Tag Archives: sales tax

Whereas What’s The Best Use Of The Sales Tax Increase?

I’ve had several folks ask me about my suggested and rejected changes to the recent Democratic Party resolution supporting the 1/4 cent sales tax increase (Orange County Dems: Thanks for the Consideration…).

This is a terrible year to raise any tax yet the Orange County Board of Commissioners (BOCC) decided 4/5/2011 (VIDEO [my comments at 48 minutes and 103 minutes]) to hold another referendum, at a cost of $105K to $125K ($85K election +$20-40K “education”), trying to succeed where they failed just 6 months ago.

I and others appeared before the BOCC arguing that 1) scheduling the vote this year amounted to “vote shopping” and didn’t serve their professed commitment to “small-d” democracy:

“I do understand that there’s a need for the revenues sooner rather than later,” said Chapel Hill resident Will Raymond. “The turnout is not representative of what the impact is for this tax. You’re looking at dis[en]franchising the rural voters. In terms of integrity of the process and confidence in the process, it feels a little bit like you’re doc[k ]shopping, you’re vote shopping. The reality is that the referendum did very well down in the municipal areas.”

Not only did the referendum pass overwhelmingly in the cities last time, but turnout in the rural districts will likely be low, Raymond said. And, according to Orange County Board of Elections Director Tracy Reams, off-year general elections typically boast a lower turnout than presidential primaries—something to the tune of 25 percent compared to 40 percent, respectively.

“Doing it in November just doesn’t feel very democratic,” said James Barrett, Chapel Hill resident and member of Orange County Justice United, adding he supports the increase. “I think, as we see changes around the world, it’s important to make sure that everyone’s engaged in voting. We have a much greater opportunity to do that in May than we do in November.”

News of Orange, April 19, 2011

“Putting this on the municipal elections is a bad idea … the reality is [that] this did very well in municipal areas,” said Will Raymond, a Chapel Hill resident. “You’re vote shopping.”

N&O, 4/6/2011

and

2) that the County would be better served by altering the proposed allocation from 50% economic development/50% to education to 33% economic development/66% human services:

Will Raymond said that two-thirds of the tax should go for human services, where the real need is since Orange County is creeping toward an 18 percent poverty rate and the county has cut back on some of the services it provides to citizens who need the most help.

“The only way I’m going to support this is if I see a significant portion going to the human services deficit,” Raymond said.

Burlington Time News, April 19, 2011

By the way, that was doc, as in doctor, shopping and not “dock shopping” as reported.

If the County used 2/3rds of the anticipated revenue, $1.6+ million, for human services the impact on existing programs would be significant. Further, the County would finally have funding to address the emergency housing problem they long offloaded to the Interfaith Council (IFC).

Allocating $1.2+ million to bolster the multi-million dollar school budgets ,though, will not go as far. When you review last year’s proposed educational expenditures the contrast between priorities is stark – repaving running tracks versus bolstering our burdened community health service.

As of tonight (Tues. 4/19/2011), not only will the sales tax appear on the ballot (with a non-binding commitment to the proposed 50/50 split) but the BOCC has floated the idea of adding an additional 1/2 cent sales tax bump to fund regional transit initiatives (including light rail).

That’s an 3/4 cent increase from the current 7.75% to 8.50%.

That could drop to 8.25% if the requested extension of a “temporary” State sales tax hike, currently 1 cent, passes the Republican controlled legislature at Gov. Perdue’s suggest 3/4 cent rate . If that extension fails and both referendums succeed, the new Orange County rate would be lower than today – 7.5% – a possibility the BOCC might leverage to sell the bump to voters.

Last year the BOCC responded positively to a critique of the vagueness of their proposed economic development spending priorities by providing specific projects with fairly well established cost structures. One example – extending sewer and water service into 2 of the economic development zones. I expect them to develop a similar list of very targeted expenditures to fix creaking critical physical infrastructure at the schools.

That said, I don’t plan to support the tax because it further burdens folks during a worsening economic downturn, because scheduling it during an off-year election appears to be “gaming” the electoral process and because the allocation doesn’t address escalating demand for critical core services.

Of course, I remain open to the possibility that my mind could be changed by the BOCC’s new advocacy program.

Below is my revised resolution merged with the original:

Continue reading Whereas What’s The Best Use Of The Sales Tax Increase?

