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By Marc, September 21, 2011 6:07 pm

If I were Paul Milde (R-Aquia), I’d too want to forget all about the $40 Million public safety radio communication system. I recently wrote about how bad of a deal this was for Stafford taxpayers.

At last night’s Board of Supervisors meeting, the board was presented with an updated Telecommunication Plan – which was to be voted on as an amendment to the Comprehensive Plan.

Director of Planning and Zoning, Jeff Harvey, got things started by presenting the key points of the proposed Telecommunication Plan – which is meant to address broadband communication in its various forms and the guidelines for placement of towers throughout the county. Of particular note, the plan “encourages the placement of telecommunication towers on county owned properties.”

What ensued was an unexpected discussion on tower leases and the public safety radio communication system between Anthony Romanello and Paul Milde.

Milde wondered whether it was “legal” for the county to be in the business of building towers and leasing towers to individual users.

Romanello said, “We certainly could have as part of our public radio communication system. The direction from the board, which was probably six years ago now, was no new towers. So we made a conscious decision to work with the existing infrastructure that was in the county, which is why were in most cases we are leasing.”

Milde then realizing that he had stepped in it shot back to Romanello that he wasn’t talking about the public safety radio communication system. If I were Milde, I’d try to avoid talking about this at all costs. After all, he voted for Sheriff Jett’s outrageous deal in the first place.

Romanello responded by saying that “I understand that but that would have been an opportunity to go into that business and then to have leased out that space or the existing capacity to the private sector.”

As I’ve previously noted, Supervisors including Milde and Mark Dudenhefer (R-Garrisonville) had previously directed the consultant to “only consider the existing shorter towers [(existing infrastructure)] rather than a potentially less expensive option with fewer taller towers.” Cost containment was not a requirement.

I’m not suggesting that we should have built the towers on county-owned land, but no consideration was given to cheaper options. Romanello’s quote suggests that had we built the towers and leased out any remaining capacity to the private sector that we could have generated revenue for the county. Instead, we negotiated many “sweetheart” long-term leases with outrageous annual escalation rates. What an outstanding job by Sheriff Jett, Milde and Dudenhefer.

I had previously noted my opposition to the way that the radio system was financed – through more expensive Lease Revenue Bonds versus cheaper General Obligation Bonds. Lease Revenue Bonds guarantee repayment from the revenues generated by a specific revenue-generating entity associated with the purpose of the bonds. In Romanello’s example, leasing out excess capacity on the towers would have generated revenue; thus, a case could have been made for these more expensive bonds, if the revenue generated was enough to justify them. However, I still believe voters should have had a say on a procurement of this size.

Where was Milde’s curiosity when he was voting in favor of the public safety radio communication system in the first place? Milde “doesn’t know what the tower owners are charging per spot”? Obviously he has a short-term memory. Let’s review a few examples of what he voted for.

The Thorny Point tower site is costing us $57,000/year with a 15% escalation rate every five years and the Powell tower site is costing us $51,000/year with the same escalation rate as Thorny Point, as a few examples. Let’s not forget that the Free-Lane Star is earning $1.3M from us for one of the towers over the next 30 years (hmm, I wonder). I’ve also been told that the Free-Lance Star had been approached for many years by many parties to lease this tower and those parties were repeatedly turned aside. I guess Jett and company offered them a deal that they couldn’t refuse.

I never cease to be amazed. Thank goodness voters have other options this year: Chuck Feldbush (I-Stafford) for Sheriff, Tim Barbrow (I-Stafford) for Commonwealth’s Attorney and Dean Fetterolf (I-Rock Hill), Charles Latimer (D-George Washington) and Fred Sweat (D-Griffis-Widewater) for Supervisors.

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By Marc, April 26, 2010 8:35 pm

I was recently made aware of some footage of Stafford County Supervisor Paul Milde (R-Aquia) at a 2009 fundraiser at Hope Springs Marina in Stafford, VA. In the video, Milde spent quite a bit of time thanking everyone for their help in planning this fundraiser.

Of particular note, Milde thanks Jimmy Franklin for the food and accommodations that he provided for this fundraiser. Jimmy owns the Hope Springs Marina. He also thanked Skip and Cindi Causey for their donation of wine. Skip and Cindi own the Potomac Point Vineyard and Winery, also in Stafford County. Lastly, he thanked a person by the name of John for DJ Services that he provided and even suggests that attendees at his fundraiser grab one of his cards.

So how did Milde potentially break the law? I’ve poured through his Campaign Finance Reports from 2009 and was unable to find any in-kind contributions for the marina, food, wine or DJ services. Surely, based on the size of the crowd, each of these donations were above $100.

