Supervisors struggle to set tax rate

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Prince William County (Map, News) - The Prince William County Board of Supervisors faces a third chance Tuesday to set a property tax rate, but supervisors remain divided over how much to raise it.

The latest chance to override a long-running stalemate arrives as supervisors remain split on how to pay for an expensive array of new initiatives, including illegal-immigration enforcement, amid dropping property values.

Instead of approving a tax rate increase that gives supervisors a cushion to work to lower taxes later, the members are trying to use a preliminary vote to set the tone for budget negotiations.

County Executive Craig Gerhart's $924 million budget includes an increase of 28 percent that would raise the average residential property owner's bill 8 percent, or $258, on a home worth $344,000.

Some supervisors said that increase is not big enough to cover the county schools' needs, while others said the increase is too much for residents to bear during a slowing economy.

"I just have a lot of heartburn about adding to the tax burn of citizens right now," Board Chairman Corey Stewart said.

Supervisors on both sides of the debate want to expand the police and firefighter ranks, build a new high school and raise teacher salaries, but they differ starkly over how high to set the tax rate.

Some supervisors, including Supervisor Maureen Caddigan, R-Dumfries, say it will be impossible to fully fund the county's new illegal-immigration policy at the 23 percent tax rate increase that Stewart favors, which would raise the average tax bill 3 percent, or $107.

"We haven't set a tax rate yet," Caddigan said, suggesting Stewart has not done enough to compromise. "That's lack of leadership."

Supervisors said they are working behind the scenes to broker a deal, but Stewart said there is a limit to his willingness to compromise.

"I'd like her to understand that it's just irresponsible to be increasing taxes at a time when we are probably heading into a recession," said Stewart, who is running for lieutenant governor in 2009.

Another complication is that the budget picture is not yet stable. Residential property assessments expected to fall 16 percent among a foreclosure crisis were finalized Wednesday, but Finance Director Chris Martino said he has not been able to determine how they will affect the budget.

"I think it's a little less bad than we thought," Martino said, adding that other tax revenue may be worse than projected.

Schedule of a stalemate

Feb. 26 Budget proposed

March. 4 Four failed tax votes

March 11 Tax discussion postponed

March 18 Third tax vote slated

dgenz@dcexaminer.com

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