Nov. 2nd, 2010 Election

In case there’s any confusion, Morgan Freeman had nothing to do with this post!

I’ll be helping the Orange County Democratic Party over at the Caldwell precinct in northern Orange County from 9:30am to 4:00pm. Drop by if you’re in the area.

Over the last week I’ve received emails asking my recommendations for the judicial races. Here’s who I’m voting for:

US SenateElaine Marshall

I know, Elaine isn’t running for the bench but since I have your attention….

A lot has been made of the apparent Democratic electorate malaise this year. We are still involved in the longest war of our country’s history. We still haven’t punished the use of torture or kidnapping as tools of war. Affronts to our Constitution, to basic human rights continue to be promulgated. Backroom deals derail chances of improving our populaces health and welfare. Billions are bilked and the public coffers milked. Spying and lying are now commonplace insults to our country’s democratic well-being. So much of the same old, same old with nary a peep from so many Democratic “yes we can change” Congress folks.

I understand that immense lethargic unease the folks that turned out in 2008 must feel. Does that mean we need to suffer with a Burr under our saddles another 4 years? Hell no.

Elaine is more than the anti-Burr choice. She wasn’t supported by the torpor inducing national Democratic apparatchik, a real win in my book. She will work to bring real change on behalf of all North Carolinians if elected. Do your part today to make that happen.

Supreme Court – Bob Hunter

Both candidates have a strong record on governmental transparency, solid experience and track records of reasonable judicial advocacy. While Jackson served as counsel under Labor Secretary Cherrie Berry during a period of time when that office was less than proactive on a slate of labor related issues, it’s not clear to me if her role allowed her to advocate for better outcomes. Hunter has the edge in experience, great endorsements and, as a Democrat, the background to work towards an equitable decision on Congressional redistricting should it land in the Court’s hands.

Court of Appeals – Gray,Elmore,Geer.

Gray and Geer, Democrats, have solid reputations, been unequivocal that politics will play no role in their courts. Elmore is a solid choice.

Court of Appeals – Instant Runoff version: Thigpen – 1st. Hammer – 2nd. Payne or Middleton or Vesper -3rd.

In other races:

Board of Commissioners – Earl McKee.

I’ve been watching Earl as he has taken on a few County issues these last 18 months. He spent 6 months attending BOCC meetings to get a feel of the office before ever standing up and speaking his piece. His first issue, challenging the expensive remodeling of an office space to serve as a Commissioners chamber, demonstrated the type of leadership he plans to bring to the Commission: he did his research, spoke sincerely and directly to the issue, stood firm on his principles while pursuing the best policy for both his rural district (District 2) and the County as a whole.

Sales Tax Referendum – AGAINST

This is a lousy year to raise any taxes – no matter how small the bite – but that is not the main reason I stand so firmly opposed to this referendum.

Poverty is on a steep uptick in Orange County. Demand for health and welfare services is at an all time high. Long needed structural shifts – from fully staffing our community health system to shifting the emergency homeless shelter burden off the IFC – are not occurring supposedly due to fiscal difficulties at the County level. Yet, when presented with $2.3M from a sales tax or $4.6M windfall from refinancing the County’s debt, the BOCC chose areas outside those vital needs.

I lobbied them to put the lions share towards addressing the needs of those struggling the most – for the 1 in 5 Orange County residents in poverty and other residents who are just treading water. $2+ M new revenue targeted effectively represents more than a life jacket – it would lift folks out of the deep end of the pool and move them on to firm ground.

Again, I appreciate the BOCC making a somewhat firm commitment to spending priorities – I just don’t support the same set of priorities.

The BOCC has been clear, as they should be, that this revenue sharing plan is a firm commitment over the next 5 years and will not change – period. The BOCC has also reaffirmed their stance that this new revenue will not replace existing revenue or cover existing expenses – it is new money for a new purpose )funds will not be freed up elsewhere that could be redirected to human services).

Given that, tomorrow, I’m voting NO for the sales tax in hopes that we will get another chance to set the priorities for that spending, that the new priority will be waited heavily towards addressing human service needs and that core needs – like improved emergency medical services(EMS) and required school facility repairs – be paid out of core budget.

More of my reasoning on voting against the sales tax below:
Continue reading Nov. 2nd, 2010 Election