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What Happened ?

Many people are aghast that in Walton County, employees are be laid off, library hours trimmed, and support for recreation reduced. It's all in response to sharply falling property tax revenues. But what is seldom talked about is this: The problems didn't start when the economy turned sour. Spending went up too far, too fast in real estate boom times, and government created programs and policies that are no longer sustainable. In other words, our current woes have their roots as much in the good times of the housing bubble as in the current bad ones. County government as we have known it will be changed forever. When times were good, governments spent far more than what was needed to maintain a steady growth.

In fact, Walton County went on a fantastic spending bender during the past decade. As property values crested, they rode the wave of soaring tax revenues, building new parks and paving roads at a furious clip. And they raised pay for their employees. After all, the cash was coming in. Like many in the public, our County Commissioners gambled that property values could only go up. They were wrong. Now the hangover has set in.

A review of the Walton County Commission audits paint a sobering picture. They show that from 2000 to 2006, Walton County Commissioners went on a spending spree.

Walton County government spending grew at more than twice the rate of population and inflation.

County Commissioners will tell you they have simply responded to their residents' wants and needs. There's some truth to this.

For years, low taxes that lured retirees and the rush toward coastal communities from other states resulted in massive backlogs in road building and other infrastructure. Walton County was doing some catching up as Florida's real estate market caught fire. 

All those accounted for a good chunk of the spending spike. And when the good times ended, there isn’t enough revenue to sustain the programs and people added during the good times.

A Walton County Taxpayers Association examination of the BCC audits show that Walton County spent the early part of the decade taking care of their own. Salaries ballooned at clips of more than 7 percent annually. Benefits were enhanced. Walton County government increased spending during the peak years by double-digit percentages.

Did elected officials decide to do this out of the blue? The answer is no. I sat through many meetings where people said, 'We want this and we need that.' Our Commission responded – the money was flowing !

It's hard to be an elected official right now because you have to say, 'no'. The question is, when it turns around, and it will turn around, will they be able to say no ?

Yes, elected officials will need to learn how to say no when the economy recovers. For Walton County has a history of boom and bust cycles.

But government leaders also should be asking big-picture questions about what they do and how they do it. It's a good time for introspection.

Instead, many are taking a narrow approach to shoring up budgets.

A good place to start might be a wholesale examination of pay and benefits for employees, since they represent governments' biggest expense.

It used to be that people entered the government workforce as a form of service, knowing they would get paid less than they could in the private sector. In return, they enjoyed job security and great health and retirement benefits.

Today, government salaries are often higher than those with private business. And workers still get close to free health insurance and guaranteed pensions, rarities in the business world.

We suggest our elected officials remember how to “Just Say No”.

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Homeowner's Property Tax Reduction Kit Arms You Against Bad Assessments

Feel in your gut that you're paying too much property tax?

Add the Homeowner's Property Tax Reduction Kit  to your reading list.

The 86-page guide from the American Homeowner's Association helps you look for common assessment errors, and compiles state-by-state tips on laws and appeal procedures.

Download Guide

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