Council Clerk and Solicitor Both Give NorCo Council Bad Advice

At its November 26 Budget Hearing, Northampton County Council considered seven different amendments, two of which are apparently unlawful. I explained why yesterday. One of the seven amendments was Council President Lori Vargo Heffner's attempt to divert $225,000 set aside for outside nursing at Gracedale for yet another pointless passenger rail study. Aside from Vargo Heffner herself, that amendment received no support. Council Clerk Alina Shafnisky solemnly instructed Council that amendments needed the support of all five Council members in order to move forward to the budget hearing. "If these budget amendments are not passed by motion at this meeting, they will not move forward for the adoption of the budget," she pronounced. And Council Solicitor Chris Spadoni chimed in as well. "They die tonight," he instructed.

They are both incorrect. 

Typically, what happens at the final budget meeting, which takes place tonight, is that Council votes separately on each budget amendment. Then they are all put together and voted on as a package.. If necessary, there's a recess so the Clerk can compute the changes and their effect on the final budget. Shafnisky obviously wants to have her figures ready to go, but the reality is that budget amendments can be proposed any time after the public hearing on the budget and up and until the budget is actually adopted. Yes, there needs to be a public hearing at which members of the public can be heard. 

Under our Home Rule Charter, the Budget is adopted by ordinance following at least one public hearing.. (Section 704(a)). It further provides that "After the public hearing and before adoption, the County Council shall have the power to amend the budget submitted by the County Executive." (Section 704 (b)). The only time constraints are that budget amendments be proposed after the public hearing but before final adoption.

I'm unclear whether there has actually been a public hearing on the budget ordinance. Assuming that has happened, only then may budget amendments be introduced. And under the Charter, they can be introduced up and until the budget itself is adopted. Nothing in the Charter requires that the only time they can be introduced is at the final budget hearing. That might make life easier for the Clerk, but it's not the law or even prior practice. I have often seen last-minute changes on the night of adoption. Bruce Haines from Hotel Bethlehem has made numerous last-minute appearances with his hand out. And Council has obliged him because Haines and any member of the public has the right to request changes. 

Amazingly, after both Shafnisky and Spadoni told Council that amendments needed five votes to push forward, they have submitted John Brown's amendment to add $5 million to the rainy-day fund on this evening's agenda. His proposed amendment received only four votes. As I previously explained, this will result in an unbalanced budget if it is adopted. 

Shafnisky and Spadoni both gave bad advice but ignored their own instructions to push an amendment that they have to know is unlawful.  

Brown's $800,000 Budget Hole

Standing at the lectern inside Gracedale's Chapel last year, former Northampton County Executive John Brown delivered a homily about NorCo's budget money. year. Instead of Psalms, it was the collection plate.. He solemnly vowed that there would be no tax increase, and added that his budget was the first since 2010 that was completely balanced. There would be no need to deep into reserves. He used this remarkable achievement as a big selling point in his re-election campaign, but as it happens, he was wrong. .

Brown projected that Northampton County would receive $808,400 in revenue to house federal inmates. He apparently had big plans to warehouse federal prisoners. This might explain why he wanted a new jail at Gracedale. Instead of $808,400, the county received just $72 from Uncle Sam this year for federal prisoners.

Lamont McClure, who has replaced Brown as Exec, has had to scramble to find that money from other sources.

Bowning Takes Balanced Budget Proposal to NorCo Council

Browning pitches balanced budget

Former Lehigh County Commissioner Dean Browning made an unlikely trip west east of Route 33 on August 19. He was invited to Northampton County's Finance Committee to explain his proposal for a balanced budget amendment to the Home Rule Charter. Browning made a similar presentation to Lehigh County Commissioners earlier this year, and was politely ignored. The Republican majority blames him for everything, including gypsy moths and the flu. His reception in Northampton County was much warmer.

In both counties, spending almost always exceeds revenue, so they dip into cash reserves to make up the difference. "That's the path of least resistance and works extremely well until you run out of reserves," noted Browning. That's what Ron Angle likes to call the seed corn. Eventually, you run out of it. Over the past dozen years, Lehigh County has had two unpopular tax increases. Northampton County has had three.

"Families don't budget that way, at least not if they want to stay out of bankruptcy," observed Browning earlier this year. "Businesses don't budget that way, at least not successful ones."

Northampton County's Home Rule Charter considers the budget balanced so long as the proposed expenditures do not exceed the amount of funds available. [Section 703(b)]. Similarly, Lehigh County's Home Rule Charter allows the "balancing" to be accomplished by using "the total of estimated income AND cash reserves."

Brown insists this has to change. He is suggesting a "balanced budget amendment" to the Home Rule Charter in Lehigh "that would prohibit the use of cash reserves as a means to balance the budget." There would be exceptions for emergencies or to give a credit to taxpayers when the underlying budget is still balanced, but that would need six votes.

"Everybody buys into the theory, the problem is with the mechanics," noted Hayden Phillips.He suggested that they all need to "noodle" this idea a bit more.