City Administrator Fred Russell says the city could be sending property owners another 2008 property tax bill if state lawmakers don't restore $428 million in state grants for property-tax relief frozen by Georgia Gov. Sonny Perdue.
City officials would either re-bill property owners $3.1 million they expected from the state or take the money from emergency reserves, Mr. Russell told Augusta commissioners and Richmond County legislators Thursday during a meeting initiated by the Georgia Municipal Association.
Mr. Perdue froze the tax-relief grants to help mitigate what is now estimated to be a $1.4 billion to $2.2 billion deficit in the state's budget.
For the city of Augusta and the Richmond County school system, the loss of tax revenue traditionally rolled back would total more than $6 million.
A homeowner with a house valued at $32,500 or greater would pay $84.45 more in city taxes in the suburban area and $135.98 in the urban area. That homeowner also would pay $154.74 more in school taxes this year, according to city tax officials.
The municipal association's Deputy Director of Government Relations Tom Gehl said it is still an unanswered question whether local governments would be forced to re-bill taxpayers if the grant money is not restored.
"But there is some debate within our legal office, about the possibility of the fact that this is a tax deferred obligation," he said. "The credit from the state is a credit that goes to local governments to help defray that tax obligation. If the state doesn't give that credit to the local government, then it's potentially a gratuity for the local government not to bill the taxpayer.
"Our legal staff thinks based on the gratuity clause of the Constitution that we would be forced to re-bill."
Mr. Russell also told lawmakers he is tired of the state forcing the city to pay for programs the state no longer wants to fund.
"What we don't need are other people giving us mandates," he said. "We can't afford to run the Forestry Service, and we can't pay the library staff more because the state has cut the salaries."
Mr. Russell said the state is shutting down crime labs, which means more people sitting in jail at a cost to taxpayers of $50 a day.
Sen. Ed Tarver, D-Augusta, asked Mr. Russell to join him in asking the governor to call a special session of the Legislature to deal with the tax-relief grant money.
Commissioner Don Grantham said he expects to see more mandates from the state in the future and that local governments must get the money from sales taxes instead of property taxes.
Mr. Grantham said Augusta needs a 1-cent sales tax program for public safety and transportation, such as the one he proposed the past session, but could not get enough votes from commissioners to send it on to the delegation.
"We can solve our public safety and transportation with that penny," he said. "But we can't get it to the state."
The group agreed to meet again along with school officials to present their priorities to the lawmakers before next year's session.
Afterward, Rep. Barbara Sims, R-Augusta, said she believes the grant money will be restored this year only.
"Next year, I don't think we'll even look forward to even thinking about that," she said. "That's just my opinion."
Mr. Tarver said he thinks the issue is whether the governor set the revenue estimate too high.
"I believe he did," he said. "The appropriate thing to do would be to reset the revenue estimate and call us back into legislative session. And so I would urge everyone to join me and ask the governor to call for a special session."
Reach Sylvia Cooper at (706) 823-3228 or sylvia.cooper@augustachronicle.com.
Comments
I have been a homeowner in Richmond County for the past 33 years and I am coming of retirement age. How much longer can we put up with the inadequacies that Fred Russel is bringing to Richmond county! If we are going to set a tax base,fine, but lets stick to it so we can budjet for it just as any business would. Quit the knee jerking because you cannot manage your office.
Commissioners nor City Administraator know anything about tightening their belts....it is ALWAYS passed onto the taxpayer. Don't we wish we could pass onto someone else all our bills that have increased.
My feelings also, everytime I see crying for money
fred Russell it makes me sick.Budget yourselves Fred, the taxpayers ought to revolt and do something about these increses. Augusta wastes too much money on studies and other unnecessary projects.
WE DON"T NEED ANOTHER STADIUM .WE Don't need studies to make Ellis street a canal. People are moving to Columbia county because Augusta can't manage taxpayers money. Face it Augusta is going down the drain with these stooges managing our money.
If Augusta can't come up with enough money where do they expect retired people living on SS to get more money??
This has got to stop!
government at every level is failing fast. get ready.....
