Thinking about County Government

Ersel Schuster

Ersel Schuster

Ersel Schuster, a woman who has served on the McHenry County Board for 14 years and is running in the Republican Primary and friends, have given quite a bit of thought about county government.

She presented their suggestions to the County Board.  I asked her to allow me to share them with readers.

The first installment follows:

MESSAGE:   The following opinions and suggestions are simply expressions of concern from residents, taxpayers, from all areas of McHenry County

Having responded to my call for McHenry County residents to express their concerns about taxes and government; after several months of conversations; the material following these opening statements was prepared.

The recommendations listed below were the most repeated concerns and suggestions.

And, after organizing these thoughts on paper, volunteers reviewed the documents prior to placing it in your hands.

As a side note; surfacing from these discussions was that nearly all expressed concern that they not be exposed for speaking up; there is a visceral fear of retaliation from your constituents.  That, in and if itself, is a message public officials need to seriously address.

While unwilling to step forward, publically stating why they have their individual issues with the county, just know that they are at a boiling point.

It is easy to make broad statements saying… “just reduce my taxes” and “get government out of my life.”  It is more difficult to know where, and how, to begin the process.

Simply avoiding another increase in the levy is more a political move than a true effort to reduce programs and services of government.

When nearly 3/4 of the cost of county government goes to salaries, retirement plans, and health benefits; it is a certainty that we are on a collision course in paying for county programs and services.

From "The Rational Male."

From “The Rational Male.”

Further exacerbating the labor issue is that current labor contracts have been approved with annual increases in the range of two million dollars.

These increases compound annually.

Is this sustainable?

We have a financial house-of-cards… and taxpayers do understand the inevitable results of this picture.

In our discussions, property values and property taxes were the leading cause for the anger expressed.

A repeated attitude expressed was that elected officials won’t do anything and that:  The “human” element will factor into any review process as deep emotional, personal, and financial ties to the program/service taint any efforts to make changes.

Added frustrations were expressed by suggesting that their representatives would simply excuse any effort for reducing government because they lack the courage to make any changes.

All too often it is easier for elected representatives to ignore difficult questions; defer to staff recommendations; succumb to “don’t rock the boat, just keep doing what we’ve been doing;” and disconnect from the truth that money spent by government is personal earnings, being converted to taxes and taken from people.

Surprisingly, the issue of “grants” came up regularly.

Those identifying this issue knew exactly what they were talking about and had strong feelings on the subject.

These observations often included the question… “Why don’t they understand that grants (whether state or federal), are monies they’ve already taken from us?”

ADDRESSING THE FOLLOWING OVERVIEWS AND RECOMMENDATIONS:Tax in bills

  • The following information is intended to lay the groundwork; beginning a conversation for real world reductions in the size and scope of McHenry County government.
  • Topics chosen for this work were the most repeated issues expressed by individual taxpayer’s.
  • Unless otherwise noted, text and information provided, as description for each department, or division of a department, have been taken from the 2015 McHenry County Board Approved Budget.
  • These suggested actions will require a great deal of effort on your part; your time and expertise will be challenged.  Your most difficult obstacle will be the trend to conclude that: “it has always been done this way;” “county must continue the program/service;” and, “only county government is capable of providing the service.”
  • As each issue is addressed… several initial questions should be answered.  The following examples are simply meant to begin such conversations:

1 – Identifying a program/service for review;
2 – Is this a program/service county government must do?;
3 – What is the history of the program/service:Tax House with bills flying

  • Did it begin as a mandate from state or federal government;
  • Was it the result of a grant;
  • Was it a “feel-good” effort to address some supposed problem;
  • Was this a program someone, or some group, lobbied to begin
  • Etc.
  • Identify the pros and cons of eliminating the program/service;

4 – What are the problems created if a program/service is eliminated;
5 – What are the benefits of eliminating the program/service;
6 – Once eliminated, competition from local government goes away, thus;
7 – Are there private sector providers who will pick up the program/service;
8 – Would eliminating the program/service encourage the private sector to step up to the provide the program/service;
9 – Can the program/service be phased out or simply eliminated;
10 – What will the total cost saving mean to taxpayers; this should include every facet of providing the program/service; everything from labor costs to structures.

