Letter to Editor:

The Effect of City, County and School “BUDGET SHORTFALLS” on Taxpayers.

Last week, Jim Wells County Appraisal District, released 2016 Tax Roll Estimated Values for each Taxing Entity!

-------------------------------------------------------- 

Jim Wells County “Purported” $1.5 MILLION BUDGET SHORTFALL IS ONLY, “THE TIP OF THE ICEBERG”!

Jim Wells County is going to be more like, “$7.4 MILLION IN THE RED”, if they DO NOT CUT EXPENSE or RAISE THE TAX RATE (to cover $7.4 Million NOT $1.5 Million as KIII-3 TV News reported)!

The following is an example of "THE EFFECT OF "PLUMMETING" TAX ROLL VALUES and/or SALES TAX REVENUE on Jim Wells County TAXPAYERS" and why "CUTTING EXPENSE" is so important to Jim Wells County TAXPAYERS (who HAVE NOT moved out of the County, YET).

Jim Wells County= $2,299,441,345 (2015 Total Taxable Value) less $1,956,793,033 (2016 Total Taxable Value) = <$333,648,312> Lost Taxable Value (-14.51%).

$333,648,312 (Lost Taxable Value) X .00550857 Tax Rate= $1,837,925 (Lost Tax Dollars).

$3.7 Million (Adopted “General Fund” Negative Budget) + 1.9 Million (Sales Tax Shortage) + 1.8 Million (Lost Tax Dollars) = $7.4 Million (Resulting approximant Negative Budget). 

Bottom line is that if the County DOES NOT Cut Spending by $7.4 Million they will have to RAISE the County Tax Rate from .00550857 to about .0093 or about 70% INCREASE (in order to balance the Budget).

This is in addition to the 20% County Tax Rate INCREASE over the last 2 years!

--------------------------------------------------------

The following is an example of "THE EFFECT OF "PLUMMETING" TAX ROLL VALUES and/or SALES TAX REVENUE ON ALICE TAXPAYERS" and why "CUTTING EXPENSE" is so important to ALICE TAXPAYERS (who HAVE NOT moved out of Alice, YET).

City of Alice= $1,185,132,173 (2015 Total Taxable Value) less $882,190,764 (2016 Total Taxable Value) = <$302,941,409> Lost Taxable Value (-25.56%).

$302,941,409 (Lost Taxable Value) X .00271826 Tax Rate= $823,474 (Lost Tax Dollars).

$5.4 Million (Adopted “General Fund” Negative Budget) + 2 Million (Sales Tax Shortage) + $823,474 (Lost Tax Dollars) = $8.2 Million (approximant projected Negative Budget). Bottom line is that if the City DOES NOT Cut Spending by $8.2 Million they will have to RAISE the City Tax Rate from .00271826 to about .01179 or about a 434% INCREASE (in order to balance the Budget).

--------------------------------------------------------

Alice ISD= $1,538,386,083 (2015 Total Taxable Value) less $1,177,670,101 (2016 Total Taxable Value) = <$360,715,982> Lost Taxable Value (-23.45%).

$360,715,982 (Lost Taxable Value) X .01284630 Tax Rate= $4,633,865 (Lost Tax Dollars).

4 Million?????? (Negative Budget) + $4,633,865 (Lost Tax Dollars) = $8.6 Million (approx. projected Negative Budget). Bottom line is that if the Alice School DOES NOT Cut Spending by $8.6 Million (or get more State and Federal aid) they will have to RAISE the School Tax Rate from .01284630 to about ????? or about a ????% INCREASE.

--------------------------------------------------------

Please do not misunderstand me; I do not have the answers to this “Dilemma”. I simply wanted to share these figures and my concerns with the Alice Taxpayers (who are still here).

It might be a good idea if some or all Taxpayers would confront their Elected Officials and ask them what they are going to do about these “Unbearable and Unsustainable” potential Deficits?

Sincerely,

Newell W. Atkinson III (a very Concerned Taxpayer)

Alice, Texas