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Affects of Real Property Tax 3% Limitation on County Budgets
To learn how the Measure 50 limitation of 3% annual increase in property tax assessments is affecting Oregon counties, I called the financial officers of both Jackson and Josephine counties. County real property tax income is composed of revenue received from both existing properties and new construction. When added together the property tax revenues for Jackson County increase 5% annually, and for Josephine County 6% annually.
The counties provided me with the following examples of cost increases that must be absorbed by the county budgets.
From Jackson County Assistant County Administrator:
- Asphalt costs - up 32%
- Gasoline costs - up 14%
- Health insurance costs for Jackson County’s largest union have gone up 11.12%
- (average annual increase over the last 6 years.)
- Health insurance costs for Managers have gone up 9.87%
- (average annual increase over the last 7 years, even though benefits have been reduced almost every year.)
From the Josephine County Public Works Director:
- Gas and diesel prices have more than doubled in just over 3 years.
- The county went from paying $1.50/gal in early 2004, to $3.00+/gal now.
- Figuring this against last year’s county wide usage of 200,000 gallons just to operate the county fleet and Public Works Fleet, Josephine County lost $300,000 purchasing power.
- Josephine County's primary treatment to preserve road surfaces is chipsealing. In the last 3 years, Seal Oil has gone from $200/ton to $310/Ton.
- Concrete and steel prices have gone up by almost 40% in the last 2 years.
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