Hidalgo County Tax Increases and Pay Raises Not Justified
Hidalgo County Commissioners are recommending a tax rate increase of 4.17 percent for properties on the tax roll. Because of devaluation of properties they state that the average residence homestead in Hidalgo County will actually pay only about $13.00 more per year than at least years tax rate. (This assumes an average taxable homestead value of $79,114).
According to the Texas A&M Real Estate Center’s most current statistics the median family income of the McAllen area has actually gone down from 29,200 in 2002 to 27,700 in the last part of 2007 (last measure available). The median price of homes in the McAllen area has decreased by $20,000 in the past year to $101, 300. The affordability of homes which is a ratio of income over ability to qualify for a loan remains less than 1.0 for all home buyers including first time home buyers. It is true that the percentage of homes that are worth more 120,000 in McAllen is steadily increasing.
At the same time Hidalgo County Commissioners are asking for pay raises for themselves and county employees of 5% across the board. Comparisons with other counties show that for both county employees and elected officials some pay rates are higher and some lower than others.
I become concerned when elected officials try to call a tax rate increase a decrease because the lower end of homeowner’s homes have possibly been devalued. In addition the comparison of pay rates with other counties is only reasonable when one combines merits, efficiency, and level of responsibility of one office holder to another. Comparing just pay rates alone can be deceptive.
There is no doubt that Hidalgo County citizen’s incomes and home values are in a downward trend. At this point no one can say when that trend will reverse but for now it does not appear to be in the near future. Increasing taxes and increasing the pay to government employees across the board whilst the average family is struggling does not so far seem justified.