As Arlington officials review the latest incarnation of the county budget, fiscal watchdogs are saying one of its proposed grants programs is need of an overhaul. Members of a county-appointed review committee released a report last week evaluating the Homeowners Grants Program, an initiative aimed at reducing the costs associated with owning a home in Arlington. Yet, unless some aspects of the proposal are changed, committee members said, the program could be a waste of money.
"The cost of this program is estimated at $2.1 million this year and at least $1.7 million into the future," said member Sean Hosty. "I can easily support additional funds going to the needs of more critical programs that, in my opinion, could benefit more from these funds and would truly help the neediest in Arlington."
The grant program, as it stands, would award an average of $500 to homeowners earning a maximum of $72,000 with homes valued at a maximum of $240,000. Committee members questioned whether the program would have any real impact for those who would need it the most.
"I believe that the income maximum of $72,000 and the asset maximum of $240,000 are set too high," said Karen Lundy, who also serves on the Fiscal Affairs Advisory Committee. "I think the program should be targeted to needier residents."
OTHER MEMBERS agreed. Many also asked that a higher amount be doled out through the program. In a statement Patrick Smaldore suggested the award be raised to $1,000, but even that, he said, might not be enough.
"Even at this level, it would be the equivalent of only about one-quarter of the real estate taxes on the average-priced, single-family home in Arlington in its first year of operation," Smaldore said.
To evaluate the program, County Manager Ron Carlee asked the committee to take into account the rise in real estate assessments. But diverting special funds to homeowners through the proposed program, some said, could be an overreaction to home owning costs.
"Once this program is created, it may be difficult to stop," said Hosty. "I believe the proposed Housing Grants program may be a knee-jerk reaction. Because almost everything is cyclical, it is highly unlikely the next five years will be like the last five years. The real-estate boom will not go on forever. A more historical approach will show that real-estate tax rate has been relatively modest."
The committee voted 7 to 5 to approve the program if the changes they called for are made. Reducing real estate taxes across the board, Smaldore said, appeared to be more favorable to the committee. The preferred method of supporting homeowners in Arlington, he added, would be the passage of the Homestead Exemption, a proposed amendment to the state constitution. It would exempt up to $100,000 of a property's value from taxation. It failed to pass during the last session of the legislature after it was put forth in January of 2005.
"This one-time proposed program would not provide a long-term stability to those Arlington residents most likely to be forced to move from the County due to real estate assessment increases," Smaldore said. "Administrative costs, even excluding program startup costs, are too high."
The committee was appointed to review the program Feb. 15. It will be reviewed by the County Board as part of the ongoing examination of the proposed 2006 budget. The board will vote on the final draft April 16.