OUTSIDE REVIEW:

  • By suggesting an “outside” review, it is important to recognize that “new eyes” need to look at individual county departments and divisions for individual program/service history, daily operations, and future plans.
  • In some cases, specific recommendations outline a “taskforce” make-up.  In other cases, it will be existing county board committees who must seriously take on the recommended task.  The goal must be addressed from a position of planning for elimination and not simply for gathering rationale to continue a program/service.
  • When a taskforce is suggested; the goal is to include people who will bring new, objective and fresh perspective to the task; it is suggested those with vested interests in the outcome of a task be excluded;  it is suggested those who have been regularly appointed to past committees be excluded; it is suggested that non-elected “taxpayers” view be brought to the table; it is suggested that private sector business be included to bring balance and offer suggestions for spinning off county services to private business; and it is suggested there should be limited staff involvement.
  • This discussion and the suggestions set the examples and rationale for looking at each topic that follows.

TO BE CONTINUED:         Example I next week.


Comments

Thinking about County Government — 17 Comments

  1. I’d be interested in knowing the make up of these constituents.

    How many you talked to, their ages, education level, incomes, ect.

    It would be helpful to know if they are representative of the county as a, whole.

  2. I think it’s a good idea to really cut the budget.

    They can’t do much about the union contracts and pensions so eliminate other services.

    Start with eliminating the health care and other stipends for county board members

  3. What the Board should start with is a maximum dollar figure it will confiscate from McHenry County residents in 2016 through real estate taxes and then say, here is the dollar figure now we must live with.

    This will force making the tough decisions which should have been made years ago. Need is based upon available funds and unfortunately residents have been electing County Board members for too many years who believe they have a blank check. That is why we are #29!

    This is what every family is doing in McHenry County in these difficult economic times, why not County government? The County already has 40 Million Dollars of tax revenue sitting in Valley Hi liquid account, a great place to begin. All McHenry County residents should see our McHenry County tax assessment reduced by at least 50% in 2016.

    You got the analysis backwards Ersel but your heart is in the right place.

  4. Ersel! You really frightened me by using the Agenda 21 buzzword “sustainable”.

    I couldn’t read past that.

  5. The fact that we are 29th indeed looks bad, the differences if you look at the nation wide property taxes aren’t much.

    With a .25% increase in some other gov agencies out side our county, ranking would increase allot.

    David is correct, we need to limit elected officials to what we are willing to give them.

    My rant which I’ve put here and in the NWH many times in the past:

    We need some government, how much will be debated till the end of the earth.

    As tax payers we must take away some of the power/decision making away from our elected officials, spending and setting tax rates.

    These two issues were a problem that were never addressed properly when the Constitution was written, but should have been, but the partisan nonsense started already way back then with over spending and borrowing to buy votes.

    Spending must always match actual revenue available at the time, ie what we are willing to give in the form of taxation.

    Borrowing should only be allowed for World Wars, not police actions like we’ve had since 1945.

    Even weather disasters should be budgeted for, they’re regular enough, and we should be able to budget for them to some degree.

    Individual Income tax rates and Property tax rates should not be roller coasters of ever changing rates that just leads to insecurity for the tax payer not knowing what is coming next from the elected to buy votes.

    The class warfare thing must be put in the grave; it’s just dividing the country more and could lead to more and more divisive actions in the future. We all need skin in the game, and it should be equal skin.

    I would propose we force our elected by Petition, which is allowed in the constitution, to enact a Balanced Budget Amendment that has the income tax rate and/or property tax rate control tied to it.

    The Congress, State, and Local gov agencies will only be allowed to adjust the income or property tax rates after a 2/3 approval vote within its legal boundary, ¾ vote would be better.

    Our choice with a strong majority vote behind changes, not the Pacs controlling the partisan as the wind blows hacks.

    I’d prefer a Flat income tax with no deductions at least till we start paying off the debt in a manner that has a time limit attached to it. Gov agencies that use Property taxes should have no levy power or equalizer, whatever the home value, up or down, the rate we voted on determines what is paid in taxes.

    Not enough as most elected seem to keep saying, then come to us with your yearly or two year budget recommendations and let us vote 2/3 for any change from the year before.

    No more passing on our debt to future generations should be allowed.

    We borrow almost 40% for the Fed Gov now that must stop ASAP.

    To not propel the economy into the dumpster any farther, we should demand freezing the spending at the 2014 rates or a small cost of living, every year till spending is lower than actual revenue.

    We can budget a pay back of the added debt which will be pushing 20T by then.

    Yawn.

    I listening for other suggestions, got one?

