County Budget Season

July 2024 | Eric Jennings, Lawrence County Commissioner Opinion Editorial, Black Hills Pioneer

It is budget time once again for Lawrence County.  Actually, the budget process started sometime ago for the department heads who had to have their proposed budgets to the Auditor by mid-June.  This is to allow time for the Auditor to compile the complete budget proposal, all 147 pages of it, for the County Commissioners to work on it throughout July and August.  A provisional budget will be approved prior to the public hearing which is currently scheduled for the first meeting in September to receive public comment.  Considering our fiscal year follows the calendar year, it seems early for approving the budget.  We need to follow this schedule in order to have the budget completed by October 1^st so that your property taxes can be assigned the appropriate mill levy for the tax notices that go out on November 1.  

Some may think the commissioners just decide how much we want to spend and then tax accordingly.  The Commissioners all recognize the financial strain property owners are experiencing from property taxes.  For this reason, we try to be conservative in our budgeting while maintaining safe living conditions and an efficient county government.  It is also important to note that, by the tax freeze law passed in 1997, we are only allowed to increase total property taxes collected by the current consumer price index (CPI) rating plus the growth in valuation.  CPI is an inflation factor, which as we have all experienced, has made a significant impact to the county’s budget.  The South Dakota Department of Revenue sets the CPI to be used by all local governments.  Even though the current inflation rate may be exceeding this, the CPI is capped at a maximum of 3%.   Valuation growth is created by new construction and is not included in the tax freeze legislation.  You may have experienced your personal property taxes increased by more than the 3% CPI allowed by law.  The CPI plus growth figure the county is required to follow refers to the total property tax collected.  Within the total there are shifts in the property tax burden between residential, commercial and agricultural property.  So, while you may have seen an increase, another property type may have seen a decrease.  I know that doesn’t make it any easier to swallow, but that is the way our current system works.  

While property tax is an important revenue source for the county, it does not fully fund the county.  Fees collected by the county make up a surprising percentage of the total revenue.  Everything from marriage licenses to pistol permits to off road vehicle stickers to deed transfers to building permits and many more, all help fund the county.   The county jail actually helps fund the county too.  As extra space is available in the jail, Lawrence County houses federal prisoners.  The county is compensated for that service and will be able to house more when the Public Safety and Services Center is completed this fall.     

Few people enjoy paying taxes, but most of us appreciate the services they fund.  As with most county business, the budgeting process is open to the public.  This process is your opportunity to provide input on how your tax dollars are spent.