Richland, Lexington County Council Chairmen: Legislature needs to stop shortchanging counties

Nearly 25 years ago, state lawmakers passed legislation that acknowledged their shared responsibility to deliver essential services and functions to our residents. That partnership is in jeopardy by actions on the state level to cut appropriations to the local government fund.

Each year, the state sets aside money into this fund to distribute to counties and cities on a formula basis.

The funds assist in covering some of the costs counties incur providing state-mandated services to their residents and maintaining office space for state agencies — from administering elections to housing local offices of the state departments of Social Services, Health and Environmental Control, Probation, Parole and Pardon Services and Juvenile Justice. The funding also serves as a form of tax relief to ease the burden on property owners.

But the funding level of the local government fund has been frozen for several years while the cost of administering essential services continues to rise. In addition, legislation passed by the House would permanently reduce this funding, shifting the burden to local taxpayers.

One thing is for certain: Reductions in the local government fund cannot be covered through property taxes because of the limitations imposed on local governments by Act 388, which was passed by the Legislature in 2006. Act 388 places stringent limitations on millage increases by limiting these increases to the Consumer Price Index plus population growth. Raising taxes to cover this shortfall is not an option that state officials should expect local government to consider because of the millage cap. In fact, since 2012 there has been no increase to the local government fund even though the state’s general fund has increased. Legislators themselves have agreed that Act 388 has had unintended consequences.

Like many officials in other counties, leaders in Richland and Lexington counties are speaking with their state legislators to remind them of our partnership in providing essential, necessary services to our taxpayers.

In nearly seven years, Richland County has received $23 million and Lexington County has received $15 million less in allocations than required under state law. Since 2009, other counties have endured similar shortfalls each year the local government fund appropriation has been reduced.

Simply put: The cost of providing state-mandated services is outstripping the ability of taxpayers — including those in Richland and Lexington counties — to cover the state’s shortfall.

Faced with the prospect of continued dwindling state aid, counties have limited options: raising taxes, cutting services and programs or shifting local priorities. With either option, local residents will pay the cost of the state’s decision.

As Richland and Lexington counties begin their budget season, hard decisions will have to be made. County department heads are seeking ways to hold down costs while still meeting the needs of residents.

Meanwhile, we are meeting with our delegation leaders to remind them of the burden that has been passed down to county governments. We are asking our state legislators to oppose the House Bill 3374, which rewrites the local government fund formula and does not increase it for the next two fiscal years, even though the cost of the state-mandated services will continue to rise.

Instead, we are urging lawmakers to support Senate Bill 473, which would restore full funding to the fund over a three-year period. This legislation ensures the state honors the commitment it made to local taxpayers some 25 years ago.

The local government fund is essential to ensuring that we can maintain our residents’ quality of life. One thing should always be kept in mind: The services counties provide are not luxuries; they are necessities. Without the proper levels of state funding, providing these essential services will be a burden that counties will find increasingly more difficult to bear.

This story was originally published April 27, 2015 at 1:00 AM with the headline "Richland, Lexington County Council Chairmen: Legislature needs to stop shortchanging counties."