Unlike those from a similar survey last year when federal budget reductions were more certain, results from a just-released NACo survey show that, overall, counties do not plan to raise taxes in 1997 despite the uncertainty that is marking the federal budget process. Last year, 25 percent expected to raise taxes. This year, the figure dropped to nine percent.
|
Responses |
Yes |
No |
Don’t Know |
No Response |
|
Raise taxes |
9.2% |
66.9% |
22.5% |
1.4% |
|
Reduce services |
32.4% |
27.5% |
38.7% |
1.4% |
|
Reduce county staff |
27.5% |
33.8% |
36.6% |
2.1% |
|
Freeze hiring |
31.7% |
32.4% |
31.7% |
4.2% |
|
Postpone capital projects |
36.6% |
34.5% |
24.6% |
4.2% |
|
Contract out to private providers |
23.2% |
26.8% |
45.1% |
4.9% |
NACo’s most recent survey asked counties if uncertainty about the flow of federal funds is prompting them to reduce staff or services, postpone projects, or raise taxes.
On average, 28 percent of counties reported that they would take some action in these areas, with most favoring a reduction in services or postponement of capital projects.
On the other hand, more than a third of the respondents (37%), on average, claimed they do not plan to pursue one or more of the options, with the strongest negatives going to raising taxes (66.9% opposed that option), postponing capital projects (34.5%), or reducing staff (33.8%).
Perhaps just as telling are the uncertain responses. On average, a third (33.2%) of the respondents said they did not know whether they would take some of the options listed.
Respondents were clear about one thing — they expect less money from their state governments than last year. Combined with those who believe they will receive about the same amount of funding, counties believe overwhelmingly (82.7%) that state aid will remain flat or fall.
Given flat or reduced state assistance, the survey asked counties to identify which programs, out of a field of 12, they expected would need additional local funding to make up for state pullbacks. They identified summer youth job programs (21.1%), welfare/social services (18.3%), and Medicaid/health care (15.6%) as the programs most likely to need supplemental county funding.
Other programs expected to need more local funds included jails (9.9%), transportation programs (9.4%), job training for adults/youth (7.5%), economic development/CDBG (7.5%), housing (4.8%), waste management (4.6%), rural water and sewer (3.8%), Low Income Home Energy Assistance Program (3.5%), and other (3%).
Results of the survey were released to the general public at a news conference, March 1. For a complete copy of the survey report, contact: Traci Dove, at NACo, 202/942-4270.
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