Updated: Latest County Budget Proposal Offers Tax Break, More Money for Schools

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In an unofficial vote at the April 16 Board of County Supervisors meeting, supervisors agreed to amend their revenue sharing agreement with the school division in order to offer a lower tax rate for residents.

The two supervisors opposing the proposal were Chairman (At-large) Corey Stewart (R) and Brentsville District Supervisor Wally Covington (R.)

In spirit, the supervisors approved a $1.181 tax rate, a 2.3 percent increase in the average tax bill from 2013 to 2014, and 2.5 percent in 2015 and beyond, according to the five-year plan. It would include a revenue agreement split, in which the schools receive 57.23 percent of revenues, up from 56.75 percent.

This budget plan is an adjusted version of a proposal made by Supervisor Martin Nohe (R-Coles) as a “working” budget designed as a starting point for working towards a budget and tax rate that the majority of supervisors could agree upon.

“Not everyone is going to agree with these cuts; I don’t agree with all these cuts. This is just a proposal,” Nohe said.

Nohe, who said he enjoys working on the tax bill, found ways in which to cut the budget to arrive either at a flat tax bill from 2013, or one in which the tax bill increased by 2 percent. He presented both those scenarios to the BOCS.

Nohe’s plans were designed so that the school budget could be “whole,” or fully funded with the advertised tax bill of 3.6 percent above the 2013 tax bill. He said he would usually not suggest a change to the revenue sharing agreement; however, he thought it was appropriate since it was already proposed this year by Supervisors Pete Candland (R-Gainesville) at 62 percent and Maureen Caddigan (R-Potomac) at 60 percent.

However, Nohe also provided supervisors with the option of not fully funding the schools, in which case Prince William County Schools would have to cut between $3 and $6 million from their FY 2014 budget. As the school division already had their budget reduced by $5 million in state funding, most supervisors did not want to cut their budget any further.

Unlike other proposals, Nohe’s plans sought to fund schools to the level they required to accommodate their current budget. He did not suggest providing any additional funding to ease class sizes or increase teacher salaries.

Furthermore, the revenue sharing agreement has not been modified in 18 years. Yet, supervisors were more willing to consider changing the plan this year, when faced with a shrinking school budget, class sizes at the state maximum and CIP funds ready to threaten the county's AAA bond rating.

However, in order to fund the decrease in revenue from the advertised tax rate, Nohe had to cut from the current FY14 budget. Nohe’s two plans included cutting popular capital improvement projects including the two new libraries to be built in Gainesville and Montclair. The plan also recommended cutting funding for the difference in cost of competing salaries to 68 health department employees.

While most supervisors agreed with most of Nohe’s proposed reductions, they did not want to see the libraries cut from the capital improvement plan.

Chairman Stewart asked county staff to look into a 2 and 2.5 percent increase for FY14, including all the cuts Nohe requested, but no revenue sharing adjustment. That would cost schools $4.7 million or $3.1 million respectively, but keep the tax bill at $1.178 or $1.184.

“One thing I will never agree to is the change in the revenue split. It seems like a great deal right now, but it wouldn’t have been six or seven years ago,” Stewart said, explaining that at another time the school could also have its budget cut by a change to the agreement.

Covington proposed a 2.1 percent tax bill increase with 2.5 percent in the later years, funding the library and fully funding the schools with a 57.29 split. It would garner a $1.179 tax bill.

Michael May’s (R-Occoquan) proposal looked into funding just one of the new libraries, as well as reinstating funding for the health department, police tactical response teams and an adult detention center substance abuse program, as well as changing the revenue sharing agreement to fully fund the schools. His proposal resulted in a $1.178 tax rate with a 57.32 split with the schools.

Ultimately, the adjusted budget requested by Frank Principi (D-Woodbridge) was the one supervisors voted on, following a recess in which county staff figured the costs corresponding with different versions of Nohe's plan.

Among the proposed cuts that supervisors agreed to include were to eliminate membership in the NOVA Health System and High Growth Coalition, the annual mailer, a $67K position, an additional library part time position, five additional positions within the five year plan of the tactical response unit of the police force, 13 newly proposed fire and rescue units, TRIP funds towards sidewalks, the DORM substance abuse program, the Columbus Day holiday for county employees and the Minnieville Road project

Supervisors said they might still be able to restore the funds towards the tactical response team with additional funding over the years. The supervisors also discussed transferring funds from FY14 to FY15.

However, what supervisors liked about Nohe’s plan was that there was a “smooth transition" from one year to the next.

Nohe sold the idea that this time the supervisors would be able to stick to the five-year plan. This would help county staff, schools and agencies have an easier time planning their budgets and knowing what they could expect in coming years.

Wally Covington told Bristow Beat his reasons for voting against the 2.3 percent tax increase.

"In my mind, Principi’s plan was in excess of inflation and supported duplicative work in the health department. At some point, we need to take a look at that. I am pleased that the schools have been made whole and that the School Board has consensus to try a zero- based budget for FY2015," Covington said.

The supervisors will vote on the final budget for FY2014 at their April 23 meeting.

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