About Me

My photo
Nazareth, Pa., United States

Monday, October 12, 2009

Northampton County Council Candidates Condemn Tax Hike

Five Northampton County Council candidates are unhappy with John Stoffa's 9.3% proposed tax hike next year. By clicking on their names, you can see their responses for yourself. At the end of this post, I provide an analysis of their answers. If you're only interested in what the candidates said, you can skip that part.

Question: Private sector employment is obviously down tremendously in terms of raw numbers. The private sector work week is now down to about 33 hours, squeezing everybody all the more. ... Government salaries since 2000 have increased an average of almost 60%. Private sector salaries have only increased about 30%. Obviously, the public sector is really accelerating rapidly ahead of the private sector on a lot of these issues. Council has been handed a budget proposal with a 9.2% county tax increase. Tell me where you stand on the tax increase and the discrepancy between the public and private salary advancement.

Tom Dietrich: "I really do not like the fact that, once again, it's been presented and the attitude is it's going forward. We have elected officials. Some of them are going to stand strong; many are not. And we're basically just going to vote for a tax increase.

"If elected, I will just not pander to special interests, special projects, little pet projects that go on. The budgets have been wasted in the past years, half a million dollars on curtains, $600 thousand on redecorating a room that they meet twice a month in. This is ridiculous.

"I think we need to be realistic. We need to take the approach that private industry has. Trim the fat. I think this could be done at the government level. We do have some fat cats in government that have been in charge of making decisions on wages as well as making decisions on their own wages. We see it in council."

Barbara Thierry: "I spent over 20 years in the private sector. My husband and I owned two small businesses. We started our two small businesses with very little cash and retired pretty comfortably. So we basically lived the American dream.

"I believe in the private sector. I think the council should look for more ways to use people from the private sector. The union people get paid much more. The private sector gets paid less. It will cost us a lot less because they leave, they go home, we have no responsibility for them. We don't like what they do, we can fire them. We can move on and find a new company. Right now, we're stuck with what we have.

"If I win a seat on council, I would certainly look to make some cuts. I've done it in my own life and I think you need to do it.

"And I am not for a tax raise. That's just ridiculous at this time."

Bruce Gilbert: "In terms of the 9.2% tax increase being proposed, we're currently in a place in our nation and in our economy locally here, where we need to take a serious look at spending. I'm a proponent of an overall reduction in government spending.

"I think that the budget needs to be revisited to see where these funds are being appropriated, if in fact, they are being appropriated in accordance to waht the county would need and what the county wants, and the residents and businesses here in the county.

"In terms of the disparity between public sector incomes and private sector incomes, I'm a banker. I'm with Wachovia Bank. I've seen what the private sector is going through currently. What needs to be revisited there is those who make the decisions on wage increase or decrease, per position, and those positions be valued, and they should be paid commensurate with the value."

Charles Dertinger: "What we're talking about in a 9.3% increase is a proposed budget, one for which I can tell you here today and now, I will not be voting for in its current form. We have a $45 million surplus in Northampton County. $45 million and we're coming back to you all and saying that we need more money. It is not something that makes sense. it is not something that you would do in your own homes, within your own budgets. If you had money set aside in a rainy day fund, you would go to the rainy day fund before you would go out and borrow money or seek other ways to get money.

"The county spends and certainly wastes significant amonts of money. One of those areas in the past three or four years - we spent over $600 thousand in legal fees in an area that was entirely unnecessary. We have a significant Solicitor's staff in northampton County, and there really is no reason for us to carry a $45 million surplus ... ."

Lorraine Pasquale: "I agree with everyone here that I do not believe that a tax increase at this time is necessary, considering what the county has on hand and what people are facing in their homes with their own budgets at home. I feel a tax increase would just be disingenuous."

Blogger's Analysis:

1) Neither Dertinger nor Pasquale answer where they stand on the disparity between public and private salaries.

2) Dertinger and Pasquale advocate raiding the "rainy day" fund to balance a budget. This is irresponsible. It's contrary to both the Government Finance Officers Association (5 to 10 percent of general fund operating expenses) and Standard and Poors (2.4 months of expenses). In addition to exposing the county to risk, it delays the inevitable, and the result is a 60 or 70% tax hike once the rainy day fund is depleted. Stoffa's $330 million budget should have a rainy day fund between $33 million and $66 million. Finance Director Vic Mazziotti has projected it will be around $35 million.

3) Charles Dertinger notes that outside attorneys have been paid nearly "600 thousand in legal fees in an area that was entirely unnecessary." What Dertinger fails to say is that this money was spent to negotiate with 11 different unions, many of which were establishing their first contract. Perhaps that's why he's reluctant to discuss the disparity between public and private sector.

17 comments:

Anonymous said...

Once again Ohare deceives all. Dertinger is exactly right. The RECOMMRNDATIONS ohare notes are like some state officials reommending you have one public employee for every ioo citizens, self-serving.

There is no specific law requiring the County to sit on $45 million. It is because Stoffa and Angle cut a deal.

The Truth shall set you free or you can listen to ohare and Angle.

Anonymous said...

to have credit extending bodies recommend that you have X% of funds in reserves is like having your insurance salesman tell you which insurance plan is best for life insurance.

Of course SP wants you to have those reserves... if you don't have them and something goes wrong, THEY get screwed b/c you can't pay them.

Come on Bernie, you ought to know the self-interest inserted into such recommendations. That's just sloppy.

Anonymous said...

