When Lehigh County Exec Don Cunningham released his 2009 budget, he gave a flowery address to the Greater LV Chamber of Commerce. In contrast, Northampton County Executive John Stoffa's budget message is, like him, much more laconic. Just the facts. The county nursing home, Gracedale, is killing us. Property tax revenue is stagnant. The proposed $330 million budget is 10% lower than the last one. On behalf of the Administration, we are pleased to submit a no-tax increase budget for fiscal year 2009. We have done well to keep costs down: the millage rate will remain at 10.8 mills. A no tax increase budget is proposed despite the following notables:
* Property tax revenue is stagnant due primarily to the decline in the housing market.
* The one-half mill of tax approved in the budget for 2007 remains committed to "Open Space."
* The investment portfolio, cash balances and interest earned are all down due to the economy.
* There is a $25 million decline in estimated revenue and corresponding expenditures due to the elimination of the 2008 General Obligation Bond issue ($20 million) and the line of credit ($5 million) in 2009.
* The Administration is proposing that there be no increase in positions for 2009 (the Courts have requested three (3) new positions).
* The largest increase, $6 million, was in the personnel costs category. This increase was primarily the result of new labor contracts that provided wage increases.
* There is an increase of $487,000 for current and future retiree health care.
* Actuarially determined contributions to the retirement fund increased from $2.4 million to $5.1 million.
* Heating and gasoline costs, mileage reimbursement, and postage have all significantly increased.
* The County contribution to Gracedale is now at $6.9 million up from the original amount of $381,000 in 2008.
* An additional $585,000 in county property tax is earmarked for Children, Youth and Families - an alarmingly expensive trend as the Commonwealth of Pennsylvania continually fails to properly fund Department of Human Services programs.
* The additional $500,000 earmarked for the Area Agency on Aging in the 2008 budget continues for 2009.
* Of the $82 million in property taxes, $52 million (63%) is earmarked for the Courts and court related activities.
* The Administration has committed $75,000 for a feasibility study to explore the possibility of extending rail service from New Jersey into the Lehigh Valley.
* Funding for a regional crime data center is not included in the proposed budget, but the Administration would support a budget amendment to provide $500,000 when gaming revenue becomes available.
* The need for property tax reassessment goes unanswered as the common level ratio is now at 27% rather than the 50% pre-determined ratio.
In summation, the proposed 2009 budget is $330 million, 10.3% lower than last year. The tax rate will remain the same for the second consecutive year.
12 comments:
Where to start!
What's the betting line on what Council will do to it?
The Banker
(1) McClure will try to reduce council's reserve, its rainy day fund, as he has done for the last two years. Although this is fiscally unsound, he will do so and then arguew that he gave voters a tax break. Dertinger will jump on that bandwagon, too.
(2) The courts, which have far too much power, will get the three new positions they want.
(3) Angle will attempt to remove Marin's $75 thousand transportation study, and fail.
One minute he's holding the line on taxes; the next minute he's proposing a breathtaking bond. I smell a shell game here.
10:46 - I'd see an eye/ear/nose specialist and get it fixed. >grin><
Glad I live in Lehigh County. From what I've seen, you're right on the rail study funding. Do you think it's a slam dunk in Lehigh County too?
The Banker
This guy is living off the fat tax increases he got from Reibman. The treasury was overflowing and Stoffa was living large.
He is still sitting on millions of taxpayer money because of his goofy handshake deal with Angle.
When he is gone the people can get some competent leadership that knows how to run things. This guy is pouring money into Human Services and has screwed up Gracedale.
As to the Prison he admits he is lost.
Banker,
It's a done deal in both counties.
Anon 12:42,
How has Stoffa screwed up at Gracedale? How has he screwed up on the prison? If the county was so cash rich under Reibman, why were wages frozen? Why were people laid off?
Stoffa has presented a tight, no nonsense budget, but political hacks like you will try to damage him.
And fail, as usual.
A source inside the Courthouse said Stoffa feels we need a tax increase but some around him convinced him that was crazy.
It's a lean, no frills, budget. Angle thinks Stoffa has taken away too much of the seed corn.
Kill the Courts. They are pigs.
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