Why State Policy Matters November 11, 2016 Michael Cassidy, President & CEO The Commonwealth Institute for Fiscal Analysis

Our State Budget: Choices for our Future

Education

Transportation

Libraries, Parks, and Recreation

Public Safety

Clean Air, Safe Drinking Water

Prisons and Courts

Health Care and Public Health

Human Services

Public Investment Has Fallen

K-12 Schools Are Still Down

College Students Face Higher Costs = We all know about rising tuition and fees at public colleges and universities. What we sometimes forget is that every Virginia college and university has faced significant cuts since 2008 in state funding per student after adjusting for inflation. As the state has reduced its role, students and their families are facing a higher share of the costs of getting a higher education.

Why the State Matters Discuss how Virginia counties are best considered agencies of the state government, using example of needing to go to general assembly for grass cutting ordinances

Limits on Local Taxing Authority Type of Tax Allowed in Virginia cities and counties? Cap for cities? Cap for counties? Real Property Yes None Personal Property General Sales 1% BPOL gross receipts Varies Restaurant Meals Limited for counties none 4% Public Service Corporation Property local real estate rate Consumer Utility 20%, w/other caps Hotel and Motel Room 2% Other Individual income tax Not allowed Corporate income tax The state limits both the rates and types of taxes that Virginia cities and counties can levy, and places greater limits on counties than on cities.

Median Household Income Local Capacity Varies Median Household Income

State Policy Change Could Help Many

And Progress Can Be Made

Questions. michael@thecommonwealthinstitute. org www Questions? michael@thecommonwealthinstitute.org www.thecommonwealthinstitute.org 804-396-2051 Michael Cassidy, President & CEO The Commonwealth Institute for Fiscal Analysis