News

Delay in fixing state tax index could cost Loudoun $35 million

January 19, 2010

The 2010 General Assembly Session convened last week. The legislature will face many difficult decisions. One of the most important issues of concern to Loudoun residents will be whether the state reformulates the Local Composite Index this year as it is supposed to do.

The LCI is the formula that determines how much education funding each locality receives from the state. It is designed to distribute money equitably, so poor districts get more school funding from the state and wealthy districts get less. Many in Northern Virginia have long found it unfair that we shoulder as large a share of public education funding as we do.

Every two years, the LCI is recalculated, using updated data on enrollment, income, retail sales and real estate values. Although Loudoun would still be a "donor" jurisdiction, recalculating the LCI this year would, for once, benefit Loudoun because of dramatic declines in the housing market.

Unfortunately, the governor's proposed budget calls for a delay in reformulating the LCI by one year. Many jurisdictions in other parts of the state would benefit from this delay, but some would be hit hard. Loudoun is hit the hardest and stands to lose $35 million this year – more than 6 cents on the real estate tax rate.

I have introduced a budget amendment in the Senate to reverse this unfair delay. While this will be a tough and uphill battle, I am committed to seeing that Loudoun receives the share of funding it is due. I will support no budget that treats Loudoun County, our school children and taxpayers unfairly.

Op-Ed by Sen. Mark Herring
Loudoun Times-Mirror