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By Leon G. Russ
HOMETOWN NEWS

Staff writer Theron Willis contributed to this story.

When it comes to South Carolina you won’t find a dirtier word than taxes.
Have you ever heard a politician state taxes need to be increased?
If so, you must have been having a nightmare.
However, falling revenue coupled with years of cutting taxes is about to come home to roost in South Carolina.
Of course your state legislature is working hard to balance their budget without raising taxes.
How are they going about doing that?
One way is to cut funding to local cities and towns through Aid to Local Government, a program that distributes state funds to municipalities across the state.
Spartanburg Assistant City Manager Chris Story noted the State General Assembly broke the formula that had been in place for years. He said when they did that it shifted the burden to the local taxpayer.
Story added, “The formula kept a year-to-year fairness to the equation that allowed local government to predict and plan their budget. Suspending that formula has led to uncertainty going forward.”
He added, “It used to be a straight-line equation where local municipalities got a straight percentage of the state general fund.” Story explains, “If the state general fund grew in good years and shrunk in bad years, they just followed the formula.”
For fiscal year 2010 the General Assembly passed special legislation to break that formula and cut the Aid to Local Government Fund deeper.
Story states he understands the state legislature’s need to cut but “it creates some uncertainty” for local governments.
Story explained why local governments receive Aid to Local Government. “Local governments help the state meet it’s obligations through mandates from state law,” he said.
While former President Ronald Reagan’s commandment to not speak ill of fellow Republicans is something that serves the GOP well, finger pointing may begin as the current recession continues to drag on and on and local municipalities are stretched to the breaking point.
In fact when you talk to local town and city officials you learn that local governments have tightened their belts so much there are no more belt holes left.

Local governments funding slashed
Many of the local municipal governments are weathering the storm of this recession because they were prudent with their budgets to begin with.

Cutting expenses to the bone
In 2005 the city had 513 employees, today it is down to 425. Story notes, “We now have forty fewer full time employees than they had eighteen months ago and we’re seventeen percent smaller than we were five years ago.”

Government mandates, insurance costs strangle locals
Many local government officials look at unfunded mandates as another burr under the saddle of local municipal governments.

“No one wants to pay taxes but everyone wants service,” she said.

For the Complete Story, see this week’s Middle Tyger Times, page 7A.

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