Dec 11, 2008

Double Your Property Taxes? What's The Big Idea, Anyway?

For some current and incoming Multnomah County Commissioners, the consensus "big idea" to solve their upcoming $25 million deficit doesn't seem to include forcing the County to live within their budget. One incoming County Commissioner even said it didn't matter how much they cut, they would never be able to make expenses match revenues.

In today's financial crisis, many East Multnomah County residents have no choice but to live within their means. We're cutting back on expenses. We're renting DVD's instead of going out to the movies. We're eating meals at home instead of going out to restaurants. We've put off major purchases, like buying new cars. Some people have been forced to delay retirement due to a significant reduction in their 401(k) accounts.

Unemployment has skyrocketed except in the government sector. Governor Kulongoski's proposed new budget includes over 1,000 new state government employees. The shelves of the region's food banks are emptying because many families can't even afford to buy food. For most East County residents, the option of a "bailout" isn't an option. The "big idea" for most everyone is to live within our means.

However, the answer to Multnomah County's financial woes does not seem to include living within their existing revenues like the rest of us. Instead, the consensus "big idea" for the new County Commission seems to be the pursuit of an elimination of Oregon's property tax limitation laws. They want to raise your property tax rates. Because of the current property tax limitation laws, most homes are taxed at far less than their market value. If you think you're having a hard time feeding your family now, how would you like your property tax bill to double or triple next year? That's what some County Commissioners have said they'd like to do.


In the Oregonian's December 4, 2008 Multnomah County Weekly insert, here's what some of the current and incoming County Commissioners had to say about how they'd like to solve the County's budget woes:

Ted Wheeler:

"How would you seek to address the county's rotten fiscal situation?

"We shouldn't shy away from looking for alternative sources of revenue where appropriate. (He lists changing the state's property tax limitations, using levies to fund services, and creating other fees such as document recording fees and bridge tolls.)"



Jeff Cogen:

"Describe the top issue facing the county and how you think the board should deal with it.

How we can keep providing the services to vulnerable people while revenues are plummeting. (He recommends carefully examining current spending, advocating that the state maintain human services funding, looking at ways to increase tax revenues.)"


"How would you seek to address the county's rotten fiscal situation?

I think I just answered that."


Deborah Kafoury:

"Describe the top issue facing the county and how you think the board should deal with it.

The No. 1 issue is the instability of our budget. ... The incoming revenues aren't going to match expenses no matter how much you cut every year; there's no end in sight."

"How would you seek to address the county's rotten fiscal situation?

I think in the short term to address the $25 million shortfall next year, I'm going to be looking to use whatever one-time-only money we have available to try not to make too many cuts. We're going to have three brand-new county commissioners. It's going to be difficult for us to have a really good grasp ... and make cuts."



Judy Shiprack:

"Describe the top issue facing the county and how you think the board should deal with it.

It's revenue. ... The immediate problem is going to be living within our means. (She recommends looking at ways to increase tax revenue by removing limitations on property taxes or local option taxes.)"


I realize the Multnomah County Commission provides many essential social and public services. The County Commission is faced with some tough choices. But wouldn't you like to see the County Commission make a better effort to find more cuts before they talk about doubling or tripling your property tax bill?

In an April 2008 letter to County employees, County Chair Wheeler acknowledged the central problem- the County has failed to live within its means. In the letter, Wheeler stated,

"In Oregon we are already experiencing impacts of the downturn in the national economy. In Multnomah County government those impacts compound the problems created when we failed to cut the budget to match the decline in revenue from the expiration of the Itax."

Wheeler knows what needs to be done. He needs to cut the budget to match the decline in County revenues. Will the new County Commission have the political courage to do the right thing and cut their budget to match existing revenues instead of trying to double or triple your property tax bill? It's your money.

If you want your property tax bill to double or triple in size, by all means, help out the County Commission and call your local legislator. Let them know it's ok with you. However, if you don't want your property tax bill to double or triple, contact your local legislator, Chair Wheeler or your County Commissioner and tell them you expect them to live within their means like the rest of us.

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