According to the Campaign Finance Disclosure Act of 2006, Milde was required to report such in-kind campaign contributions.  By not reporting such contributions, Milde could be subject to a civil penalty.

I’ve long heard rumors of these sort of violations of campaign law by him; however, I’ve never seen any hard proof. To me, the video clearly shows Milde thanking folks for various in-kind contributions made to him – none of which appears on any of his campaign finance reports (you can see the full video here). Given Milde’s experience running for office, he certainly must understand what is required of him. One can only wonder what else he may be hiding?

Milde is certainly no stranger to the law. In 1986, Milde was convicted of possession of cocaine with intent to distribute and sentenced to six years in prison, five of which were suspended. In 1995, he also plead guilty to attempted burglary as an accessory after the fact in Fairfax County.

Just last year the Free Lance-Star also reported that “tax records between 1993 and 2009 show that Milde and companies he owns or that bear his name have a history of delinquent county taxes and federal tax liens.” Perhaps most disturbing was the fact that while Milde served on the board (his first term), “[Stafford] county sent him at least 30 delinquent real-estate tax bills on Garrison Woods condominiums owned by McMillion and Milde L.L.C.” If that wasn’t enough, while on the board, his company Closet Interiors Plus “was subject to four federal tax liens.”

Given Milde’s checkered past, one has to wonder whether he willfully omitted the aforementioned in-kind contributions from his campaign finance reports? I have a feeling we are all about to find out real soon…

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By Marc, April 23, 2010 10:29 pm

The Republican majority on the Stafford County Board of Supervisors sent a clear message on Tuesday evening to county residents and potential new businesses, “They do not value education and would prefer to play politics with our children’s future.”

They voted to underfund Stafford Schools to the tune of $5.6 million, providing a total of $100,693.774 in local money. The original request by the School Board was $106,371,217. This is approximately a 5.5 percent decrease from what was requested; and, it is approximately 3 percent less than the amount of county funds transferred to the schools in FY’10.

When adding in other revenue (state and federal), the Board of Supervisors adopted a total school operating budget for FY’11 of $237,261,940.  This is also a nearly 5 percent decrease in the total operating school budget compared to FY’10. The total budgeted amount in FY’10 was $248,480,087.

I know, I know, Republicans will tell you that the school system only estimates that they will spend $233,434,297 for FY’10, so they will claim to have provided a overall year-over-year increase for FY’11. This couldn’t be further from the truth.

Here’s the truth. In formulating the FY’11 budget, the school system projected a severe decline in total expected revenues. This was partly due to FY’10 non-recurring revenue sources (e.g. carryover funds from FY’09 being expended) and declining state and local revenues. The reasons for declining state revenues were mostly due to economic conditions; however, it was Gov. Bob McDonnell (R-VA) and Speaker Bill Howell (R-28^th) who chose to cover the majority of the state budget shortfall by slashing education spending.

Local revenue was declining too, but it wasn’t only because of economic conditions. You see, Stafford Republicans decided to exacerbate the county’s budget shortfall by repealing the business tax. This is the same tax that was estimated to generate $3.7 million in FY’10 and projected to generate $120 million over the next 20 years. In order to pay to repeal this tax, they used a portion of a school surplus that was discovered last year – due to a county accounting error. Add in the lost revenue from this tax in FY’11 and you’re staring down a self-inflicted $11.1 million problem created by Stafford Republicans. These funds could have been used to fully fund our schools.

Stafford Schools were dealing with a projected $25 million plus revenue shortfall for FY’11, due to these fiscal realities, so they took aggressive measures to avoid a potentially catastrophic budget situation. These measures included freezing expenditures of FY’10 federal stimulus funds, closely monitoring discretionary spending and instituting a hiring freeze. That is the reason why FY’10 spending is less than what was actually budgeted. This doesn’t mean that the school system doesn’t need these additional funds. They just needed them more in FY’11 to avoid a looming budget cliff, which would have resulted in significant teacher layoffs.

You see the school system did the responsible thing. This is more than what I can say for the county whose expenditures have regularly exceeded revenues in recent years. Due to this fiscal irresponsibility, the school system has had to bail out the county on numerous occasions. These bailouts have come at the expense of our teachers and children.

Also, can anyone remember the last time the county had a “clean” audit? In recent years, they have been repeatedly cited for significant deficiencies in their internal controls that resulted in reconciliations between the Treasurer’s Office and Finance Department not being performed in a timely and consistent manner throughout the year; and, just last year, they were cited for a material weakness in their internal controls that resulted in the discovery of a school surplus.

