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Taxpayers better be prepared for the pinch

Word this week that Ward County and Minot will be looking to property taxes to fund about $601,000 of an emergency 911 system that phone taxes aren’t expected to cover should come as little surprise to taxpayers paying attention to what is happening at all levels of government. Furthermore, every resident should prepare for more such news.

Most people are aware of state budget cuts and the required spending constraints. It isn’t just at the state level. The economic slowdown in the oil patch, challenged commodities market and global economic factors are all depressing revenue collection.

Yet, there is no slowdown in the need, even demand for services. This includes big ticket items for Minot such as flood protection. That enhanced snow removal capacity some have called for in Minot? There would be a price tag attached to that as well. And so on. Additionally, the everyday services provided by municipal government don’t get any cheaper, and certainly not just because revenue is down.

Some might monitor property taxes as a sole indicator of one’s civic contribution. However, make no mistake, whatever happens with property taxes (which is already scaring some), government will continue to identify funding for the services it provides. It might take the form of new and reallocated taxes and taking on additional debt. It might also manifest in increased fees and special assessments.

Simple free market economics drives the situation. Demand for services is steady or increases, market cost to deliver those services only gets higher, revenue is considerably lower from the primary source, so resources have to come from somewhere. North Dakota is routinely feted in the media for its lack of waste (at least relative to other states), and neither Ward County nor the City of Minot has a budget that is particularly fatty. This is not a situation in which spending cuts can solve the problem, at least not without dramatic change in the relationship between government and taxpayers.

Additional needed taxes for our emergency 911 system? Taxpayers should prepare for other, similar situations in the months and years ahead. It appears inevitable.

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