State Gives, State Takes Away
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State Gives, State Takes Away

Legislative liaison explains effect of state's tax changes on county.

Loudoun County is slated to receive an extra $3.7 million in state education aid under the formulas being considered by the state budget conferees.

"It is not final, but it looks like a substantial increase from Richmond that will make up the difference and shortfall we received on a per pupil basis from last year to this year," said School Board Chairman John Andrews. "This would make up half the difference."

Scott York, chairman of the Board of Supervisors, was not as positive. "The reality of the game here is we're going to pay as consumers, just with the sales tax increase, we will dole out about $17 million and get about $3 million back for our schools," he said. "That's just absurd."

York criticized lawmakers. "They have a tendency in Richmond to look at us as a rich cash cow, and yet we're sinking in debt from building school after school after school."

Andrews said the key issue is that Loudoun and Fairfax Counties have to subsidize the poor districts in the state. "You have rural areas that don't have any tax base," he said. "As we generate more and more money, more and more is going to other areas of the state."

York agreed. "I don't mind being a donor county, but we're at the point they are squeezing all of the blood out of this turnip," he said. "Enough is enough."

Memory Porter, legislative liaison, told the Board of Supervisors Tuesday that the conferees could choose one of three formulas to fund state education.

LOUDOUN WOULD RECEIVE the most aid, $16.015 million over two years, if lawmakers based the aid on point of sale for collection of the sales tax. "But we're not going to get it," she said. That's because the majority of other counties would not benefit from that formula.

The second best alternative would be to base aid on the number of students in Loudoun schools compared to the rest of the state. Loudoun would receive $12.003 million. The third alternative, with $7.703 million in aid, would be based on the local composite index or the county's wealth compared to the rest of the state. Wealth is based on land value, adjusted gross income and retail sales.

The conferees are considering a combination of the latter two. Porter told supervisors the county could receive another $3.3 million in one year. After the meeting, she used new state figures to recalculate the amount, bringing the estimated increase to $3.7 million.

York said legislators need to realize the composite index is not a fair process.

Porter outlined how the House and Senate's tax decisions contain a mix of wins and losses for Loudoun. For instance, the county will not receive additional transportation funds. York described transportation as one of the county's biggest issues that needed more money.

The annual cap on reimbursements to the county for the car tax cut will cost taxpayers more money beginning in Fiscal Year 2007. With the cap, county officials will either have to raise the car tax, the real property tax or cut services to make up the difference. The latter move would be unlikely, Porter said. "We're growing so rapidly, we don't have that luxury," she said.

SENIOR CITIZENS between 62 and 64 who earn more than $50,000 (individuals) and $75,000 (married couples) will pay additional taxes. Porter said it's challenging to determine how many seniors will be affected. Statistics show there were 2, 359 Loudoun senior citizens in 2001, but income data were not available.

Smokers who buy cigarettes in areas of the county other than Leesburg will pay 20 cents more per pack beginning July 1. Leesburg has its own cigarette tax rate.