Here’s how their auditor defines the various deficiencies:

A control deficiency in an entity’s internal control over compliance exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity’s ability to administer a federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by the entity’s internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected by the entity’s internal control.

If this doesn’t provide a moment of pause for folks, the fact that the Republican majority on the Board of Supervisors decided to take some financial authority away from the School Board by categorically funding the school operating budget this year should. I would think that they would focus on getting their house in order versus micro-managing the School Board.

This same majority on the board claims that by categorically funding the schools that the School Board will be forced to provide step increases for teachers, while denying administrators any raises. This shows how little they understand the school budget and budgets in general. The administrative category doesn’t ONLY contain administrators, but also critical “instructional” support personnel. It contains school nurses, occupational therapists, physical therapists, psychologists, speech therapists, social workers, and many other critical positions.

Let’s also not forget the other line items in the budget. Without bus drivers to get our children to school, how many of us would have to significantly adjust our work schedules to drop our children off? What about custodians who help maintain a clean environment or school security guards who help provide a safe environment for our children to be able to learn? What about technology teachers or computer technicians?

Clearly all of these employees play a critical role in educating our children. The fact is that the Republican majority on the board has neither “fully funded” the instruction line in the budget or any other lines for that matter. This is how they define working with the School Board. At least Supervisor Cord Sterling (R-Rock Hill) was being honest when he called for folks to fire the School Board. You see the Republican majority has no interest in working with the School Board; they simply want to get rid of them.

It’s also easy for them to say that teachers should get a step increase, but any step increase has a recurring annual cost. Part of the money for a step increase approved late last year by the School Board is currently being held in abeyance. Is the Board of Supervisors willing to provide the $3.8 million necessary to fund this step increase annually? I think not. It’s just more lip service for politicians more interested in the next election versus educating our children and providing fair compensation to our educators.

For Republicans, it’s easier to point fingers at the School Board then at themselves. The 12^th richest county in the nation should at least be able to provide fair pay to teachers. Currently, teachers in Stafford County make 10 percent below the national average.

I’d also like to remind folks that even if Republicans provided the same amount of funding to our schools as they did last year, this would still be an overall decrease in funding year-over-year. There are many fixed costs that rise annually, which must be funded. Just this year, health care premiums have risen for employees by 8.2 percent. The school system’s share of this increase equates to $1,807,039. What about mandatory increases for the Virginia Retirement System and retiree health insurance to the tune of $2,600,000.

It’s also not like operational and maintenance costs are decreasing. School buses are a good example. As part of Gov. McDonnell’s school budget cuts, he chose to extend the life of school buses from 12 to 15 years. The cost to maintain these buses past 12 years will be significant.

So simply providing the same amount of funding to the school system year-over-year would actually constitute a funding decrease. As I mentioned above, the Republican majority actually provided 3 percent less local funds than they provided last year.

Our schools are simply not a priority for this Republican majority. You need look no further then Stafford’s new 10-point Economic Development Plan where there is no mention of education.

In fairness, this hasn’t been a priority of any board for many years. Over the years, the Board of Supervisors have whittled away their local contribution to our schools. In the 10 years preceding 2006, based on past county budgets, 69 percent of county expenditures went towards our schools. In the recently approved budget, we are now down to around 54 percent.

Based on the latest data from the Virginia Department of Education, Stafford County now ranks 117 out of 132 districts in per pupil spending.  The local per pupil spending in Stafford County was $4,050. This is 36 percent below the state average of $5,504. Based on the amount of local funds provided to the school system this year, local per pupil spending will equate to $3,766.08. This is 46 percent below the aforementioned state average.

For those of you thinking that we are spending too much locally on education, I’ve got some news for you. Based on the projected number of students in FY’10-11 (26,737) and the number of required instructional days each academic year (180), Stafford County is ONLY paying $21 per day (or $3 per hour – based on current 7hr High School day) to educate our children. This hardly seems like a huge local burden.

Let’s put what Stafford County pays into better context. Last year, Stafford contributed $5,246,158 to the Rappahannock Regional Jail. They essentially share the costs to run the jail with the state, Fredericksburg, Spotsylvania and King George, based on the percentage of inmates they have currently in the jail. On average, the daily inmate count is somewhere around 950. Based on what we pay, let’s say for arguments sake that one-quarter of the inmates are from Stafford. That means we are paying approximately $60 per day to house our inmates. So are housing our inmates more important than educating our children? I say we ask Stafford County Supervisor Paul Milde (R-Aquia).  After all, he is on the Rappahannock Regional Jail Authority and is a former inmate himself (sorry, I couldn’t resist).

