Excess funds

Jefferson County lawmakers for years have been overtaxing county residents to build up a nearly $30 million fund balance. Lawmakers have been raising the sales and property taxes by millions of dollars while stashing away more and more money in unspent funds.

In the past few years, the county fund balance has grown by $11.6 million. At the same time, the tax burden on property owners has increased steadily. The levy has gone up more than $8 million since 2005 with the cumulative impact of yearly increases much greater.

In their defense, county officials such as Board of Legislators Chairman Kenneth D. Blankenbush argue that they have reduced the county tax rate. That is misleading. A more realistic measure of the burden on property owners is the tax levy or the amount the taxpayer actually pays.

But that's not all. During this time, the county has been taking more money out of the pockets of consumers by raising its sales tax, which hits poorest residents the hardest, from 3 percent to 3.75 percent. A three-quarters of a percentage point increase was originally intended to offset rising Medicaid costs. However, the county has maintained the higher rate even after state reforms that initially saved the county money. And last year, the county received another $3 million infusion in special federal Medicaid aid as well. All of which has contributed to the excessive fund balance rather than provide tax relief.

The accumulation of fund balance has gone publicly unnoticed due to a budget process that draws attention to the unreserved and undesignated fund balance. It is incomplete and tells only part of the story. It omits several reserve accounts and management-designated funds totaling $23.5 million last year.

Legislator Scott A. Gray, chairman of the Finance and Rules Committee, noted that is "money that gets parked and moved around whenever necessary." It is a matter of raising taxes in advance to spend years later.

Municipalities are expected to maintain a reasonable fund balance as a cushion for emergencies and unanticipated expenses. However, Jefferson County's fund balance, equal to about 20 percent of last year's expenses, is out of line.

Instead of building up their slush fund, legislators should return the surplus to taxpayers by reducing their sales and property taxes.