Guest Opinion: Ray JudahLee County is being fiscally responsibleState legislators balance Florida’s budget on the backs of taxpayers, and we should get real reliefOriginally posted on September 15, 2007
Prior to the Lee County Board of Commissioners' first public hearing on the county budget for fiscal year 2007-08, the Lee County Republican Party Golden Goose watchdog group sent a mailer to a select group of active Republican voters suggesting that the county had a bloated budget with $1.3 billion in cash reserves.In reality, Lee County has $57 million in unrestricted cash reserves, which is 17 percent of the operating budget.Professional finance and accounting organizations recommend unrestricted reserves of 15 percent to 25 percent of expenditures to cover unanticipated events such as emergencies, impacts of economic changes and avoidance of debt. Lee County spent $40 million in response to Hurricane Charley in 2004.
The majority of the $1.3 billion is encumbered for capital projects such as the Sanibel Causeway, expansion of the waste-to-energy facility, construction of new jail facilities and courtrooms as required by federal court order, roads and a new regional library. Those designated funds are invested in an interest-bearing account and are drawn down once the projects are production-ready.The Lee County General Fund represents approximately 28 percent of the total tax bill along with a variety of other taxing districts such as the Lee County School Board, fire districts, Lee County Mosquito Control and the South Florida Water Management District.
The school board represents approximately 45 percent of the total tax bill, but the state of Florida's extremely low ranking (approximately 45th out of 50 states) in per capita spending per student, places tremendous financial pressure on our local school board struggling to keep pace with skyrocketing student enrollment.A real travesty is the $53 million the Lee County taxpayer contributes to the South Florida Water Management District, where the funds are primarily spent to operate the water management system in the sugar cane fields in the Everglades Agricultural Area between Lake Okeechobee and the Everglades.Lee County's return on such a huge expenditure is polluted water that is back-pumped from the sugar cane fields into Lake Okeechobee and discharged into the Caloosahatchee and our coastal bays and estuaries.
Despite accounting for less than one-third of the total tax bill, Lee County instituted deep cuts in eliminating more than $100 million from the budget — $25 million in county departments; $9 million constitutionals (including $6.7 million from the sheriff's office); $9 million major maintenance; and $62 million capital projects.Our local community needs to direct attention to the state Legislature for meaningful tax relief.
The latest tax reform effort by the state legislature is a colossal failure in providing limited relief to commercial businesses and non-homestead residents.The state legislature shows a penchant for balancing the state budget on the backs of local taxpayers. In fact, in health and human services such as Medicaid and mental health, the state imposes approximately $320 million in unfunded mandates on counties statewide.State-mandated programs in human services and court-related programs in Lee County total $36 million and constitute approximately 8 percent of local ad valorem taxes.
Florida is a no-income-tax state and relies heavily on property and sales tax to provide services and infrastructure for the fourth most populous state in our nation.Unfortunately, over the years the state legislature has granted sales tax exemptions to more than 300 businesses and organizations totaling $25 billion annually. In fact the state exempts far more than it collects in sales taxes.
Medicine, food and rent should remain exempt, but the state legislature should make a concerted effort to remove sales tax exemptions as a way to provide property tax relief and sufficient funding for such essential services as health care, human services, education and law enforcement.— Ray Judah is the Lee County commissioner representing District 3.
Saturday, September 15, 2007
Friday, September 14, 2007
PR response to Commissioner Janes.
I appreciate Commissioner Janes’ response to my email. Except for the Babcock purchase, which I will discuss in a moment, and Mr. Janes’ spirited defense of building up big reserve funds at a recent fiscal workshop, I’ve not been given a better opportunity to compare my conservative, fiscal approach to government with his, which I frankly consider to be big tax, and big spend.