This sustained underfunding of our schools is having an effect and will have a bigger effect in the years to come. Currently, 53 percent of our schools have failed to meet Annual Yearly Progress; we now have the third highest K-7 pupil/teacher ratio in the state; and 80 percent of our Standards of Learning scores are at or below our neighbors or the state average, according to the Chairman of the School Board’s Finance and Budget Advisory Committee. If you seriously think that things are going to get better, based on these very troubling educational measures, you’ve got another thing coming.

The problem is that the funding problems will be even worse next year; and, the funding cliff that was avoided in FY’11 will be even higher in FY’12. The Board of Supervisors will not be able to rely on federal stimulus funds to supplant what should be a greater contribution to our schools by the county. This is because these funds will expire in FY’11.

What’s worse is that the Republican majority on the Board of Supervisors strongly believes that our schools are overfunded, not underfunded. If Supervisors Paul Milde (R-Aquia) and Susan Stimpson (R-Falmouth) had their way, they would have even slashed more from the school budget this year.

Stafford Republicans need to get their priorities straight and fully fund our schools. They constantly talk about bringing businesses to Stafford. I can assure you that businesses are taking notice of the complete lack of support the county is providing to its schools, when making decisions on whether to relocate.

Also ask yourself, what is the first thing someone asks a real estate agent when deciding on whether to relocate to a specific area? They want to know how strong the school system is there.

It’s time for Stafford Republicans to make education a priority again!

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By Marc, April 13, 2010 7:34 pm

On April 10, 2010, Supervisor Cord Sterling (R-Rock Hill) addressed his fellow tea baggers at a Tea Party rally in Stafford, VA.

Sterling is the worst type of politician: one who will say or do anything to further his political ambitions by distorting the truth. He loves to portray himself as a moderate Republican, but pretty much shattered this self-created myth when he came out of the closet as a tea bagger this past weekend.

Sterling railed against the recently signed health care reform law. In trying to get the crowd pumped up against this, he described how Sen. Chuck Schumer’s (D-NY) daughter was so happy that she didn’t need to work and could now be added to his health care plan. He claimed that this epitomized everything that was wrong with this bill. Only one problem for Sterling, this couldn’t be further from the TRUTH!

Here are Sterling’s exact words:

[Sen. Chuck Schumer’s] daughter had just called him, she was graduating or graduated from college, she said, “Good news dad, I don’t have to get a job now I can be on your health care bill.” He thought that was great, she gets health care I get the bill.

Here’s Sen. Chuck Schumer on March 28, 2010 on Meet the Press:

If you’re up to 26 years old you can stay on your parents’ health coverage. My daughter is graduating from law school. We told her the day after she graduates she’s on her own. She has a job in September, but she was fretting what does she do for the four months? Does she buy health insurance for $1200 a month? Well, she called me up at midnight after the bill passed and said, “Dad, I’m covered.”

I love how Sterling just makes shit up. This has become a disturbing pattern with him.

Sterling then pivoted from health care to judicial activism. Sterling rallied his fellow tea baggers, when he alleged that judges were displaying judicial activism by advocating the need for additional courtrooms within Stafford County, Virginia. Nothing fires up tea baggers more than evil judges.

Here’s what Sterling actually said:

The judges that occupy this building, they want to tell us that we need to spend an additional $30 million to build them a new courthouse…we have six judges, seven courtrooms and they think we need more courtrooms…it is essentially a 7 or 8 percent tax increase that they want to force upon us.

This is a convenient argument for Sterling. Only problem, if you’ve already guessed it, it isn’t completely true. I’m sure that you’re shocked by now.

The need for additional courtroom space has been many years in the making. In fact, Stafford Supervisor Paul Milde (R-Aquia) was on the original committee, I believe back in 2006 or so, that was tasked with the responsibility of coming up with cost-effective designs for new courtrooms. The total cost of their proposal was around $36 or $37 million.

The Board of Supervisors actually decided that this was too costly and voted to defer it until a later date. They decided to eventually revisit this issue and setup a citizens committee that they hoped would develop a more cost-effective proposal. They ended up proposing to refurbish the existing courthouse to the tune of between $23 and $25 million, which would have added two additional courtrooms.

I’ve spoken to several folks associated with Stafford County. They all noted that the current facilities are incredibly crowded and more space is needed. The courts are facing significant caseloads and are becoming overwhelmed, due to the facility constraints.

