County Poised to Pass "NO NEW TAXES" Budget

The Sumner County Commission passed a budget recently and that budget does NOT include new taxes. Here's more from Gallatin News:

Sumner County Commissioners are scheduled to vote on a combined county government and school system budget for the 2020-21 fiscal year next week, which does not include a property tax increase for residents.

The approximately $355.5 million combined spending plans were approved by the county’s budget committee on June 15. A vote by the full commission is set for June 29.

Unlike in previous years, Sumner County Budget Committee Chairman Chris Taylor said that county departments and elected officials were told this year that additional funding would be limited due to the negative economic impact the pandemic has had locally.

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The Case for Raising Teacher Pay

As the Sumner County Commission prepares to consider a proposal to raise teacher pay and fund other key items - a move which would require a tax increase -- this graphic explains why the school system is making a push to raise pay.

To put it simply: Our stating pay is significantly lower than nearby counties and our teachers face a $3000-$4000 pay deficit compared to peer districts over their careers.


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Budget Committee Recommends New Tax Rate

The Budget Committee of the Sumner County Commission met last night (August 12th) and recommended a new tax rate be adopted by the full County Commission.

The new rate would be $2.262 if the full Commission votes in favor of the recommendation.

The state-adjusted "revenue neutral" rate is $1.93.

The proposed rate includes a 15-cent adjustment for inflation since the last tax increase in 2014.

Additionally, around 12 cents would pay for a $4000 raise for every teacher in Sumner County.

Other needs funded by the proposed increase include road improvements, a new facility for the jail, a parking garage in Gallatin, and adding SROs to every school in the county (15 new hires).

Even with the proposed new rate, Sumner County would have one of the lowest tax rates in middle Tennessee.

At $2.26, Sumner's rate would be only slightly higher than Rutherford County, and significantly lower than Wilson, Davidson, Cheatham, Montgomery, and Robertson.

According to Zillow, the average sale price of homes in Sumner County is around $260,000.

Based on those values, the new tax rate would mean $216 more per year for the average taxpayer, or just about $18 a month.

The County Commission will meet at 7:00 PM on Monday, August 19th at the County Commission Chambers in Gallatin to consider the new rate.

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Taxing Hypocrisy

County Commissioner Merrol Hyde likes to tell the public that he's against higher taxes. He says that schools and other departments can get along just fine without additional county revenue, they just need to manage their budgets better.

Of course, this is coming from the former County Commission Chairman who presided over one of the worst examples of "borrow and spend" economics in Sumner County history. Rather than raise revenue or budget conservatively, the Commission under Hyde simply raided reserve funds time and again to the point where Sumner County was on the verge of financial insolvency until the current Commission righted the ship.

Hyde has conveniently forgotten the reckless spending of his past, however, and now claims to be a champion of the taxpayers. And by champion, he means the guy who would never, ever raise taxes, no matter how great the cause.

Hyde probably doesn't think too many people remember the not-so-distant past. But, a perusal of County Commission minutes reveals that on 7 occasions on a single night, County Commissioner Merrol Hyde voted for a tax increase.

On August 18th, 2003, the County Commission was faced with a Director of Schools who had presented a budget that required additional funds. Funds not generated by the current level of taxes. Other department heads made similar claims -- that they simply couldn't operate under existing revenue.

The Director of Sumner County Schools in August of 2003 was Merrol Hyde, who also happened to be serving on the County Commission at that time.

Hyde joined a group of Commissioners who pushed for, and ultimately won adoption of, a 45 cent increase in taxes.

On that night, Hyde voted for tax increases of 46 cents, 55 cents, 40 cents, 47 cents, 47 cents, 45 cents, and a final vote for the 45 cent increase that passed. 

It should be noted that each one of those votes would have taken the tax rate above the 2015 rate of $2.50.

Hyde now says the Director of Schools should work harder to trim the budget. But back when he was Director, he had no problem asking his County Commission buddies to raise taxes. He even supported the highest tax increase proposed, 55 cents.

So, in the first months after Hyde's failed leadership, tax rates are lower than rates he's approved of in the past, the era of bailouts has ended, and schools and county departments can move forward on sound footing. Oh, and Sumner County still has one of the lowest tax rates of any county in middle Tennessee.