I have never considered the budget a “planning tool.” My dictionary defines budget as, “an itemized summary of estimated or intended expenditures for a given period along with proposals for financing them,” and “the total sum of money allocated for a particular purpose or period of time.” I have never thought of it as the starting MINIMUM for expenditures and revenue for the coming year, and I suggest that few government agencies nor families do, either. Should a budget be chiseled in stone to the third decimal point? Absolutely not. Should we expect a government that proclaims they are going to spend 2.262 billion dollars and they underestimate that number by 738 million dollars? I suggest that kind of “error” is not accidental, nor is it unanticipated. It is a deliberate maneuver to mislead Lee County taxpayers. This is not a single year’s example; this unfortunate policy has been the norm for several years with this BoCC. For example, Sheriff Mike Scott is doing a terrific job for the citizens of Lee County, and I have every confidence that he sleeps well knowing that the full 16% increase he requested, and much more, is going to materialize in 2008 for his use.
Babcock Ranch….FOUNDATION BOARD MEMBERS Chairman: Lee County Commissioner Bob Janes, Vice Chairman: Charlotte County Commissioner Adam Cummings. Lee County taxpayers contributed 41.5 million dollars for this honor and only 10% of the ranch is in Lee County. Ninety percent is in Charlotte County and they contributed not a nickel. Perhaps their County Commissioners are not as generous as ours? Indeed, if we read 06-07 budget correctly Lee County intends to spend 116.2 million for Babcock, so we haven’t seen nearly all of that iceberg yet. I’m led to understand that currently, in that account, resides 74 million dollars! What is your definition of slush fund, because that one meets mine.
I understand that the Library fund currently has 128 million dollars, with no immediate plans to construct a new library? This BoCC has bandied the term “reserve fund,” but Lee County has a rather consistent 1.4 billion dollars in the Bank of America drawing something greater than 7 million dollars a month in interest. The balance rises and falls a bit, but it is a pretty steady number.
Florida law says, “129.02 Requisites of budgets…. and an itemized estimate of expenditures that will need to be incurred to carry on all functions and activities of the county government” and goes on to state, “Revenues should be estimated at 95% of what may be reasonably expected”. Lee County regularly, and apparently proudly, currently doesn’t underestimate anticipated revenues by 5%, they miss it by 30-35%, clearly in direct violation of existing Florida law.
Commissioner Janes, to his credit, has not turned our fiscal conflict into an opportunity to slander political party committees and related private citizens. But to his discredit, I believe he has participated in, and often led, the runaway, spendthrift BoCC that has characterized Lee County for a couple of administrations. I remain especially despondent by their refusal to see the “handwriting on the wall,” as it is in a very large and bold font.
I have never considered the budget a “planning tool.” My dictionary defines budget as, “an itemized summary of estimated or intended expenditures for a given period along with proposals for financing them,” and “the total sum of money allocated for a particular purpose or period of time.” I have never thought of it as the starting MINIMUM for expenditures and revenue for the coming year, and I suggest that few government agencies nor families do, either. Should a budget be chiseled in stone to the third decimal point? Absolutely not. Should we expect a government that proclaims they are going to spend 2.262 billion dollars and they underestimate that number by 738 million dollars? I suggest that kind of “error” is not accidental, nor is it unanticipated. It is a deliberate maneuver to mislead Lee County taxpayers. This is not a single year’s example; this unfortunate policy has been the norm for several years with this BoCC. For example, Sheriff Mike Scott is doing a terrific job for the citizens of Lee County, and I have every confidence that he sleeps well knowing that the full 16% increase he requested, and much more, is going to materialize in 2008 for his use.
Babcock Ranch….FOUNDATION BOARD MEMBERS Chairman: Lee County Commissioner Bob Janes, Vice Chairman: Charlotte County Commissioner Adam Cummings. Lee County taxpayers contributed 41.5 million dollars for this honor and only 10% of the ranch is in Lee County. Ninety percent is in Charlotte County and they contributed not a nickel. Perhaps their County Commissioners are not as generous as ours? Indeed, if we read 06-07 budget correctly Lee County intends to spend 116.2 million for Babcock, so we haven’t seen nearly all of that iceberg yet. I’m led to understand that currently, in that account, resides 74 million dollars! What is your definition of slush fund, because that one meets mine.
I understand that the Library fund currently has 128 million dollars, with no immediate plans to construct a new library? This BoCC has bandied the term “reserve fund,” but Lee County has a rather consistent 1.4 billion dollars in the Bank of America drawing something greater than 7 million dollars a month in interest. The balance rises and falls a bit, but it is a pretty steady number.
