A Necessary Discussion for Cities and Counties

When Gov. Tim Kaine threatened to veto an early extension of Virginia’s ban on annexation, set to expire in 2010, he said he wanted time to discuss the city-county dynamic in Virginia.

That discussion with legislators and city leaders began last week when Kaine proposed rewriting the revenue-sharing formula for local governments.

Virginia’s annexation ban has combined with its unique system of independent cities to pit county against city in a zero-sum game that discourages regional approaches to common problems.

Landlocked cities face declining population and a heavy demand for services, while fighting bordering counties for economic development opportunities.

This relationship isn’t good for counties, either. A vibrant downtown — with arts, entertainment and a concentration of business and population — provides an important center for surrounding suburban areas.

But in too many places that center is dead or dying.

Kaine recognizes political reality: The annexation ban will be extended. In an interview with the Lynchburg News & Advance, Kaine said it’s a simple numbers game: Sixty-five percent of the state’s population lives in suburban areas. Lawmakers from suburban areas won’t vote to end the ban.

Kaine wants to find new ways to promote regional cooperation and help cities be successful.

He presented some intriguing ideas to the Lynchburg newspaper, including changing the revenue-sharing formula in a way that encourages broader thinking.

“I’ve always been a fan of the notion that if the state could figure out a way to take state income tax collections and maybe even change the allocation formula by which we revert some portion of income tax back to localities, that gives everybody a motive for everybody else to be successful,” Kaine said.

“If I’m in Wise County and I know that I’m going to get some percentage of the state’s income tax collections, I’m pleading for the Fairfax County Economic Development Authority to be successful,” he said.

The mechanics of such a change aren’t clear. But the goal is inarguable.

Changing the state revenue-sharing formula is only one way to end the zero-sum battle between cities and counties.

A complete overhaul of the state’s entire tax structure could reduce the dependence of local governments on real estate and personal property taxes, and further Kaine’s goal of a system that “gives everybody a motive for everybody else to be successful.”

Kaine is performing an important public service by insisting on this conversation. Improving the city-county relationship is vital to the future economic and cultural success of the entire commonwealth.

(c) 2008 Roanoke Times & World News. Provided by ProQuest Information and Learning. All rights Reserved.