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Anthony Holt, Taxes, and the Sumner County Budget

County Executive Anthony Holt points out in a recent article in the Hendersonville Standard that the previous County Commission committed to a host of expenditures before they left office ... leaving the new Commission with two choices: Cut budgeted expenses or raise revenue to cover the expenses.

Here's Holt's statement on the issue:

"The majority of these expenses were budgeted and committed to by our previous 'fiscally responsible' County Commission with no attempt made to increase revenue or make corresponding reductions in the county’s budget, leaving our newly elected Commissioners holding the bill."

Among the new expenses is a bailout of the insurance trust, already bailed out in 2013 because the Commission under previous leadership refused to charge adequate premiums or deposit sufficient funds to cover claims.

That Commission, under the leadership of Merrol Hyde, also spent nearly all of the $40 million of reserve funds on recurring expenses, effectively running deficit budgets with no plan to meet expenses.

The new Commission raised revenue in a way that responsibly invests in Sumner County, including supporting schools and other county needs.

The Unspoken Facts about Jim Vaughn's Facts

Over at the new Strong Schools blog there's a piece detailing point-by-point the issues raised by County Commissioner Jim Vaughn's recent article on taxes.

Here's that article:

In a recent article for the Hendersonville Standard, County Commissioner Jim Vaughn raised questions about the budget for our schools, specifically on the need for new investment in schools. Vaughn makes three claims I'd like to address. Vaughn's three claims are:  New investment in schools is not necessary, additional funds for personnel do not help students, and increasing support for schools will not result in improved test scores.

I'd like to begin by noting that Dr. Phillips and the School Board laid out budget plans starting July and in meetings in August. Jim Vaughn was not present at those meetings, even though they were open to the public. The budget was then voted on by the Education Committee of the Sumner County Commission on September 8th. The minutes of that meeting reflect that Vaughn was not present to raise the concerns he voiced on November 21 in a newspaper article. Finally, the School Board's budget was passed at the County Commission meeting of September 15th. At that meeting, Dr. Phillips took questions from Commissioners are the proposed expenditures. Jim Vaughn was not present at that meeting to ask questions, raise concerns, or vote against the budget. Now, more than two months after the budget passed, Jim Vaughn is complaining that he doesn't like parts of it. That's simply disingenuous.

Now, on to his first argument: Vaughn suggests we simply don't need new investment in schools. This is surprising as Vaughn represents the fastest-growing area in Sumner County. A tour of the schools in his district would demonstrate rapid growth.  In fact, over the past 10 years, Sumner County has added around 350 students per year -- or, the equivalent of an entire new elementary or middle school every two years. Part of the planned spending on schools is a 5 year plan to proactively address this rapid growth. It's a plan that maximizes existing space and efficiently spends funds. That is, rather than build a new school every two years, Sumner County will be taking advantage of and improving the facilities it has to manage growth.

Next, Vaughn expresses concern that hiring new teachers means that the School Board is prioritizing personnel over students. Pitting teachers against students is one of the most cynical approaches used by those who don't understand how schools work. Strong teachers impact the lives of students every single day. A growing system needs to have adequate staff to meet the needs of current and future students. The alternative would be larger class sizes and less individual attention. Supporting personnel in the schools directly benefits the students those schools serve. Moreover, the new school system budget includes funds to improve teacher pay and adjust staff pay. This means Sumner County can both attract strong new teachers and keep the great teachers we already have. That's a win for students and their families.

Finally, Vaughn wonders if investing in schools will have an impact on test scores. While that hypothetical proposition will only be answered in time, it is clear that those systems who consistently perform at high levels also invest significantly in their schools. Of the 10 systems that have the highest 3-year ACT average, 9 of them spend more per student than Sumner County. On average, those systems spend $1500 more per student than our system. That is to say, at the very least, there's a correlation between investment in schools and results in terms of student achievement.

I regret that Commissioner Vaughn missed opportunities in September to more fully engage in the school budget process. I hope that going forward, he'll engage with the School Board, his fellow County Commissioners, and the parents and teachers in his district in order to gain a better understanding of the needs of our schools.