Florida law says, “129.02 Requisites of budgets…. and an itemized estimate of expenditures that will need to be incurred to carry on all functions and activities of the county government” and goes on to state, “Revenues should be estimated at 95% of what may be reasonably expected”. Lee County regularly, and apparently proudly, currently doesn’t underestimate anticipated revenues by 5%, they miss it by 30-35%, clearly in direct violation of existing Florida law.
Commissioner Janes, to his credit, has not turned our fiscal conflict into an opportunity to slander political party committees and related private citizens. But to his discredit, I believe he has participated in, and often led, the runaway, spendthrift BoCC that has characterized Lee County for a couple of administrations. I remain especially despondent by their refusal to see the “handwriting on the wall,” as it is in a very large and bold font.
Commissioner Bob Janes responds to my emails (below)
I appreciate Paul's and your comments regarding the 2008 Budget process. The budget is a planning tool that estimates revenues and expenditures for the upcoming year. As the year unfolds, actual amounts are
determined, and amendments to the budget are made when revenues or expenditures are different than originally planned. So, it is appropriate that the budget changes during the year. This is no different from our own personal household budgets. In addition, the budget is based on the projects and programs approved at the beginning of the year. So, if circumstances or needs change during the year, the budget is amended accordingly. For example, when
Hurricane Charley happened (an unplanned expense), an increase to the budget was approved by the Board so that public safety, clean-up and repairs could be handled. Remember the budget includes all departments,
Sheriff and other constitutional offices (Tax Collector, Property Appraisal, Supervisor of Elections, Clerk of Courts), and courts. The Sheriff's budget alone is more than half the total overall budget and he had originally proposed a 16% increase, but County Budget staff worked with him over the past few months to bring his increase request down to 11% for FY 07-08 over last year's budget request. The increase requested is due to increased criminal activities in Lehigh Acres, etc.
Similarly, when the County had an option to purchase property at the Babcock Ranch along with the State of Florida (which was not anticipated at the beginning of the year), a budget amendment was necessary to acquire the land located within Lee County.
Refusal to consider budget changes would not be wise fiscal management. However, the BoCC is cognizant of its responsibility to oversee fiscal decisions and practices of staff. Let me assure you that I will continue to carefully watch how the County's resources are used and make sure that the taxpayer dollars are spent wisely.
Thank you for your interest in your local county. If you have any additional questions, please feel free to contact me.
Commissioner Bob Janes, Chair
Lee County Board of County Commissioners
Post Office Box 398
Fort Myers, FL 33902-0398
239.533.2224 (Office Number) (NOTE NEW NUMBERS)
239.485.2155 (Fax Number)
Dist1@leegov.com
determined, and amendments to the budget are made when revenues or expenditures are different than originally planned. So, it is appropriate that the budget changes during the year. This is no different from our own personal household budgets. In addition, the budget is based on the projects and programs approved at the beginning of the year. So, if circumstances or needs change during the year, the budget is amended accordingly. For example, when
Hurricane Charley happened (an unplanned expense), an increase to the budget was approved by the Board so that public safety, clean-up and repairs could be handled. Remember the budget includes all departments,
Sheriff and other constitutional offices (Tax Collector, Property Appraisal, Supervisor of Elections, Clerk of Courts), and courts. The Sheriff's budget alone is more than half the total overall budget and he had originally proposed a 16% increase, but County Budget staff worked with him over the past few months to bring his increase request down to 11% for FY 07-08 over last year's budget request. The increase requested is due to increased criminal activities in Lehigh Acres, etc.
Similarly, when the County had an option to purchase property at the Babcock Ranch along with the State of Florida (which was not anticipated at the beginning of the year), a budget amendment was necessary to acquire the land located within Lee County.
Refusal to consider budget changes would not be wise fiscal management. However, the BoCC is cognizant of its responsibility to oversee fiscal decisions and practices of staff. Let me assure you that I will continue to carefully watch how the County's resources are used and make sure that the taxpayer dollars are spent wisely.
