/or reduce energy cost, etc…

  Bob - I understood what you meant in your response related to potential tax rate cuts. I believe most people in the County feel that the current BOC is honestly managing the tax rate and creating a ‘win/win’. However, I do not believe that most people in the County feel that the BOC is prepared to make an attempt at reducing spending in the upcoming budgets. As I mentioned before, we all know that households in the County are having to make the effort to reduce spending, but we haven’t seen any press on ideas from the BOC on reducing spending.

• 16 Bob Carruth // Feb 15, 2008 at 12:12 pm

  Mark,

  In the budget documents, there is a 5 year plan that John put together as part of the budget - it includes a 5 year projection on new expenditures and revenues; in it, he projected a 20% increase from reval this year, to help fund school construction in the future, thereby reducing borrowing, and the interest that goes with it, which this past year was $10.5 million and equals 7 cents on the tax rate.

  Even with this, the tax rate was projected to go up in years 4 and 5. Given this, I would like to see some projections with the following three scenarios:

  1. Revenue neutral,

  2. Tax rate to get the 20% projected growth John had built into the five year plan, and,

  3. Revenue and future tax projections with no rate decrease.

  Something to think about - if we reserve 7 cents worth of tax revenue from the reval, dedicated to future school construction, banking of land for school sites, to defray future borrowing, will it reduce future interest payments, and give us bigger tax savings down the road - I not sure one way or the other.

  I think that is why actuaries make the big bucks.

• 17 Justin Thibault // Feb 16, 2008 at 1:13 am

  Mark - Wow. I’ve heard this “it’s the staff’s job to make the budget work” somewhere else.

  Here’s a hint.

• 18 MarkMartin // Feb 16, 2008 at 9:53 am

  Justin - Let me clarify. It is a TEAM effort. Everyone has their role. Staff members do need to be held accountable, but ultimately it is the BOC that has to answer to the citizens of Cabarrus County.

  Bob - I read the 5 year plan. I guess the reality of fixing the mistakes of previous BOC decisions under the control of the Cabarrus County Taxpayers’ Association is difficult to deal with in the present economy. However, I also realize that the 5 year plan could not have predicted a downturn in the economy.

• 19 Justin Thibault // Feb 16, 2008 at 3:36 pm

  Mark - How are the current commissioners and staff not acting as a team?