One of the issues that is getting a lot of attention in the news these days is tax cuts. The Florida legislature has mandated that local governments roll back local property taxes to last year’s levels in addition to a mandatory cut of from 3% to 9%. Local governments are starting to announce the impacts of these cuts, including reductions in social service funding, cuts in library and parks, and hiring freezes and layoffs. On the other side, some taxpayer groups are calling for larger cuts, pointing to the rapid increase in property tax revenues over the past few years as property values have soared.
This is a complicated subject that unfortunately is being debated through sound bytes rather than considered analysis. Clearly, property tax bills for citizens – mostly those who recently bought homes and commercial property owners, who aren’t protected by the Save Our Homes cap on property assessments, have seen major increases in their tax bills. The outcry about property taxes is thus very understandable, and many local governments have seen their revenues soar in recent years and some have spent this windfall on questionable things. Some level of correction is thus inevitable.
However, the situation is more complex than that. The state has taken advantage of this situation to pass on major costs to local governments, reducing the share of school funding paid by the state from over 60% to less than 50%, has mandated increases in local police and fire pensions, has forced counties to pick up the cost of juvenile detention, and is paying less and less of highway construction and maintenance costs. Local overnments are thus claiming that the mandatory cuts are unfair and at least a bit disingenuous.
What does this mean to the Creative Cities Initiative here in Tallahassee? I think the lesson is to not throw the baby out with the bathwater. There is a danger in over-taxation that can stifle needed investment and redevelopment by the private sector. However, there is also a danger in under-taxation, which can create an artificial scarcity that can feed on itself.
Citizens of Tallahassee understandably are proud of the community that they have built and the creative resources that exist here – including our parks, museums, libraries, and cultural events. Many of these resources are at least in part (and sometimes mostly) supported by all of us through the taxes we pay. In bigger, more industrial cities the private sector can play a bigger role in supporting such resources through foundations and wealthy benefactors. However, there just isn’t that kind of old money in Tallahassee. Consequently, it will take a partnership of public and private capital to continue to maintain and improve our beautiful city. It will also take public and private money to redevelop distressed areas in town and to promote the development of the kinds of creative businesses that can be a vital part of our future.
Blindly cutting taxes beyond a certain point, and adopting a philosophy that any cut in government services and spending is ‘good’ is naïve and dangerous. Citizens don’t want excessive government or excessive taxes. However, we do want good schools, protection of our environment, public safety, and a vibrant community in which to live and raise our families. The Creative Communities Initiative recognizes that abundance can generate more abundant life for everyone, while a mentality of scarcity can result in a downward spiral in our quality of life that can be difficult to reverse. We want limited, but effective government. Like the story of Goldilocks and the Three Bears, we need to create a tax system that isn’t too much, too little, but just right. Doing so will help ensure that Tallahassee remains a great place to live, raise a family, and start and grow a business. And THAT will make us a great creative community.
Best Regards,
Cynthia Marie VanLandingham