I know someone who recently served on a jury who said that the current facilities were a mess. Folks were strongly complaining about the overcrowding and the incredibly high temperature, due to so many people packing themselves into the facility. The Board of Supervisors have clearly identified the need for additional courtrooms; otherwise, they wouldn’t have been trying to find a cost-effective solution all of these years. The reality is the problem has only gotten worse.

The judges have simply identified a need and haven’t dictated a $30 million solution. It is folks like Milde and a citizens committee that have come up with these estimates.

There is no doubt in my mind that a real need exists. Sterling can ignore a county need, which he is really good at doing, or directly address it by coming up with a cost-effective solution. It’s clear to me that he would rather use this for political theater versus directly addressing it. If I were him, I wouldn’t get pulled over in Stafford County for any speeding tickets.

After his judicial activism bit, he wasn’t done with misleading his fellow tea baggers.

He praised himself for ridding the county of its Department of Transportation (DOT). He did rightfully note, in my opinion, that this department was completely unnecessary. I noted this in a prior blog post. However, his claim that he got rid of this department and saved money is a bit of a stretch. Stafford’s DOT employees were simply moved to another department. I’m by no means advocating that they should have fired these employees. What I am saying is that his claim that he is shrinking the size of government is a complete stretch. Plus this was the first time I’ve ever heard him speak out about this issue, so it’s interesting that he is claiming credit for it now.

Sterling wasn’t done with his distortions and attacks. He saved the best for last. He launched into a blistering attack of the school board. He claimed that the school system was asking for a $7.5 million increase in their school budget from last year, of which only $126 thousand would be used for education and the rest would go towards school administration. This is another flat out distortion of the facts by Sterling.

I’ve written quite a bit about our schools, so I won’t reiterate everything I’ve said before here (you can check out posts here, here and here). The short of it is that the school board requested the same level of funding that they received last year, which is actually a decrease when you take into account rising costs and cuts by the state.

I’ve spoken to folks associated with the school board and it appears that Sterling is simply adding up increases to various line items in the school budget without taking into account all of the line items that have been cut. He is simply cherry picking numbers that further his political agenda, which is defunding and crippling our public school system.  This was a popular theme throughout the Tea Party rally.

Sterling’s additional assertions on how money is being spent couldn’t be further from the truth. He simply doesn’t understand the school budget.

If he were so concerned about how money was being spent, you would think that he would sit down with school administrators or school board members to ask questions and work with them? You see that would make too much sense. He would rather scream, yell and distort the facts for his own political gain. His re-election slogan next year should be, “Putting Politics Ahead of Our Children.”

I also especially love Sterling’s call for the school to find efficiencies, which I think they have done an admirable job of thus far. This from the Board of Supervisors who haven’t had a clean audit in years! In the name of saving money, the school board refinanced some debt that saved the school system and county around $3.6 million. Sterling rewarded the school board by robbing them of this savings and using it to fund some of his other priorities. After all, getting re-elected is paramount.

I especially love the tea baggers from the crowd that screamed, “Fire them.” Referring to the school board, which Sterling responded, “I’m all for it, that’s in your hands. It’s in my hands too as a voter. I can’t fire them as a Supervisor.” Naturally, for Sterling, publicly insulting the school board and calling for their firing is a great way to build a strong working relationship.

I have a message for Sterling. The only person getting fired next year is you!

Comments (9)

By Marc, February 9, 2010 7:40 pm

In case you missed it (given all of our winter weather), the Republican majority on the Stafford County Board of Supervisors repealed the Business, Professional and Occupational License (BPOL) tax on February 2, 2010. I pretty much said that this was a forgone conclusion in my last post on the subject here. I’m not going to reiterate all the points I’ve already made on the topic, so if you’re interested check out my last post.

For those that were unable to attend the public hearing, I decided to put together a little video of highlights lowlights. I actually think that the Republicans can teach a course on the art of twisting the facts. As Albert Einstein once said,

If the facts don’t fit the theory, change the facts.

A few key takeaways before you go. I certainly have some issues with BPOL in general; however, what troubles me the most is the fact that Stafford Republicans continue to misrepresent the facts to further their position on the issue.

They refuse on leveling with residents on how they plan on addressing the huge shortfalls present in the FY ’11 budget. Yeah the $26 million school shortfall and the upwards of $19 million shortfall in the county budget.

It still makes no sense to me that Republicans would use a surplus, which could have been used to lessen the impact of the tremendous shortfalls projected in the upcoming budget, to repeal an annual revenue source that some predict would equate to $140 million over the next 20-years.

