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Unfunded mandates drive property taxes

Thursday, August 2, 2018
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GUEST EDITORIAL: DICKENS COUNTY JUDGE KEVIN BRENDLE

Let's have a look at the property tax bill that many Dickens County folks have recently received and probably already paid. It can be confusing because it came from the Dickens County Tax Collector’s office and you most likely think it is your "county tax bill.” The reality is the tax office collects taxes for both cities in the county, both school districts and a water district. A close look at your tax statement will give you the breakdown. For additional help, drop by the tax office for more explanation.

As you analyze your statement, you will find that the county's portion accounts for the smallest percentage of your total property tax bill. Our cities usually account for about 19 percent as a statewide average. The rest goes to fund the school district in which you live. Here is where the story gets most interesting.

It is important to understand that the Texas Legislature continues to fund less and less of the costs of public education. As a result, the local property owner picks up the tab. From 2008 to 2015, the state's portion dropped 16 percent, adjusting for inflation. In this fiscal year, the number dropped another 1.5 percent. In fact, the latest state budget requires property taxes to increase 13.7 percent to balance the state's public education budget.

Please note that public schools are not the only financial responsibility the Texas Legislature has pushed down to homeowners and small businesses in Dickens County.

Though they may lack the authority to levy a property tax, our state legislature will definitely spend property tax revenue by mandating counties to enact new policies or services. These mandates might be well-intended and even necessary, but they don't come with funding, just a price tag. Politicians in Austin expect local property taxpayers to open their wallets for these, too.

We refer to these new costs as unfunded mandates, and it's costing property taxpayers billions of dollars statewide.

Right now, local officials like myself have no choice but to enact these unfunded mandates and raise revenue through the property tax system to pay for them. We're raising taxes on ourselves, our families, our neighbors … you.

Take indigent defense costs, for example. I am sure we have all heard, "If you can't afford a lawyer, one will be provided for you." That is not just a catchy impact statement for TV viewers, it's a real deal. In the last 15 years, those costs have increased 171 percent statewide, and the reimbursement average statewide is about 12 cents on the dollar. Last year, here in Dickens County, we spent $13,524.91 on indigent defense in all of our courts, and the state reimbursed $6,607.00. That means you picked up that tab with your property taxes.

We have also seen an increase in Child Protective Services (CPS) cases. Did you know the county pays for the attorneys in those cases, too? Attorneys are appointed to represent children and also parents who can't afford representation. And those costs are also increasing statewide, from $35.6 million in 2011 to $45.6 million in 2016. Here in Dickens County, we spent $7,980.91 for court-appointed attorneys in CPS cases last year.

A huge portion of the county's budget goes to the county jail. The state sets the standards, staffing ratios, training, inmate classifications and segregation, meals and nutrition standards, and safety measures for the jail, and all of it is intensely monitored. The cost of inmate medical services alone is staggering. Our costs for inmate medical services last year was relatively low; however, once you figure in the cost of indigent medical services, of which a significant portion is for jail inmates, the figure is over $40,000, and this year we've budgeted $134,402.00, another state mandate that comes with no funding.

Please note that counties routinely supplement state services offered here locally. For example, we also provide office space, equipment, and/ or personnel for:

• Department of Public Safety troopers—office space, radar and radio equipment, administrative staff and office equipment.

• Texas A&M AgriLife Extension Service—office space, office equipment and staff.

• Adult and Juvenile Probation (Community Supervision and Corrections Department)—office space and office equipment.

• Drivers license offices (in some counties where the Department of Public Safety closed local offices).

So, the Texas Legislature has been shifting the burden of paying for schools, their pet projects, and a variety of programs and services to local property taxpayers, yet what you're probably hearing right now is state politicians claiming that they're going to "rein in skyrocketing property taxes."

As you can see, most of the county budget is considered state-mandated. In other words, we don’t have a lot of say in what we must spend your tax dollars on.

So, what can taxpayers do to help reduce or slow the growth of your local property taxes?

The legislature has the power to put an end to this cost shifting. In fact, the Texas House tried to end it last year. They called for a vote on a constitutional amendment to restrict the legislature from passing unfunded mandates on to cities and counties. The senate, unfortunately, wouldn't even consider it.

The key here is a constitutional amendment to stop unfunded mandates. You may hear statements in favor of legislation to end unfunded mandates from our policy makers in Austin; however, we must remember that they know ways around it once passed. Therefore, we must insist that it come in the form of a constitutional amendment.

When contacting your legislators, let them know that real property tax reform includes constitutional unfunded mandate protection. After all, don't you want your say at the ballot box?

It is important to understand that the Texas Legislature continues to fund less and less of the costs of public education. As a result, the local property owner picks up the tab. From 2008 to 2015, the state’s portion dropped 16 percent, adjusting for inflation. In this fiscal year, the number dropped another 1.5 percent. In fact, the latest state budget requires property taxes to increase 13.7 percent to balance the state’s public education budget.