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state-generated revenues. New taxing authority for counties should not be viewed as a catalyst for 71
<br />shifting costs from the state to counties. This avoids undue burden on counties and provides for
<br />even funding of mandated programs across the state.
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<br />redistribution of new tax sources should be implemented without taking into account taxpayer
<br />equity as reflected by local needs, local funding efforts, and local funding capability.
<br />There may be circumstances in which broad statewide policy objectives necessitate reductions in
<br />the tax bases of local governments. In such cases, the General Assembly should provide counties
<br />and cities with reimbursements from state sources which replace the actual loss in each county on a
<br />dollar-for-dollar basis.
<br />Any ep~~ revenue authority for counties should be employed to produce unrestricted
<br />revenue under the control of county commissioners and municipal officials. Local government tax
<br />revenues should not be earmarked for specific programs, functions, or services.
<br />Optional tax sources should be evaluated by state and local officials in terms of their impact on
<br />various groups of taxpayers, taking into consideration ability to pay, wealth, and benefit in older to
<br />avoid overburdening any particular group of taxpayers.
<br />Fiscal Integrity of Counties
<br />The continued fiscal health of county government depends upon:
<br />• State laws and guidance which provide for sound financial management practices that are adaptable
<br />to the special needs of each county.
<br />• Guidance from appropriate state agencies on necessary improvements in consistent accounting,
<br />reporting and auditing procedures.
<br />• Recognition by state agencies which oversee programs operated by county governments that there
<br />have been significant improvements in budgeting and fiscal management practices at the county
<br />levels and elimination of pressure from state agencies on counties to carry out practices which are
<br />redundant, duplicative, or inconsistent with generally accepted principles of budgeting and
<br />accounting.
<br />• Timely information from the Legislative and Executive Branches of state government regarding
<br />budgetary decisions which affect taxation, budgeting, and fiscal management by counties. In order
<br />to enhance the fiscal integrity of counties, the Association of County Commissioners will continue
<br />to support improvements in financial management practices and reduction of inconsistencies in
<br />fiscal procedures among programs administered by county governments.
<br />Financing Public Facilities
<br />County governments have the primary responsibility for financing a range of public facilities which include:
<br />public schools, local jails, court buildings and county administrative buildings. Historically, counties have
<br />utilized the public bond market as the main source of long-term financing for such facilities. Recent changes
<br />in Federal tax laws which will affect the municipal bond market, along with the use of new facilities
<br />financing techniques in other states, necessitate consideration of broader financing authority for counties.
<br />Accordingly, the Association will work with the Local Government Commission to find suitable alternative
<br />means of financing necessary public facilities. The Association believes that revisions in the traditional
<br />approach to long-term financing of public facilities should offer financially feasible ways of providing
<br />multi-year financing of capital projects without jeopardizing fiscal well-being of county governments.
<br />As of 9/94
<br />IJsharedkd/PolicyStaternent on Taxation and Fnance Proposed Ganges
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