Cobb County’s finances have reached a point where a tax increase might be necessary next year, but reaction is mixed whether to boost one of the metro area’s lowest tax rates.
Last week, Commission Chairman Tim Lee warned that the county’s deficit would be about $20 million going into fiscal year 2012, which begins Oct. 1. An option to close the gap would be a 1.61 millage increase, which is a 16-percent hike to the county’s current rate. The change would mean a $118.80 increase on the county government portion of a tax bill for owners of a $200,000 house.
“We have gotten to the point finally where there is nothing left to cut,” Lee said.
Cobb’s tax digest, released last week, showed another 5.5-percent drop in values, or $1.7 billion decrease, meaning less revenues for the county.
Cobb has not increased its millage rate for more than five years, choosing to balance its budgets with departmental cuts, employee furlough days and service reductions.
But the cuts haven’t gone far enough, Brett Bittner, a Cobb Taxpayers Association board member, said.
“There are lot of things I don’t think we should be involved in and without determining the property role of government, we don’t need to be talking about a tax increase,” he said.
A citizens panel presented several budget-cutting recommendations to commissioners two weeks ago, including consolidating some departments and revising employee benefits.
A tax increase is not the answer, said Bill Byrne, a former commission chairman. He recommended other options such as transferring all but two of the county’s bus routes to the regional transportation authority and eliminating vacant positions from the county’s budget.
A majority of the five commissioners would have to approve any millage increase. Thus far Commissioner Helen Goreham has been the most vocal about raising taxes to balance the budget.
Commissioner JoAnn Birrell, who held out last year against a millage increase, could be swayed to promote one this year if the budget calls for more cuts to public safety.
“Raising the taxes for me is a last resort,” she said. “If public safety is in jeopardy at any point, I would support a millage increase."
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