Anyone for a Tea Party? And don't bank on Columbia County commissioners to curb taxes, or quit pandering to the elite real estate developers they so love.
Even the Federal Government can't tax people due to the economic situations. If RC is going to do this, then we need to file a suit against this type of action.
http://www.youtube.com/watch?v=3ueEfRXZCVA ....Americas freedom being taken away!
Let's all pack up & move to Burke County! It's WONDERFUL there - everyone (blacks & whites) gets along & respect each other. The taxes are nothing in comparison to Richmond & Columbia counties. You can still drive to Augusta to shop, dine or go to the doctor/hospital but live in the "small town" era of times past, & be able to raise your children in peace without all the crap that goes on in RC & CC.
By all means move to Burke County. You will probably spend more on the gas to get here to shop than you will on the tax bill.
Why is Augusta-Richmond County not required to have a balanced budget?
The budget submitted last November was balanced based on a tax increase. The Commissioners elected not to go with the tax increased they had planned on, the governor axed money that was included on the revenue side of the budget and fuel costs were much higher than projected. For several years Departments have been required to suggest cuts. Most have complied. The Commission has not wanted to face the rath of the public when they learn their favorite program has been impacted. Costs have increased for everyone. It's really simple, if you want the program or service, you have to pay the cost. If you don't want to pay, you need to be ready to do without the program.
No Longer Amazed: The answer to your question is simple really, no one in Augusta - Richmond County government feels accountable. Citizens need only to look around and it will be clear that waste is the order of the day for this community. And to top it off, no official and no citizen is willing to tighten their own belt. What you will hear or read is the same old scare tactic we have been confronted with so many times in the past. "If my department is forced to cut this, that or the other... The citizens will pay". Not certain if that's a scare tactic or a threat that our officials use against us. But whatever it is, they don't want their positions threatened. The community is crashing and burning and we only have ourselves to blame. Too many folks in this community have the classic what is government going to do for me, attitude. It is that very narcissistic type of attitude which has brought down entire empires before. Looks like history is repeating itself. . . again!
As a life long resident of Augusta and property owner, I am tired of the RC Commission, BOE and Fred Russell always looking for the property owners to bail them out when they misjudge the budget or spend more than what they have. As a retiree, I have a limited income budget and have to adjust within that budget to account for increases for gasoline, electricity, natural gas, groceries, vehicle repair, etc.,... I don't mind paying the fair amount of property taxes that is due, but to keep being their bail out when things don't go the way they predicted is getting old. Now they are spending more money to print new bills and mailing them since the "gratuity" from the state was cut off before the original bills were sent. The "gratuity" should not have been included in the first place and then this second bill would be moot. Remember the smirky smile Fred had... Last I heard, Columbia County will not pass the short fall to the property owners, but will find other ways to make up the deficit. I wonder how many other counties are thinking more like CC?
I too am a homeowner in RC and like many others find that the powers that be are just as big a failure as Wall Street. I have mentioned this before, but I will do it again. As the truth about the housing market crisis comes to light so should the illegal doings of State, County and City governments. Our homes have been over appraised for the longest of times so that they could reap the benefits of collecting more and more taxes each year regardless of the true value of your home. Since we already know that the bubble has busted and we have been over taxed, we as a people should file a Class Action LAWSUIT against RC for over appraising and over taxing us. I do not mind paying my fair share but if you are spending my money before I can make it, then take more of my money becaused you fraudulently over appraised my home in the first place is a crime in itself.
"Stand for Something or Fall for Anything"
The problem in Richmon d County is simple: you have idiots serving on the county commission. These people sitting on the commission are without a doubt the dumbest you can find anywhere. I doubt that a single one could score in double digits on an IQ test, and most have never started and run a successful business. When you have lifelong leeches elected to public office this is what you get. Take a look at the membership of the Richmond County Commission and the answer to the county's troubles is in black and white. I am glad I live in Aiken County.
That's right, break the back of the Richmond County property owners again and again. Why should Fred Russell, the county commissioners or the school board adhere to a budget when all they have to do is increase the burden on the taxpayers? I personally am SICK of being taxed to death and am sure I am not alone!
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