While legislators at the Statehouse debate the state budget,
local government officials are feeling some frustration at the way the state is
conducting business.
Often when state lawmakers take an action, it has an effect
on the local level, whether it be county or city government or a school board.
The current move in the Senate to eliminate car taxes has
some locals upset, but that move may never make it out of the House of
Representatives.
Lexington Mayor Dan Breazeale, who is also on the board of
directors for the state municipal association, has spent time this year
negotiating with state legislators in that position.
At a town council meeting last week, he criticized those at
the Statehouse for “not understanding the things they pass.’’
His comments came up when it was pointed out that there is a
bill that would prohibit towns from requiring water and sewer customers who are
contigious to town limits to be annexed.
“This is just another example. It is ludicrous. How do we
govern ourselves when we have no avenue to govern ourselves?” he said.
Breazeale and other local officials have called for the
state to re-examine its tax structure.
In the car tax issue, all agree that car taxes are too high,
but a reduction would force local governments to raise property taxes, local
officials say.
They also do not like the state proposal that would allow
local governments the option of eliminating car taxes, which they feel puts the
burden on them and allows state officials to claim they have made a tax cut.
Cayce Mayor Avery Wilkerson has also felt some frustration.
He said he believes part of the problem is that state officials generally have
little experience in running local government.
“There are some fine people over there at the Statehouse.
But in the last eight years, I don’t think anyone has been elected to state
government who has any experience at the local level,’’ he said.
Wilkerson said there is a difference of opinion and
philosophy between local governments and state officials. He hopes the two can
get together and work out those differences.
“No one will win a battle there, and the taxpayer would be
the loser,’’ he said.
He said the state has a surplus this year of nearly a half a
billion dollars, but the state seems reluctant to send any of that money back
to the local level.
Most county and city governments are able to make ends meet
because of growth, but some school boards struggle with what they feel are
unfunded mandates.
Lexington County District Two board chairman Kenny Bingham
said last week that unfunded mandates create tax increases on the local level.
“When the state tells us we have to something and they don’t
fund it, we have to pay for it. It is frustrating, because they run on having
no tax increases but we have to raise taxes to pay for their mandates,’’ he
said.
He said often in education, the state passes mandates and
pays for part of the program, leaving the district to pay the rest.
He cited examples such as all-day kindergarten, and the new
accountability standards that require schools to offer free summer schools for
students who have the need.
The state does pay for some of those programs, but the
school have to pay for a place to have the programs.
Bingham said he believes if the state is going to not
totally fund mandates, it should make them optional for local school districts.
“There are no free programs. They could allocate more money
for these programs,’’ he said.
Bingham said he feels the districts’ hands are tied by the
state in this situation.
“We try to keep our millage rate down, but I want people to
know what is coming. The local governments need to have more control,’’ Bingham
said.
The state is considering a bond bill that would put money
into schools for building, and that has pleased local school officials.
For their part, state legislators say they are not passing
unfunded mandates, and perhaps control is the central issue.
Those in charge of municipal governments and school boards
have responsibility and they want to have control over their own destiny.
At present local governments are funded by property taxes
and fees collected. Schools are funded by property taxes and they also get a
lot of money from the state.
The state controls how those funds are raised, and when the
revenue stream gets interrupted, that is when local officials get upset.
Some, such as Breazeale and county treasurer Bill Rowell, have called for a study of the tax structure to see how it would work best.