Where's Jim?

Where's Jim? That's the question citizens in the 6th County Commission district are likely asking about County Commissioner Jim Vaughn following his recent column in the Hendersonville Standard.

In the column, Vaughn suggests the recently adopted tax rate came as a surprise to him. He further notes that he doesn't understand why the schools need more money and that it's not clear to him Sumner County faced financial disaster if something wasn't changed.

Vaughn might be surpised about the budget and tax issues because meeting minutes from the September 2nd meeting where Commissioners were sworn-in and assigned to committees reflect that Vaughn wasn't present that night.

Minutes from the September 8th meeting where the School Board's budget was voted on by the Education Committee indicate that Vaughn didn't bother showing up for that one, either. And, on September 15th, when County Commissioners voted on the budget for schools, Jim Vaughn wasn't present.

Voters elected Jim Vaughn to serve them by attending meetings, asking questions, and being a part of the process. But it looks like he took most of September off. No word yet on whether Vaughn will return his monthly stipend for September to the General Fund.

Vaughn did show up to the October 20th County Commission meeting. But his November 21st article suggests he wasn't aware of what was going to be discussed at a November 3rd County Commission meeting.

Vaughn says he was surprised a tax increase was being discussed in spite of public notice published on the County Commission website and in the Hendersonville Star News and Gallatin News Examiner on both October 22nd and October 31st. The notice stated clearly the "intent to exceed the certified tax rate."

Further, as a County Commissioner, Vaughn would have received a meeting packet and agenda. So, sometime in the two weeks between when he should have known what was on the agenda and the night of the meeting, Vaughn could have talked to Finance Director David Lawing and found out more about what was going to be recommended.

Finally, Vaughn asserts that the county was well-managed in the past. This must mean he suffers from the same faulty memory currently afflicting fellow Commissioner Merrol Hyde. Vaughn previously served on the budget committee. He was a part of the group that consistently recommended deficit budgets made whole through spending of reserve funds. It was Vaughn who helped craft a taxpayer-funded bailout of the county's failed insurance trust.

As County Commissioner Chris Taylor made clear in an analysis of the budget situation, before the vote to raise taxes, Sumner County was on the verge of financial collapse as early as July, 2015. This because previous leaders, Vaughn among them, steered the ship wrecklessly in the name of never raising taxes.

Now, taxpayers in District 6 are left to wonder: Is Jim Vaughn doing his job? He's not showing up to meetings, he's not paying attention to meeting notices, and he's not taking responsibility for his past failed leadership.

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Sumner County Tax Rate Comparison

In light of the recently adjusted Sumner County tax rate, here's a comparison of Sumner County's rate of $2.50 per $100 of assessed value relative to other counties in Middle Tennessee:

Sumner:             $2.50

Cheatham:         $2.78

Montgomery:    $3.14

Robertson:        $2.96

Rutherford:       $2.56

Wilson:             $2.57

County Commission Sets Tax Rate

The Sumner County Commission met Monday night and set the new tax rate at $2.50. That's a 42 cent increase over the rate set after the recent appraisal process. The new rate will mean a cost of about $10-13 a month for the average Sumner County homeowner.

The increase was approved after a presentation from Sumner County Finance Director David Lawing made a presentation noting that if there was no new revenue, the county would essentially be out of money by July 1st.

Here's Lawing's presentation.

After years of passing deficit budgets and funding them with reserve funds under the previous Commission leadership, the county ran out of options. The new rate will allow for management of growth in the county, provide funds to improve existing school facilities (significantly reducing reliance on portable classrooms), and shore up the county's finances so a dire situation like this year's can be avoided in the future.

The increase is the first passed in 11 years. The new rate is among the lowest in middle Tennessee and still, in raw dollars, lower than the rate in 1997.

SPECIAL CALLED County Commission Meeting

The Sumner County Commission will meet on Monday, June 30th in Special Sessions of the Education Committee, the Budget Committee, and the full County Commission.

The Education Committee begins at 5:30, Budget at 6:00 PM, and full commission at 7:00 PM. 

The meetings include discussion of continuation budgets for the Sumner County Schools and other departments as well as discussion of setting the certified tax rate for 2014.

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