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There are special problems associated with the property tax for rural counties. Generally lower Values of property in rund areas make it difficult for some counties to generate suf- ficient revenues to meet mandated requirements with local tax levies. Accordingly, when entirely new statewide tax sources are examined, geographic redistribution of these. revenues should be considered. At the same time, it should be recognized that in counties where valuations closely approx mate actual value~ higher effective tax rates may be paid by rich and poor residents of those counties. No redistribution of new tax sources should be implemented without taking into account taxpayer equity as reflected by local needs~ local funding efforts; and local' funding capability,. · There may be circumstances in Which broad statewide policy objectives necessitate reduc- tions in the tax base.4 Of local governments. In such cases, the General Assembly should provide counties and cities with reimbursements from state sources which replace the ac- tual loss in each county on a dollar-for-dollar basis. Any optional tax authority forcountieS should be employed to produce unresn-icted revenue under the control of county dommissioners and municipal officials. Local govern- ment tax revenues should not be earmarked for specific programs, functions, or services. Optional tax sources should be evaluated by state and local officials in terms of their im- pact On various groups of taxpayers, taking into consideration ability to pay, wealth, and benefit in order to avoid overburdening any particular group of taxpayers. Fiscal Integrity of Counties The continued fiscal health of county government depends upon: State laws whicb provide for sound financial management practices that are adaptable to the special needs of each county. · Guidance from appropriate state agencies on necessary improvements in consistent ac- counting, reporting and andifing procedures. · Recognition by state agencies which oversee programs operated by county governments thai there have been significant improvements in'budgeting and fiscal managemen, t prac- tices at the county levels and elimination of pressure from state agencies on counties to carry out practices Which are redundant, duplicative, or inconsistent with generally ac- cepted principles of budgeting and accouuting. · Timely information from the Legislative and Executive Branches of state government regarding budgetary decisions which affect taxation, budgeting, and fiscal management by counties. In order to enhance the fiscal integrity of counties, the Association of County Commissioners will continue to support changes in the state law, rules, and regulations which will improve finan- cial management practices and reduce inconsistencies in fiscal procedures among programs ad- ministered by county governtnents. Financing Public Facilities · ~? .... . . .'i~'. County governments have the primary responsibility for financing a range..i3f pubhc faedmes which include: public schools, local jails; court buildings and county administrative buildiugs. His- torlcaily; counties have utilized the public bond market as the main source of long-term financing for such facilities. Recent changes in Federal tax laws which will ;tffect the municipal bond market, along with the use of new facilities financing techniques in other states, necessit:tte consideration of broader financing authority for counties. . Accordingly, the AsSociation will Work with the l.~al Government Commission to find su.it.able alternative means of fin'ancing necessary public facilities. The Association believes that revtstons in the traditional approach to long-term financing of public facilities should offer flannel:ally feasible ways of providin~ multi-year financ ng of capital projects without jeopardizing fiscal well-being of county governments.