Thank you for your interest in your local county. If you have any additional questions, please feel free to contact me.
Commissioner Bob Janes, Chair
Lee County Board of County Commissioners
Post Office Box 398
Fort Myers, FL 33902-0398
239.533.2224 (Office Number) (NOTE NEW NUMBERS)
239.485.2155 (Fax Number)
Dist1@leegov.com
Wednesday, September 12, 2007
Is this any way to run a government?
Our Lee County budget for 2008 nears completion. Don Stilwell and Dinah Lewis have collected and compiled the anticipated needs for all of the various departments and agencies representing Lee County government. All of the departmental managers have considered upsides, downsides, and protecting their backsides. These experts, and that’s exactly what I believe they are, have submitted totals reflecting their professional opinions of what it will take to run their departments until October 1st, 2008. Unfortunately, in recent years this total has turned out to be 25 to 30% LESS than what actually gets spent, with the bizarre justification that it's OK because they grossly, and deliberately, underestimated revenues coming in also.
I suggest we take them at their word. I suggest we take that total, perhaps add fifty million, pocket change for these folks understanding that Hurricane Charlie only cost Lee County 35 million, and secure a commitment from our county commissioners that they will personally vote against spending one penny more than that, AND, return any additional revenue that comes in, over that number, to Lee County taxpayers.
Will you join me in seeking their individual commitments? Their email addresses are below.
Bob Janes dist1@leegov.com
Brian Bigelow dist2@leegov.com
Ray Judah dist3@leegov.com
Tammy Hall dist4@leegov.com
Frank Mann dist5@leegov.com
I suggest we take them at their word. I suggest we take that total, perhaps add fifty million, pocket change for these folks understanding that Hurricane Charlie only cost Lee County 35 million, and secure a commitment from our county commissioners that they will personally vote against spending one penny more than that, AND, return any additional revenue that comes in, over that number, to Lee County taxpayers.
Will you join me in seeking their individual commitments? Their email addresses are below.
Bob Janes dist1@leegov.com
Brian Bigelow dist2@leegov.com
Ray Judah dist3@leegov.com
Tammy Hall dist4@leegov.com
Frank Mann dist5@leegov.com
Tuesday, September 11, 2007
Florida Save our Homes
Isn’t the bottom-line purpose of Save-Our-Homes legislation to protect Florida residents from excessive government spending? Wouldn’t a better solution be to control government spending?
Let’s use Lee County as an example, and believe me, it’s a dandy example. The county plans to reduce overall tax rates by 7.6%. Sounds pretty cool, right? There are two terms we need to understand, assessments and rates. Assessment is the calculated current “value” of a property, and rate is the percentage (millage) multiplied against the assessment to determine the ad valorem taxes due.
With booming property values of late, politicians desiring election, and re-election, have focused on reducing rates and therefore giving the impression of reducing, or controlling, taxes and spending. If you were a non-resident owner, or a business owner, you had no trouble seeing through that smoke. Because of SOH, monster increases have been passed on to them, and it probably was OK with us because few of them are voters, and we only got a tiny part of the increases.
Now comes the real estate recession. Assessments will be, grudgingly, going down, and consequently, rates will be going UP. But not to worry, fellow homesteaded residents, we will still be protected by Save-Our-Homes, and non-resident owners and businesses will absorb all the additional burdens. If you believe that, you are surely one of the locals who believe that cranking up the former drawbridge separated and protected us from all the evils of the mainland. It was nonsense, it IS nonsense. We live on an island, but we are very much affected by events and policy going on around us.
Save-Our-Homes is an island. It appears to offer protection and security, but only briefly in my opinion, and that moment is passed. We are tremendously affected by the tax plight of our non-residents, and business owners, and we must step forward to give them relief. Perhaps selfishly, I do not want to give up our SOH, but there is another avenue to pursue, local government fiscal responsibility.
Back to Lee County’s plan to reduce RATES by 7.6%. I believe they are rather cowardly squeezing the most they can out of the assessment boom. Well, folks, that horse just died. To postpone the burial only exacerbates the problem, and will make it far worse if and when our County Commissioners, or their replacements, are forced to face the issue. The only answer is a genuine halt to the runaway spending that has been the policy for Lee County for far too long.
