Local Government TV

Friday, May 21, 2010

Norco Council Gets Tough on County Spending

Several times a year, Northampton County Council is presented with a budget amendment, mainly to account for pass through grants and other routine matters. I've never seen one fail.

When one was presented last night for approval, I left the star chamber for a minute to get a drink of water. But in that short time span, the amendment failed, 5-3. Council members Ron Angle, Barb Thierry, Lamont McClure, John Cusick and Tom Dietrich all said No.

They were obviously repeating a message delivered in the Finance Committee the day before, when Angle surprised Stoffa by calling for a 5% workforce reduction. Then they began picking at several contracts submitted for approval, questioning what effort had been made to negotiate the best possible price.

They also questioned the wisdom of a proposed lease renewal for District Judge Masut at 31C West First Street in Wind Gap. Owner Joseph Depue wants to increase the monthly rent to $2,250 at what Angle describes as a "strip mall off the beaten path." Although County officials obtained two comparables, Angle scoffed they were from Bethlehem and Allentown.

Noting all the empty office spaces in the Wind Gap area, Angle suggested the landlord should be happy to accept the same rent from a tenant that always pays.

Council will vote on that lease in two weeks.

While this was going on, Stoffa sat quietly, but toward the end of the meeting, he let them have it.

"Tonight, you cut $4.5 million from the state," he chided Council, pointing to specific grants eliminated in children and youth, homelessness, drugs and alcohol. He reminded them they would be "looking in the mirror tonight."

As Stoffa stormed out of the room, Council Prez Ron Angle asked Budget Administrator Doran Hamman whether the money has to be returned to the state. The answer is Not Exactly. The County can still keep the money, but can't spend it until a budget amendment is approved. Because the state fiscal calendar ends in June, Council does need to act quickly.

Hamann then laid out some of the fiscal problems facing the County:

* In 2009, the County dipped into its fund balance to the tune of $6.9 million to balance the books.

* In the first four months of this year, the County has already had to spend $4 million of the $6 million set aside in its fund balance. Hamman is concerned that the County may have to spend between $16 and $20 million of its fund balance by the end of the year.

* Combining the swaption cost as well as some anticipated state cutbacks, Hamman warned that the County could end up spending an additional $49 million.

* Real estate tax revenue, which is pretty much the County's chief source of income, has only risen 0.223% this year.

* Health costs have increased 43%.

Angle, who has been exasperated by the County's finances, stated that "if we continue on this same path, we're headed for a major tax increase." He explained that, while he admires and respects Stoffa, "we've got a job here also." Noting that little can be done about national or state finances, Angle said "there is something we can do about this County. That's why we were elected."

Lamont McClure, agreeing with Angle, stated that "significant and stark action needs to be taken." He pointed to positions that are fully budgeted but never filled.

Stoffa, who feels that he was ambushed by Angle during Wednesday's Finance Committee meeting, is justifiably concerned about losing pass thru grants that help our young, infirm and old. But County Council is also justifiably concerned that there's been no sense of urgency from the Stoffa administration about County finances.

Next Thursday, Stoffa and his Finance mavens will meet with Council to see where money can be saved. Already, the following cost-savings measures are being considered:

* Reducing the workforce via attrition, and insisting that employees in slow departments cross-train to work where help is needed (layoffs damage morale and result in no short-term savings because the County must pay unemployment compensation);

* As many as 54 unfilled Gracedale positions are included in this year's budget, and Some Council members have suggested that the budget amendment should eliminate the funding for those vacancies;

* The possible savings realized by employee buy outs needs to be studied;

* The County needs a plan for Gracedale and County-owned buildings like Governor Wolf (Easton) and Bechtel (Bethlehem).

* Do we need nine judges and three senior judges?

Despite the acrimony, which included shouting in the halls that brought back memories of the good ol' days, I thought last night was this new Council's most productive meeting to date. They really do intend to cut spending. Unlike Allentown City Council, I think they have the administration's attention.

35 comments:

  1. "shouting in the halls that brought back memories of the good ol' days"


    good times, good times...

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  2. Council has an obligation to be concerned about the County's finances, but grand-standing with the budget is an irresponsible move. Nevermind that the amendments allow the County to receive funds from the state to pay operating and personnel costs, but they also include actual decreases to the county budget. Unless we want our county to start running with the efficiency of the state (remember having the last budget in the nation?), there needs to be a different way of handling their concerns. Line-item review of county taxpayer items, perhaps?

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  3. Stoffa's a nice fellow who is over his head. It's time his incompetence is reeled in. How refreshing.

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  4. Looks like O'Hare may be regulated soon! No more in-kind services for Anlge and Dent.
    http://www.blogherald.com/2010/05/20/political-blogs-regulated-fec/

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  5. I agree with 6:17. Council made a mistake voting down this amendment. It only hurts the poor, whose voices are generally never heard. To me, it looks a bunch of inexperienced council members who picked the wrong time to make a stand.