For FY ’11, it was projected that BPOL would provide the county with $3.7 million of revenue. Combine the $3.7 million of BPOL revenue now lost with the $3.7 million of the surplus that must be used to cover the costs of repealing BPOL in the FY ’10 budget and the total impact to the FY ’11 budget is $7.4 million. So when the county is facing tough fiscal realities, the Republicans vote to make things even worse for the county, our schools, our roads, our law enforcement and our fire and rescue.  That $7.4 million could have meant that more teachers and deputies would be able to keep their jobs. It could have meant that some much needed road improvement projects were able to happen next year.

The Republicans have failed to have an honest debate with the public on the impact of the decisions that they are making. The reality is that Republicans will have one of two choices now: (1) Drastically reduce core services or (2) raise taxes on existing homeowners. They failed to level with residents during the BPOL debate and chose to avoid laying out the impact of their decisions.

Stafford County is the second fasting growing County in Virginia and, as such, has an ever-increasing need in maintaining and improving core services. As I stated previously, 53% of Stafford Schools do not currently meet Annual Yearly Progress requirements. Will businesses really choose to relocate to a school system that is failing? I think not.

Listen, I have no problem with repealing the BPOL tax as long as the Republicans showed how they planned on replacing this revenue source. BPOL is not a perfect tax, but it is one of the only tools that localities have on raising revenue locally that is not on the back of homeowners or consumers. If businesses have problems with the structure of BPOL, they need to work with their delegates and state senators to fully address them in the General Assembly. I do think that small businesses have some really good points on BPOL. What we need is an equitable tax structure for homeowners, consumers and businesses.

In the end, I’m most upset by the fact that the Republicans used a recently found surplus (due to an administrative error) to repeal BPOL. This is the same surplus that they cried about holding onto back in December when Democrats proposed spending it. I was equally critical of spending this surplus when Democrats tried to do it too.

This political posturing must end and the residents of Stafford County deserve to be put first again!

Comments (4)

By Marc, February 1, 2010 5:31 pm

Unless you have been living under a political rock, everyone should be no doubt aware of a public hearing scheduled for tomorrow to reinstitute the merchants’ capital tax and nix the BPOL tax. Republicans made BPOL a key issue during the last campaign and pledged to kill it. They ended up winning a majority on the Stafford County Board of Supervisors (5-2) and are poised to follow through on their pledge tomorrow (this is actually a forgone conclusion).

How do Republicans plan on paying to repeal BPOL (since the money was already included in the FY ’10 budget)? As I predicted back in December (here and here), they plan on using the remaining $4.8 million surplus. That’s right, the $4.8 million (It was actually $6.2 million, but some of the money was already spent) that was discovered late last year because of an accounting error between the school board and the county two years ago. When Democrats proposed spending the surplus in December, Republican outrage boiled over. Supervisor Cord Sterling (R-Rock Hill) had the following to say when Democrats proposed spending the surplus,

We have a bleak financial outlook…It’s not a responsible way to govern. We need to put governance ahead of politics. Let’s wait and figure this out during the normal budget process.

And Supervisor Paul Milde (R-Aquia) added,

This amounts to a $6.2 million raid of Stafford’s accounts…I see Democrats trying to give away $6.2 million.

I would ask Sterling and Milde what has changed since December? Could it be that they are now in the majority and want to use the funds for other purposes? To Sterling, how is it good governance to repeal BPOL and cover the revenue loss with the surplus? I guess the financial outlook isn’t as bleak as it was in December or the outrage a month ago was more about wanting to save the money so that it could be used to repeal BPOL. It sounds to me that politics is being put ahead of good governance.

To Milde, I guess the Republicans are now trying to give away the remaining surplus. The only difference is that Democrats were giving the money to teachers and deputies, plus funding a required trust setup for post-employment benefits of school and county employees; and Republicans are choosing to give money to local businesses by repealing BPOL. This is not to say that one group deserves the money over another, but these are just simple facts.

Like I said back in December, both Republicans and Democrats wanted to spend the money in different ways. That is what made the Republican outrage so disingenuous. I was against spending the surplus until the budget picture became clearer. It is now clear that things are continuing to deteriorate and the FY ’11 budget already contains a $6.9 million revenue shortfall. Given declining state revenues, the picture will surely get worse. Repealing BPOL will only compound and exacerbate the already precarious budget situation.

It is no secret that I have been highly critical of the way in which BPOL was passed in the first place and have some serious issues with the structure of it. The reality is that localities are limited in the number of tools at their disposal to generate revenue. Unfortunately for homeowners, when additional revenue is needed that usually equates to higher property taxes. What we need is an equitable tax structure for homeowners and businesses. That doesn’t mean that businesses should be punished, but we need to understand that everyone has a stake in our communities and work towards some compromise.

