First the stuff we all know: Of Minnesota’s 87 counties, Cook County is the second-largest county in the state with over three-thousand-plus square miles. If we skip a county over– to our neighbors to the west–St. Louis County holds the record for the largest land area in the state; double that of Cook County with over six thousand square miles.
Significant is the fact that of Cook County’s over three-thousand plus square miles, only 9 percent is privately owned, leaving a gargantuan 91 percent of Cook County’s landholdings owned by government!
While this has its advantages, it also has its disadvantages.
Because local governments are largely financed by property or sales taxes, this inability to tax the property values or products derived from government land has a negative impact on local tax bases – like ours. (See April 8, 2017 issue of News-Herald)
St. Louis County’s population, on the other hand, sixth-largest in the state, is 40 times more than Cook County’s roughly five thousand inhabitants, fifth-least populous Minnesota county.
In nearly a decade, since 2011, Cook County’s population growth has remained stagnant.
Another way to understand this is to say St. Louis County has approximately 10 times the number of inhabitants per square mile, as does Cook County. Very simply, more people to share the cost of government.
Ever since the Minnesota Center for Fiscal Excellence (MCFE) began comparing–in 2012–how local governments’ fiscal footprints differ across the state, Cook County has held the dubious distinction of having the highest cost of government per person, compared to the 86 other counties within the state. (See February 11, 2017 issue of News-Herald)
Let me ask you, “Do you think the per person cost of government in Cook County has disproportionately gone up or down in recent years?”
What factors affect this “cost of government” number? In other words, a county’s ability to generate revenue compared to the amount of money it chooses to spend?
Let’s look at a few of these factors:
Taxable and non-taxable business entities
The more land on the tax rolls, the more revenue generated from property taxes.
We’ve already touched on the amount of non-taxable government land within the county. Have you considered how many property tax revenue-generating properties have transitioned to non-taxable (nonprofit) entities in Cook County in the last 10 years? The trend continues unabated.
Unfunded Mandates
An unfunded mandate is a statute or regulation that requires a state or local government to perform certain actions, with no money provided for fulfilling the requirements.
While local governments do not always disagree with the spirit of the mandate, they often object to the high costs they must bear to carry out the objectives.
During a 2016 National Conference of State Legislatures’ Legislative Summit held in Chicago, the topic of “The Federal Regulatory Burden” was discussed. A standing committee on budgets and revenue asserted the following:
“The growth of federal mandates and other costs that the federal government imposes on states and localities is one of the most serious fiscal issues confronting state and local government officials.”
Increased Discretionary or Non-Mandated Spending
It should be made clear, nonprofits do not fall under the umbrella of county government and are separate organizations tasked with their own fundraising. The duty to raise funds for nonprofits lies with the nonprofit boards and volunteers, not county government.
I would often ask commissioners from other counties if they contributed tax dollars to nonprofit entities? Their response: “No, we had to give that up years ago. It was a matter of priorities.”
Lack of Fiscal Discipline
For anyone who is paying attention, there appears to exist, within the mindset of local governing officials, an insatiable appetite for wanting more! Very simply, an unwillingness to say “No” to increased spending.
Expanding the tax base shouldn’t be understood as synonymous with “increasing taxes.” On the contrary, expanding the tax base is about creating more assets on the tax rolls to spread the cost of operations across more entities.
When a tax base expands, it means that businesses and members within the community share in the costs associated with running the community. The larger the tax base grows, the smaller the individual’s share of the tax burden becomes.
The opposite is also true. When a tax base shrinks, and spending doesn’t follow suit, the larger the individual’s share of the tax burden becomes, taking more money out of the pockets of community residents and business owners.
Under present “leadership,” Cook County taxpayers are, lamentably, living this ever-increasing tax burden.
Former Cook County Commissioner Garry Gamble is writing this ongoing column about the various ways government works, as well as other topics. At times the column is editorial in nature.
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