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  6. Republicans always have an attitude of "I got mine. Screw you if you're old or infirm or were sexually abused as a child. I wasn't and I don't want to pay for your problems." They get this attitude from reading the New Testament so much. Unlike Democrats, they rarely are able to care about empathize with anyone's hardships or its affect on the crime rate, unless they actually know someone that falls into the category of needs. Then they're the first to jump on the bandwagon to complain that there are not enough County services for "their little Johnnny's condition." Look at Nancy Reagan with stem cell research or Cheney with gay rights. They wouldn't give a damn if it weren't for Cheney's daughter or Nancy's husband. But the reality is that this Council was elected by us Democrats, even if it was not because they were wanted but because they were seen as the lesser of two evils when confronted with more Joe Long/McHale/Dertinger/McClure Tweedledumb clones. You get what you pay for and you have to accept it. These are tough times. The consequences unfortunately by throwing all the people back out on the street will be increased homeless, drug trafficking and increased crime, and it will reach into the burbs so don't think you'll be untouched if you live on a "Court, Lane, or Circle." Studies are showing that for the first time in this country, there are more poor in the suburbs than there are in the cities in this country...but if the Council wants to cut services, they will probably get their way. I do like the idea of cutting judges even if there wasn't a Recession. If you're not going to try to help the people that are committing the crimes, then stop wasting your time prosecuting them. Let them run wild. Buy a gun. Bernie, you'll be very busy showcasing and focusing on all the people the County turned their back on and threw out of social programs a la the little Malika girl.

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  7. This was a better article than the one in the MCall in my opinion. More informative and seemed objective.

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  8. "I agree with 6:17. Council made a mistake voting down this amendment. It only hurts the poor, whose voices are generally never heard"

    Although I would have voted for the amendemnt, I understand their concern. Like most legislative bodies under Home Rule, Council has little power except with the budget. They are making the administration aware of their desire to get serious about cutting costs in the county. Nobody will actualy be hurt. the amendment will be voted on again in 4 weeks, except this time it might contain some of the cost savings measures outlined.

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  9. C, I do not think the state funding is is jeapordy. To that extent, I think the MC account is inaccurate. Also, I believe it was a 5-3 vote and not a 5-4 vote, but I am not sure about that.

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  10. The "Screw you I got mine" attitude is nowhere more prevalent than in the mind of the public employee. The deficits grow and grow, and their response is, "I'm getting all the OT I can whether the policy is right or not, so screw you." The pensions cannot be funded, but they say "Screw you, I got mine." Pay raises cannot be covered, "Tough, borrow the money, you promised it to me and I want it now".

    Morality or ethics are irrelevant because it's LEGAL, damnit.

    So spare us the libtard compassion bullshit.

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  11. Even though the new council members are very conservative, I don't consider this an ideological matter. Council has made no attempt to cut or eliminate important human services. They are justifiably concerned about government spending.

    The last budget proposed a tax hike. The old council played some games and dipped into the fund balance to avoid the hike proposed by Stoffa. That puts this new council in a position where it is all but impossible to avoid a tax hike in their first year.

    To avoid or minimize that, they have to reduce costs in a big way, and soon. Gracedale is being studied, but it seems that there is no sense of urgency. The Bechtel and Wolf buildings could be sold to produce the funds to pay the swaption and avoid a tax hike, but nothing has been done.

    John Stoffa is a minimalist. He works hard, puts in long hours and agonizes over doing the right thing. But Council is telling him, through the purse strings, that they think he needs to addrss some of these fiscal concerns with greater urgency.

    Let me provide a mundane example - crosstraining. Several years ago, that was identified as an area where the county could have more productivity and yet have no increase in employee costs. It is good for the employee, too, bc it avoids layoffs in departments that are slow.

    Nothing has happened.

    A few months ago, in a Council meeting, Cusick asked Stoffa about taht. "We always talk about it, we never do anything," Stoffa answered, criticizing himself.

    In the time since, nothing has happened.

    That's how Council ends up with an impression that there's no sense of urgency.

    Now these are people who want to help Stoffa. They are on his side. He has (1) restored transparency and accountability to county government, no small feat; (2) has been fiscally prudent, unwilling to waste county money on building things without thining them out; ad (3) is possibly the only county exec in the state trying to do something about recidivism.

    That's a very good legacy.

    But just like a professional athlete, the question is always, "What have you done lately?" He's got a 2 year window with a council that's willig to work with him. What happened last night is an indication that council wants more cost savings measures introduced.

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  12. I did check with the Clerk of County Council, and the vote on this budget amendment was 3 yes, 5 No, as I posted.

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  13. Who didn't vote?

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  14. There was a problem with the live podcast of the meeting. Screen went blank after a half hour. Does that mean it won't be archived?

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  15. They have to sell Gracedale. They can study it all the want, but that's the inevitable conclusion.

    This decision, alone, will define the current council's legacy.

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  16. I'll ask IT Director Al Jordan on Monday. I snuck out of the courthouse early. Don't tell anyone.

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  17. "If you're not going to try to help the people that are committing the crimes, then stop wasting your time prosecuting them."



    It's a special treat when a nugget like this appears in a whining lefty's crying fit.

    Thanks for the laugh. I'm off to help a few criminals commit their crimes. It takes a village.

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  18. 4:33, that is probably lefty Dave. He is big for the Treatment prison so we can heal the poor druggie crooks.

