NC Media Watch

A quest for reason and accuracy in letters to the editor, guest editorials and other issues of interest to the citizens of Western Nevada County.

Friday, June 17, 2005

Digging for details in "not much new"

Becky Trout writes, "Budgets set for county and cities," Not much new, but entities able to hold their own, June 17, 2005

Well, I have to disagree about “Not much new.” It is just that Becky did not dig for the details. Note the county is in good financial condition relative to other Counties, due to “strong property tax revenue.” Would the County have that tax revenue if we did not have a strong construction segment in our economy, if we did not have a strong demand for houses, that resulted in brisk home sales with property taxes increasing every time a home is sold? Think about it, where would the County be if our economy was slumping, home sales were slow, few new home were being built. If the construction segment of the economy was in the tank, the County budget would be also. An indicator, we should not over regulate our construction industry and put it in the tank.

Again digging for details, we find that Nevada City increased Economic Resource Council funding by 33 percent, Grass Valley by 39 percent, and the County by 35 percent. Yes, local governments increased ERC funding by a third over past years, sounds like news to me.

While these were just one year increases, it clearly demonstrates that local government leaders understand the need to invest in economic development when the economy is growing, thus ensuring tax revenues continue to grow.

As I pointed out above, it was a growing economy that “provided strong property tax revenue.” It was the combined effort of the Chamber of Commerce, the Downtown Association and the ERC, that helped Grass Valley to produce enough sales taxes revenues to provide a comfortable increase in economic development funding. If sales tax revenues were down, would the City Council have provided the extra funding? Not likely.

Yep, “not much new” on the surface, but it gets more interesting when you look at the details.

Perhaps the most important over looked detail was the strong leadership shown by the City Councils and the Board of Supervisors in supporting economic development. Good job team!

If you have a comment click here.

UPDATE: Typing errors fixed at 12:30pm, thanks Julie.

UPDATE: Becky Trout: "everything you noted in your blog I wrote about"


Post a Comment

<< Home