Del. Mark Cole (R-Spotsylvania) recently introduced a bill to prevent any localities that have not enacted BPOL by January 1, 2010 from doing so in the future.  This doesn’t seem like much of a compromise to me, but politics at its’ worst. It is important to note that BPOL is a tool provided by the state to the localities and any changes to it must be introduced and passed in the state legislature.

Whether you are for or against BPOL is beside the point right now. The reality is that a bi-partisan group of supervisors, including Sterling and Dudenhefer (R-Garrisonville) approved the FY ’10 budget, which clearly included BPOL as a revenue stream. It seems fiscally irresponsible to me to remove a revenue stream by spending the surplus (double whammy there), which could instead go towards reducing the looming budget deficit. We need to do everything in our power to protect our core services (e.g. education, police, fire and rescue). The reality is that we are in for either severe cuts to these services (many of which are already cut to the bone) or a massive increase in homeowner’s property taxes to sustain them. So what are Republicans proposing going forward? I’m waiting…

I, for one, am deeply concerned about our schools. Did you know that approximately 53% of Stafford’s schools did not meet Adequate Yearly Progress (AYP) last year? No Child Left Behind stipulates that any school system that receives federal funds must meet 100% AYP by 2014; and that schools that don’t make AYP for two or more consecutive years in the same content area be sanctioned, which would ultimately affect federal funding. If Stafford is hoping to attract businesses to the area, I assure you that a failing school system will not convince them.  The remaining $4.8 million surplus could easily mean that more teachers keep their jobs (ensuring reasonable class sizes) and we can make the necessary investments in our schools for fiscal year ’11 and beyond.

The Republicans have tried to make the argument that BPOL will hurt businesses and cause them to leave Stafford County in this economic climate. If that is the case then why isn’t Spotsylvania or the City of Fredericksburg considering a repeal of BPOL? Again this isn’t an argument for or against BPOL, it is simply a fact. Yes, a fact that current Supervisor Gary Snellings (R-Hartwood) agreed with in 2004.

Snellings said the following about BPOL back in 2004,

My argument has always been that if you have BPOL, you will run businesses out of the county…But I don’t see businesses jumping across the Rappahannock River because Stafford doesn’t have BPOL.

Snellings went on to say back in 2004,

I have never been in favor of BPOL…Until now. I don’t see any other way we can relieve some of the burden on homeowners other than putting it on BPOL. Nobody likes taxes, but the reality is, this is not as big a burden as we are being led to believe.

So in summary, Snellings didn’t see businesses coming to Stafford because of not having BPOL, believed BPOL provided a means to relieve the tax burden on homeowners and it wasn’t as big of a burden as everyone was being led to believe. Now he and his Republican colleagues have changed their mind on BPOL? Since I don’t believe there have been any substantive changes to BPOL since 2004, why the sudden change in opinion? Again, this is politics at its’ worst.

Going forward, we can only hope that our elected officials put the needs of the many over their own. The severe budgetary problems we are facing belong to no political party. It is time for them to put Stafford County residents first. I’m tired of the hypocrisy. What we need is fiscal restraint and responsibility and not political posturing.

It is already a forgone conclusion that Republicans will use the surplus to repeal the BPOL revenue stream (which some have stated would equate to $140 million over the next 20 years). The problem with all of this is that Republicans still have failed to address the revenue stream problem moving forward and have instead tried to make repealing BPOL appealing through the use of the one-time windfall (surplus). They are essentially out selling the bearskins before they have even found the bear.

At this point, I can only hope that Republicans level with county residents on what this will mean in terms of our property taxes and core services moving forward; however, if history prevails, I won’t be holding my breath.

Comments (3)

By Marc, December 4, 2009 2:02 pm

As most are no doubt already aware, an accounting error between the school board and the county two years ago, recently confirmed by the results of audits, has led to a sudden $6.2 million surplus in county coffers.

This past Tuesday at the regular meeting of the Stafford County Board of Supervisors, the board approved a resolution authorizing the appropriation of a portion of the aforementioned surplus – approximately $1.4 million to be exact. Supervisor Joe Brito (I-Hartwood) introduced a resolution that would have provided a 1.5% continuous pay rate increase to school employees.

A heated discussion ensued between board members. The result was a substitute motion put forth by the Republicans that nixed the 1.5% continuous pay rate increase for school employees, which would have brought pay in line with Spotsylvania County. The substitute motion, instead, proposed a one-time bonus be paid to certain categories of school employees and to sheriff deputies. This substitute motion eventually carried with all Republicans on board and Supervisor Crisp (D-George Washington) voting in favor of it. Supervisors Schwartz (D-Falmouth), Woodson (D-Griffis-Widewater) and Brito (I-Hartwood) voted against the resolution.