GFOA recommends 5-10% in reserves. In a 330 million budget, that means you can do 16-33 million in reserves. Given the economic climate, it is entirely reasonable and fiscally responsible to go with the 5% instead of 10% number. Sorry Bernie, but it apperas there is about 16 million in reserves that could be eliminated to reduce the tax increase this year.

We can comfortably expect housing sales to increase by the end of 2010 (meaning realty transfer tax revenue increases) so that the 60-70% increase you try to throw for the 2011 budget is likely to be much smaller if even necessary at all. Using fear of something over which you have less certainty than i do (or anybody for that matteer) is just wrong.

Bernie O'Hare said...

You'd got GOFAS and S&P. A safe fund is $33 to $66. Stoffa's budget calls for $35. If you want to shave $2MM, I'll agree. But it won't stop a tax increase.

Bernie O'Hare said...

"Of course SP wants you to have those reserves... if you don't have them and something goes wrong, THEY get screwed b/c you can't pay them."

That's ridiculous. SP rated NC and has no financial interest in its bottom line. If anything, SP has erred on the side of giving ratings that are too favorable.

Many municipalities have as much as 18 months of expenses as part of their surplus. That's excessive, but it's entirely reasonable to carry two months. I could see dipping a little lower, but it will affect bond ratings. That's unwise. Stoffa fought off Dertinger & McClure's attempt to do that, and the next result was a great interest rate on a bond that will save the county millions.

Don't be foolish. In addition to dipping into money that will probably be needed for the next state budget impasse, you are making a huge tax increase inevitable the following year. We can name it the Lamont McClure tax increase. Is that what you want?

Anonymous said...

that's right... name a tax increase that may or may not happen for the 2011 budget. create fear. Be afraid. Boo!

you political talking heads are all the same--you love to scare people into seeing the world your way. It's a shame that you disrespect somebody as diplomatic as stoffa by resorting to such tactics. Disagree on approaches to gov't as much as you want (I happen to agree with Stoffa), but let's keep this focused on what will work and not trying to scare people by resorting to such tactics. It comes from the same vein as death panels and it speaks to the absolute lowest form of politics: fear. Do you really think Stoffa needs you to scare people to make the case that his approach is the most responsible?

Let what is right speak for itself and allow those who want to play games play their gamesn (read: Ron, Lamont and Charles). Voters are smart enough to see the crap they spew. They are also smart enough to understand that when all is said and done, a 9.3% tax increase is offensive, but it's not going to be the end of the world.

Anonymous said...

Bullshit, the tax is unneeded and unnecessary. Stoffa is a lifetime bureaucrat that never knew how to balance a budget.

It is sad the taxpayers must pay for his incompetence. Of course credit where credit is due, to Republican Party Chair Roy Shuman who gave voters no option this Novemeber. A move supported by all the Republican County Council candidates. All real Republicans should stay home on election day since no real Republicans are on the ballot just Stoffa rubber stamps.

Also folks, it is a percentage of the OPERATING bidget, there is a difference. Not that you will get the facts here. This is nothing but another under the table Stoffa campaign quid pro quo.

Bernie O'Hare said...

Actually, this a Lamont-McCklure-Charles-Dertinger tax increase. For three years, they have pissed away money instead of being fiscally responsible. They encouraged unions to make unreasonable demands, forced the county to spend millions on a park in the middle of a recession, caused the county to waste $440k in engineering feeds for a road project that went nowhere, wasted $660k in taxpayer funds for new curtains and wallpaper in their meeting room, as well as laptops for every council member, and interfered at every opportunity in the proper administration of this county. Now, they want to flush the rainy day fund down the toilet aintead of agreeing to a one mill tax increase, which will only make a major hike inevitable in the nect year.

Bernie O'Hare said...

Actually, this a Lamont-McCklure-Charles-Dertinger tax increase. For three years, they have pissed away money instead of being fiscally responsible. They encouraged unions to make unreasonable demands, forced the county to spend millions on a park in the middle of a recession, caused the county to waste $440k in engineering feeds for a road project that went nowhere, wasted $660k in taxpayer funds for new curtains and wallpaper in their meeting room, as well as laptops for every council member, and interfered at every opportunity in the proper administration of this county. Now, they want to flush the rainy day fund down the toilet aintead of agreeing to a one mill tax increase, which will only make a major hike inevitable in the nect year.

Anonymous said...

You don't pay taxes ohare, so what do you care if Stoffa taxes us out of our homes.

Bernie O'Hare said...

Excuseme, but last time I checked this was still the United States. Renters, in addition to the landed gentry, have full rights as citizens.

Anonymous said...

fear, FEAR, FEAR...

John is a good man. He doesn't need you using fear to make his points. Does he know you are doing this or is he encouraging you to do it?

FEAR!

Bernie O'Hare said...

This is not fear, but reality. If we do not impose a tax increase this year, ansd recklessley invade the fund balance, we expose ourselves to unnecessary risk and make a major tax ncrease inevitable the following year. That is reality. Dertinger and McClure know this, but are pandering votes right now.

Anonymous said...

My mother in her row home is hardly landed gentry. You and Stoffa don't care since he has his 30 odd government pensions.

Bernie O'Hare said...

I doubt you have a mother and shame on you if you allow her to live under poor conditions.

The simple truth is that we are all citizens, renters and landed gentry, whether you like it or not.

Anonymous said...

You crap on a guys mother for Stoffa. You are a real piece of work ohare.

Bernie O'Hare said...

I've done no such thing. I've criticized you for not taking care of your own mother,assuming you have one.