Even now, as they hide behind twisted definitions of “reserve fund” and have self-congratulatory workshops on rate reductions, the truth lingers in the wings. The answer is not rate increases, it is not faux tax reduction, it is genuine spending reform.
Three of our current five county commissioners are apparently willing to tie their political future to the status quo, and to the notion that Lee County government is an efficient spending mechanism. I have been personally puzzled by their resort to personal attacks against political parties, committees, and individuals who seek change and reform, fairness and moderation in spending and revenue collection. I believe it a poor strategy on their part.
Let me leave you with one additional example, should you be calmed by the current rhetoric from BoCC about spending reduction plans. For fiscal 2006-07, the final budget was submitted last year at 2.262 billion dollars. By the end of fiscal 2007 (end of this month), actual expenditures will be THREE BILLION dollars. Approximately 738 million dollars off. Do you think you could operate your household with that kind of variance? Last year was not unique, that’s traditional policy. Let’s demand when the 2008 budget is released that this commission spend not a penny over it. Wait until you hear the squealing from that demand.
Let’s use Lee County as an example, and believe me, it’s a dandy example. The county plans to reduce overall tax rates by 7.6%. Sounds pretty cool, right? There are two terms we need to understand, assessments and rates. Assessment is the calculated current “value” of a property, and rate is the percentage (millage) multiplied against the assessment to determine the ad valorem taxes due.
With booming property values of late, politicians desiring election, and re-election, have focused on reducing rates and therefore giving the impression of reducing, or controlling, taxes and spending. If you were a non-resident owner, or a business owner, you had no trouble seeing through that smoke. Because of SOH, monster increases have been passed on to them, and it probably was OK with us because few of them are voters, and we only got a tiny part of the increases.
Now comes the real estate recession. Assessments will be, grudgingly, going down, and consequently, rates will be going UP. But not to worry, fellow homesteaded residents, we will still be protected by Save-Our-Homes, and non-resident owners and businesses will absorb all the additional burdens. If you believe that, you are surely one of the locals who believe that cranking up the former drawbridge separated and protected us from all the evils of the mainland. It was nonsense, it IS nonsense. We live on an island, but we are very much affected by events and policy going on around us.
Save-Our-Homes is an island. It appears to offer protection and security, but only briefly in my opinion, and that moment is passed. We are tremendously affected by the tax plight of our non-residents, and business owners, and we must step forward to give them relief. Perhaps selfishly, I do not want to give up our SOH, but there is another avenue to pursue, local government fiscal responsibility.
Back to Lee County’s plan to reduce RATES by 7.6%. I believe they are rather cowardly squeezing the most they can out of the assessment boom. Well, folks, that horse just died. To postpone the burial only exacerbates the problem, and will make it far worse if and when our County Commissioners, or their replacements, are forced to face the issue. The only answer is a genuine halt to the runaway spending that has been the policy for Lee County for far too long.
Even now, as they hide behind twisted definitions of “reserve fund” and have self-congratulatory workshops on rate reductions, the truth lingers in the wings. The answer is not rate increases, it is not faux tax reduction, it is genuine spending reform.
Three of our current five county commissioners are apparently willing to tie their political future to the status quo, and to the notion that Lee County government is an efficient spending mechanism. I have been personally puzzled by their resort to personal attacks against political parties, committees, and individuals who seek change and reform, fairness and moderation in spending and revenue collection. I believe it a poor strategy on their part.
Let me leave you with one additional example, should you be calmed by the current rhetoric from BoCC about spending reduction plans. For fiscal 2006-07, the final budget was submitted last year at 2.262 billion dollars. By the end of fiscal 2007 (end of this month), actual expenditures will be THREE BILLION dollars. Approximately 738 million dollars off. Do you think you could operate your household with that kind of variance? Last year was not unique, that’s traditional policy. Let’s demand when the 2008 budget is released that this commission spend not a penny over it. Wait until you hear the squealing from that demand.
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