A few weeks ago, I wrote an article about property taxes and quoted author Adora Svitak who said, “The first thing anyone can do about any issue is get informed.” I chose this quote for two reasons: Property tax is the most criticized and misunderstood source of local government revenue, and in the past ten years, I’ve seen very little public participation during the budget process. I can only speak to the City of Russell’s process, which begins in April and ends in August. April begins with a look back at how we’ve performed in the past, where we can improve, and begin discussing priorities for the next year’s budget. Then we begin reviewing and discussing different budget segments at each meeting, which concludes in August with the final budget recommendations. You can attend in person or virtually, or you are welcome to come to the city building and discuss the budget proposals. Remember, you can access the city council agenda and all supporting documents the week before the meeting by visiting the city website at www.russellcity.org
Property taxes are an issue and challenge to many folks in our community, and my parents taught me a long time ago to stay informed and provide solutions. I have a solution that may help with property taxes. The solution is not a novel idea or a stroke of genius; rather, it is part of an agreement between the state and local governments. The agreements involved the loss of local revenue sources in exchange for establishing the Local Ad Valorem Property Tax Reduction fund (LAVTR), County City Revenue Sharing (CCRS), and Special City-County Highway fund (SCCHF). Revenue sharing in this manner dates back to the 1930s, with the current LAVTR statutory framework established in 1965 and the CCRS established in 1978.
According to the December 2022 issue of the Kansas Government Journal, cities and counties in Kansas have lost at least $3,470,603,394 as the result of the State’s decision not to fund demand transfers. Some state officials refer to the LAVTR, CCRS, and SCCHF as “state aid,” yet the history of these funds does not support that classification. (more…)