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Editor has cart before the horse

Posted on March 19, 2009 by Staff

By Brian Voyce

No single drop of rain thinks it’s to blame for the flood. Local municipal spending comprises a flood of services, each reasonable to fund if viewed in isolation.

In a recent editorial, Editor Ross deftly explains why Orange County is in its current financial mess. It’s not what he says. It’s what he doesn’t say.

To Mr. Ross, the cart should pull the horse. There’s not too much government spending, but too little government revenues. (Let’s be blunt, too little taxation.) You mustn’t complain about government spending unless you figure out what part of hundreds of pages of budget should be cut. (Weren’t you paid to spend weeks advocating the details of every budget page?)

Fortunately, there’s another approach. Put the horse back in front of the cart. How about having the people who ran for office, who get paid for that office, and who approve evermore government spending, how about them justifying that spending? How about the commissioners explaining their ever-outsized appetite for money?

The county workforce has grown from about 673 full-time employee equivalents (FTEs) in FY2001-2002 to about 900 FTEs FY2008-2009. Why? Why is local municipal government the county’s only growth industry? County employee growth is about 226 FTEs in 7 years, or about 34% in total, about 5% per year. Did the population grow at 5% per year?

Mr. Ross, aren’t you curious as to why the population in Orange County grew by less than 1% annually (only 4.6% between county FY2002-2003 to FY2007-2008), and yet the commissioners increased spending during that time by 27%? (Didn’t your income grow by 27% over the past five years?) That’s an additional $266 per person above the estimated $973 per capita that would have been needed to pay for pro rata population growth. (There goes your growth canard!)

If a local e-zine (like Squeezethepulp.com) can present these relevant facts, then why can’t the local media? Why is the burden for controlling spending on those paying the taxes, and not on those with the resources to create and to spend those taxes? To what paid staff should the private citizen turn in order to answer Mr. Ross’ questions, to do the job of the commissioners without pay or free health benefits? 

Let’s turn to Mr. Ross’ solution, increasing the size of the cart. Is increasing taxes through a local county income tax (more money paid to the state at tax time) a fair solution to the problem of solving county overspending?

In CY2007, the median household income for Orange County was about $55,000. That household (assuming two dependents and employer contributions) would pay about $4,200 in FICA, about $2,300 in state income taxes, and $0 (yes, $0) in federal taxes in CY2008. That‘s about $6,500, or about 11.8% of income paid out in income taxes. On the other hand, if the same household made $110,000, it would pay about $8,400 in FICA, about $6,500 in state income taxes, and about $10,500 in federal income taxes. That‘s about $25,400, or about 23% of income in income taxes. More importantly, it’s four times the tax burden of those making the median income.

So Mr. Ross, is it really fair that you could sit on $10,000,000 in property value, and as long as you have a median income you would pay half the county income tax of someone making twice your income, but who sits on one-twentieth your property value ($500,000)? How does more income equate to more responsibility than more net worth?

By the way, the average combined state and local income tax for Maryland is about 7%, just about what the state income tax rate is for North Carolina. So Maryland residents aren’t paying more in non-federal income taxes than Orange County residents. (Another canard gone!)

Mr. Ross also asked about suggestions for real reform.

Here’s one. Sunset all county spending, i.e., require annual justification for each county program. Don’t just have budget presentations for increases in spending on existing programs.

Here’s another suggestion. Provide a priority rank for each service in its importance to county residents. Let citizens see how their commissioners view the relative importance of each service.

Here’s another suggestion. Require alternative expense testing for each county service. Determine if it’s cheaper to outsource the service through private enterprise. Municipal workers earn substantially more in compensation than the average private employee.

Here’s another suggestion. Increase the county developer impact fee to the maximum allowed by state law. Why did commissioners refuse to increase this fee to the maximum this year? Why shouldn’t new residences pay for the increased municipal burden caused by their creation?

Here’s another suggestion. Fire all of the municipal economic-development staffs. If you impose a county income tax, then you can forget attracting private enterprise.

In the end, it’s about controlling your spending. Every private business enterprise must live by that rule. Why should public officials be different? They shouldn’t behave like a child wanting a pretty pony. Not only does the pony cost money, but you have to feed the pony, house the pony, clean up after the pony, and care for the health of the pony.

Owning the pony may give you a higher quality of life, just like owning a Rembrandt original. But do you need the pony? But can you afford the pony?

Brian Voyce is a resident of The Highlands in Carrboro.

1 thought on “Editor has cart before the horse”

  1. Concerned Citizen says:
    March 21, 2009 at 7:42 am

    Excellent letter. But I am confused with what being from “the Highlands”, as he is described, has to do with anything??

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