…Listen, ALL school employees (minus the overpaid administrators) deserve a continuous pay rate increase after two years of salaries remaining essentially stagnant while health care premiums have continued to soar, which has ultimately led to a decrease in employees net pay; however, is dipping into this surplus to pay for this increase advisable…The answer to me is NO…In November, State Sen. Ed Houck (D-Spotsylvania) warned the Spotsylvania County Board of Supervisors that (from the FLS):

The state’s biennial budget has already been cut by $7 billion, he said, and to finish out the current fiscal year, Houck said it is likely the state could have to make $200 million to $300 million more in cuts to make up for falling revenues.

Looking forward to the next two-year budget period, for which Gov. Tim Kaine will announce his plan next month, Houck said the state could be looking at another $3 billion in cuts.

That will be hard to do without cutting education funding again, and Houck said that at this point his goal is “to control permanent damage to our core services.”

…It is VERY likely that based on declining state revenues that education funding from the state will be cut…Not to mention that Gov.-elect McDonnell (R-Virginia) has proposed taking a significant amount of money ($5.4 billion) out of the general fund to pay for his transportation initiatives, which would undoubtedly lead to further reductions in education funding locally…

…I believe that if common sense prevailed on the board that our schools wouldn’t be getting short changed and school employees would be rewarded…Why is no one talking about the fact that the county has a large transportation department when they have no money or responsibility for transportation or why Supervisors Dudenhefer (R-Garrisonville) and Milde (R-Aquia) are so hell bent on spending $45 million on the $25 million radio communication system the county is buying…Why is Stafford County buying a $25 million radio communications system in the first place…This happens to be one of the most expensive systems around and it appears to me that Stafford County taxpayers would have be better served by a more appropriate choice in systems…It is clear to me that we need some major changes to the way procurements are conducted in this county…

…In the end certain categories of school employees and sheriff deputies will be getting bonuses, based on the aforementioned substitute resolution passing…I think that ALL school employees (minus the overpaid administrators) are deserving of this bonus, although I completely disagree with the fiscally irresponsible means by which this is being funded…While I have a great amount of respect for the job that sheriff deputies do, was it really necessary in these fiscal times to provide a second pay increase for deputies this year when many other county employees have received nothing….How about board members put aside their difference for a change and do right by Stafford County…

Supervisor Joe Brito (I-Hartwood) then proposed enacting a new ordinance that would allow Stafford County to return real property tax revenue to taxpayers in any fiscal year with a surplus. This proposal would have provided an equal payment amount to every taxpayer in Stafford County; however, an amendment was adopted to have the payments distributed on a pro-rata basis. The adoption of a county ordinance requires that a public hearing be held. On a 5-2 vote, with Brito (I-Hartwood), Schwartz (D-Falmouth), Crisp (D-George Washington), Woodson (D-Griffis-Widewater) and Sterling (R-Rock Hill) voting in the affirmative, a public hearing was scheduled on Dec. 15 to potentially adopt this ordinance.

…Consistent with my prior comments, I do not believe the surplus (now down to $4.8 million) should be touched, at this point, with expected state cuts coming down the pike…Providing rebates to taxpayers is not a bad thing; however, given our current economic fiscal condition it is fiscally irresponsible…

…The Republican outrage is also quite disingenuous (earth to Dudenheffer and Milde)…The only reason they are outraged is that they want to spend the surplus on repealing the business tax, which is also fiscally irresponsible at this point…Any decisions on spending this surplus should wait until there is a clearer picture from the state on the size of cuts to expect…

…If the same folks that are so against the business tax stopped wasting county money on overpriced consultants and procurements, the repeal of BPOL could be paid for several times over without cutting any services or dipping into any surpluses…

…Given where revenues are headed at the state level, if the surplus is spent there is a high likelihood that property taxes will have to be raised to offset this loss of revenue or there will be severe cuts to core services…Of course this might still happen if the downturn is severe enough, but why put the county in such a position…It’s time to put aside the partisan bickering and do what is right for Stafford County…

…I hear that Dudenheffer actually threatened Crisp with political retribution, after following him to his car to scold him for his support of the rebate ordinance…This sort of behavior is over-the-line, especially from someone who is rumored to be the next Chairman of the Stafford County Board of Supervisors…The “Dude” needs to get ahold of himself and his political ambitions, if this board has any chance of functioning in the near future…