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  19. Here's what happens if we don't do what Angle says:

    http://legalinsurrection.blogspot.com/2010/05/has-first-public-sector-union-domino.html

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  20. Just read Angle already buckled, lehighvalleytimes. Folded faster than superman on laundry day. He'll support the spending amendment before any cost savings corrections are added.

    Our County Is Doomed!

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  21. Angle buckled. He's gone from forgery to plain old lying. Next thing you know, he'll blame it on drinking or some other poor excuse used by lowly cowards with no conscience. No wonder Bernie loves him.

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  22. Could be worse. Could be a bottom-feeding coward like you who attacks anonymously and on a weekend bc you have no life.

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  23. Bernie all your attacks aside, Angle did buckle. With all his backpedaling he makes his vote look like a political stunt.

    Frankly, I hope the other council members hold to their vote. If they do not they will be considered the puppets of Angle.
    Old Stoffa really got An;ge to fold like a cheap suit.

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  24. The Stoffa accomplishments are you joking! Legacy! Really, three so-called accomplishments! You are trying hard O'Hare, I'll give you that. As Oberfuhrer in charge of propaganda you are trying to do your job.

    1. Stoffa did not restore transparency and accountability to government, they never went anywhere. The County system has worked, elections are held, public meetings are held. Other than your silly conspiracy theories there was no loss of transparency or accountability. You hated the previous Administration and play that song over and over but it is false. All based on one corrupt former official. This Administration has defied the Charter in signing a contract illegally. A deal has been struck between a building owner and a treatment company but no one may know the details. Since there is less coverage of this Administration by the local media than any other, we submit there is more secrecy and unaccountability than ever before.

    2.Fiscally prudent? He inherited the largest cash surplus of any Executive, yet he has done nothing and the money is bleeding away. How can that be? He has handed out a few lavish union contracts that have set the County up for massive taxes for years to come. He has pumped millions of local taxes into services like Human Services that are not mandated by law. He scrapped a cost saving plan at Gracedale because the Gracedale brass didn't like it and now the place is hemorrhaging millions. That is fine since he and his buddy Angle have always wanted to dump Gracedale and the hell with the people. He claimed the parking deck was not safe to park on four years ago and is only now starting to fix it piecemeal. He has had more false starts than an old Buick. He isn't thinking things out he is just confused and over his head incompetent.

    3. The famous Treatment Center. Really? Drug Treatment has been done by the county for years. Stoffa's deal is to give a private building owner a County lease and then a nice contract to a third party provider to handle the treatment. No one really knows how well any of this will work since it is all kept secret from the public. We get the glowing reports but none of the costly details. Studies people cite are just that, studies, without any way to relate it to Northampton County. So Ohare, your man with the major accomplishments is really leaving the only legacy he can. A bankrupt County, massive tax increases and still no solutions to any of the problems affecting the County and its taxpayers.
    But he did walk out of a County Council meeting. Nice behavior by such a noble committed guy. guy.


    The Doc

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  25. Stoffa's not a bad guy. But the new, more fiscally responsible council has exposed Stoffa's managerial incompetence. Again, a nice fellow who has swum too far into the deep end of the pool for his abilities. This is not unusual in local politics. The good news is a new, smarter council to prevent Stoffa from visiting the Peter Principle on the rest of us. The system works.

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  26. I would like to comment on the issue of Judge Masut's rent.
    I am shocked that I agree with Ron. The landlord seems to think that the taxpayers are a money tree he can shake down. How does he rationalize raising the rent with there being so much vacant space available? For one minute take Ron and the fact the County is the customer out of the equation. Would the landlord be looking for such a rent hike if his tenant were an average working stiff? I don't think so.
    With all the empty spaces up there, I bet the County could get a better deal elsewhere.

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  27. Bingo.

    I think Council will reject this lease. Why would an appraiser use comparables from A-town and Bethlehem? That's ridiculous, too.

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  28. Judge Masut may use the spare room in my house for half the cost of that preposterous lease.

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  29. "Angle, who has been exasperated by the County's finances, stated that "if we continue on this same path, we're headed for a major tax increase.""

    No, no no. Callahen is getting slammed on here for not keeping his word to not raise taxes. Angle should be held to the same standard!

    hahahahaha yeah right.

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  30. Angle has never made a promise to cut taxes, as Callahan did. Angle has voted against every tax hike ever proposed in NC. I could see him voting for a hike if he felt all other options were exhausted and the county still came up short. So the attempted comparison is wanting.

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  31. Angle makes no promises because he wouldn't keep his word anyway. He believes in nothing but his own notoriety. He accomplished nothing in all his years on council and is about to turn Reibman on taxpayers. I wish he'd forge his name on some useful piece of county business.

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  32. Angle voted for Stoffa's first year tax increase. He can call the 5% tax increase anything he wants but that pig still oinks and and it was a 5% County tax increase.

    Veritas

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  33. Veritas, You are correct. Angle did vote for the half mill increase dedicated to open space and promised by Stoffa when he ran for office.

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  34. The County raised Real Estate tax 5% and it was voted for by Angle.

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