  6. It is factually inaccurate to state that property tax rate differentials are small increments.

    Property tax RATE differentials are HUGE increments when comparing this county to the rest of America.

    In Woodstock IL, the property tax rate is 5% of total fair market value. (15% of EAV).

    (Homestead exemption is $4,500 tax dollars; (.05 x 3($6000)). But half of Woodstock is now investor owned rentals after flood of foreclosures. Property taxes are passed through to renters–high rental prices in Woodstock are anomalous).

    Many communities in McH County have property tax rates above 3% and this is higher than national mean and median by significant amount.

    Property tax RATES are the normalized comparison measurement between municipalities, counties, States.

    Property tax RATES in McH County aren’t subjective or debatable, they are so high as to have induced a negative feedback loop of property value devastation in Woodstock.

    These property tax RATES of 4%-5% in Woodstock/unincorporated Woodstock are not offset by lower State income tax rates or sales tax rates.

    Even if Illinois tax rates (income&sales) WERE lower than national averages (they aren’t), few people spend the cost of a home annually on purchases subject to sales tax.

    Few people earn taxable income equal to the price of a home annually.

  7. Vague general platitudes about National Debt and academic observations about ‘how much government’ we need don’t mean much to seniors forced into losing homes at fire sale prices, due to property tax bills which are so high that most people think the senior has dementia when communicating the 5% tax rate.

    On the other side of the age spectrum, property tax rates of 5% take an additional 8% of median household income more than national averages reported by BLS consumer expenditure surveys.

    That extra 8% accounts for MORE than the average American household is ‘allowed’ to keep to save for retirement AND discretionary expenditures like funding children’s’ college educations or buying Christmas gifts.

    Those households don’t have the luxury of theoretical political meanderings. They are just screwed.

  8. Good Job, Nob!

    But in the spendtrhift world of do good McHenry politicians, the taxpayer is simply there to write out the check to finance their never ending “do good” expandng programs and financial give aways.

    It simply is easier for Board members to say “yes” than “no”!

    My plan to remain in my McHenry County home is no more; like many, I am devising an exist strategy from this County once my children complete high school.

    The problem with excessive real estate taxation is that you never own your home and cannot profit when you go to sell.

    As a result, we are all renters in McHenry County.

    This is one McHenry taxpayer who has seen and paid enough!

  9. If any candidate wants me to believe they are serious about cutting government perks and spending – they would champion eliminating the County Board PENSION, HEALTHCARE and MILEAGE REIMBURSEMENT.

    Until then- I am tired of hearing about “those programs” and “those programs.”

    Show some leadership.

    The self proclaimed tax fighters are also the leading voices in protecting and increasing their own perks.

    You are a public servant in a part time role.

    NO PENSION. NO HEALTHCARE. NO MILEAGE REIMBURSEMENT.

    Until then- I see you all as disingenuous.

  10. “If any candidate wants me to believe they are serious about cutting government perks and spending – they would champion eliminating the County Board PENSION, HEALTHCARE and MILEAGE REIMBURSEMENT.”

    That’s an easy position to take when the candidates you like have a rich father to subsidize their political dabbling.

  11. Being on the County Board (IF YOU DO IT RIGHT) is a full time job.

    No one would step up to do it if it didn’t offer benefits.

    The benefits don’t cost that much.

    We need to attract people to those positions.

    And I’m not a fan of most of them but if done right, it’s time consuming and a lot of thought has to go into decisions.

    We should worry about townships and county board members that are dirty.

    Not taking minimal benefits away.

  12. Susan, “theoretical political meanderings” Wow!.

    I gave a partial solution to stop ever growing taxes, what is your solutions?

    Just blowing off the extra steam perhaps?

  13. Local solutions.

    Local is somewhat under our control.

    10% annual expenditure cuts three years in a row by local taxing bodies, to catch up with where we should have been had we belt-tightened like everyone else back in the 2008- crash.

  14. Go thoughts, but we still lack control over all.

    My suggestion would take Constitution change of course.

    Nothing is easy, sad to say.

  15. While I conditionally agree with all the suggested overarching solutions, my foremost concern is that we cannot survive local profligacy long enough to be destroyed by national policy.

    The property tax rate in Woodstock is far above average for the County, and astoundingly above average for the nation.

    As I understand this post to read, the Board is being presented with a protocol for systematic examination of categorical individual expenditures, and a logic template for curing the problem areas.

    That is a great contribution in my opinion. I hope the Board will adopt this suggestion.

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