Paying twice for PAYGO
When you buy something most people assume that they only have to pay for it once.
The big question this budget season is whether the Democrats intend on making you pay twice for the same 'chicken sandwich and cup of slaw' (to borrow Parks Helms' characterization of the proposed tax increase).
In June 2005 the Democrats voted to increase your taxes by eight (8) cents. Part of that increase (about 2.5 cents worth) was to establish a "PAYGO" fund to build schools and government facilities without issuing bonds so that the taxpayers wouldn't have to pay interest over 20 years.
The next year (in 2006) the money put into PAYGO was withdrawn and spent on non-construction budget items. What was sold to voters as a way to avoid 20 years worth of interest was used in an instant to fund pet projects in an election year. This is very much what happens in Washington and Raleigh when money doesn't have any controls or restrictions.
So.....is the ancient history?
Nope.
The Democrats this year are mulling over another tax increase to ask taxpayers to 'refill' the PAYGO fund.
In effect, you will be paying for the same PAYGO twice with TWO tax increases. Once with a tax increase in 2005 and again with a tax increase in 2007.
As it stands now, the County Manager's recommended budget includes increasing (spending) money to 'replenish' PAYGO.
PAYGO would be a good investment IF the money were actually spent on avoiding debt. It is hardly a good deal raise taxes for a slush fund.
Some of you may ask why the Democrats would raid PAYGO in 2006. The simple answer was that they were up for re-election and PAYGO was a easy source of ready money in an election year. In essence, they spent money set aside in 2005 for schools, parks and libraries on increases for special interests and outside agencies. They figured no one would care and considering they got re-elected narrowly, they were correct.
During the 'State of the County speech the current chair, Jennifer Roberts committed to 'try and avoid property tax increases' for the next two years. Her specific quote was:
"Most important, we must work to sustain a stable and fair tax rate. For this term, it is my goal to try to avoid property tax increases." - March 9, 2007
One way to 'avoid property tax increases' is to spend money wisely.
What the Democrats did in 2005 setting up PAYGO was the 'one good thing' they did that year and I said so at the time.
What they did in 2006 was to violate the public trust and rob taxpayers of the ability to save future interest costs. In doing so they were not responsible stewards of the public purse.
What the Democrats are considering THIS YEAR with the County Manager's budget is unconscionable if approved unchanged.
Forcing taxpayers to pay TWICE for the same thing because they mismanaged PAYGO and violated the public trust is to tell the public that pork barrel politics is more important than fiscal integrity.
If you were forced to pay twice for the same 'chicken sandwich and cup of slaw' would you continue to do business with that company again?
