About Me

My photo
Nazareth, Pa., United States

Tuesday, April 19, 2011

How Easton Dug Its Way Out of a $4 Million Hole



Q. While Allentown and Bethlehem have run up major deficits over the past several years, Easton has actually been in the black, something that was never expected. How has that happened?

Panto: "Well, you know when I took office in 2008, the City was in the preliminary talks of Act 47. They went through the early intervention plan and the update to that early intervention plan two years prior to getting here. We worked hard. We have a good team in place. And notice I always say 'we.' It's not me. It's not my sta--, it's we. There's a large group of people who understand that fiscal responsibility starts with tightening the belt. You can't spend more than you bring in.

"We look at the budget a little differently than maybe other communities and certainly maybe the way I looked at it in the past when I was Mayor last time.

"We first evaluate what our projected revenue is going to be, and then we take our expenditures. We bring our expenses down to revenue. We don't bring our revenues u to expenses.

"We feel very proud of the fact that we have not raised real estate taxes, or garbage fees for seniors.

"In 2009, our first budget, we did raise the earned income tax and garbage fees. We were $4 million in the hole. What I looked at, and ultimately it comes down to be my decision as to what we have to raise when we do have to raise things, is we didn't tax unemployed people, which at that time was over 10%. We didn't increase the fees for seniors. So a senior citizen not working, living on a fixed income, and an unemployed family member, didn't get an increase in their taxes."

Q. So the EIT is probably a little bit more fair than real estate tax?

Panto: "I believe that the State should move towards an earned income tax versus a real estate tax. Real estate tax is just way too regressive."

8 comments:

Anonymous said...

maybe bethlum could hire Sal as a consultant. between the second floor, the controller and council they don't have a single clue

Jon Geeting said...

He's totally right about the EIT. The property tax is probably the worst invention ever. It's way too hard to raise it. Sometimes you have to raise taxes, but because it hits people on fixed incomes and the unemployed, the politics are terrible. Better to tax people who have an income, and if you have to have a regressive tax, make it a sales tax so people can actually choose to scale back their consumption in response. At least that's voluntary.

Anonymous said...

EIT more fair?

How about no taxes is more fair. Easton has high taxes and fees twice the levels of Beth and Allen. You keep writing that everything is great, not really.

Anonymous said...

Yes, Easton has high taxes and fees and we finally have a mayor who not only recognizes that but is doing something about it. No increase in real estate taxes in his three years, no increase in garbage rate the last two years even though the garbage contract to the city went up and no new fee increases. Chalk the EIT up to the former Administrations failures to fix their deficit spending.

I was unemployed when the EIT was raised and I am now back to work. It was a great idea then and I support it now becasue I am back to work and don't mind paying a little more to help those that are unemployed.

Alexis de Tocqueville said...

" ... if you have to have a regressive tax, make it a sales tax so people can actually choose to scale back their consumption ... "


This is the mentality of the Third World. How embarrassing to clutch to a political philosophy that is so hopeless. I don't know which one is best. But I know the one Geeting defends is nihilistic and abhorrent. There's far more to human potential than Geeting and his cynical fellow travelers give Americans credit. The trick to gradual decline is getting people to accept it incrementally. It's good that the current political mood is to soundly reject this.

Anonymous said...

1.75%! Palmer - 1%, Forks - 1%, Wilson 1 - 1.2% (depending on where you live). Since things are better, how about a break on the EIT. I'm beginning to think I should just move to Palmer and apply the .75% tax decrease to the added Real Estate tax.

Anonymous said...

Thank you and yes the real estate tax would be higher in Palmer or Forks. You are one that realizes that the millage may be lower in the townships the assessments are much higher therefore a similar house in Easton pays less than the similar house in the townships.

Also, by keeping the rates the same in effect the mayor is decreasing taxes. It was a republican mayor that raised our taxes 107% in fourn years and still put us in the hole by $4 million. How quickly they forget.

Anonymous said...

Anon 9:10 Don't follow your logic. If I had the same house in Palmer as I had in Easton the assessment would be the same. What you may be trying to say is the market value may be different. You need examples to prove your point. I have met too many people who have sold $200,000 homes in Easton and moved to Palmer in $300,000 homes and pay less taxes and sewer fees.

My understanding of math is that reducing taxes is the only way to lessen the cost. The cost remains the same if the tax rate is not changed.

Some of these statements make no sense. It is okay if it rains every weekend this summer because the grass needs the water anyway. It's ok to have high taxes because it did not impact me when I was unemployed. Not a smart comment.

If you raised the eit because of a large deficit. Then why did you not lower it the following year.