Bethlehem Pundit Bill Sheirer Has a Possible Tax Solution

Bethlehem is blessed with a wealth of intelligent people, although scant few of them are in government. One of the brightest is Bill Scheirer, a statistical economist who used to work in D.C. At last night's meeting of Bethlehem City Council, he drew upon his experience inside the beltway to come up with a suggestion that could not only ease the impact of higher taxes on people with fixed incomes, but would do so without violating the Pennsylvania Constitution's very strict uniformity clause.

Perhaps the most troubling aspect of a property tax increase is the devastating impact it has on people with fixed incomes, most of whom are retired or disabled. Why not just exempt them? You can't because Pennsylvania's Uniformity Clause mandates that "[a]ll taxes shall be uniform, upon the same class of subjects, within the territorial limits of the authority levying the tax, and shall be levied and collected under general laws." The Constitution does allow the General Assembly to carve out a rebate for those of us with limited incomes, but it is quite limited. 

He said that in the DC area, any property tax increase due to improvements made to the property goes into escrow and becomes due only when the property is transferred. He suggested that property tax increases could be deferred on seniors or those with limited income until their home is sold. They would still be obligated tp pay the taxes due before the increase. 

Here's an example. Let's say your current property tax is $500 a year. The City approves a tax hike to $600. You would still be obligated to pay the $500, but could defer payment if the additional $100 until title to your home is transferred. 

Bill's suggestion still runs afoul of the uniformity clause. But if this deferral option existed for everyone, it would withstand an attack because taxes would be uniform, 

Most homeowners would likely pay the increase if they are working, but would have the option to defer if, in their opinion, they need that money. The city would still realize an increase in revenue and would have a basis for a very low interest tax anticipation loan because the money will come once the home in question is sold. 

This idea is certainly worth a more detailed review. If the numbers work, they could make tax hikes a little more palatable.

The Unfairness of Privatized Tax Collection

Few dispute that real estate taxes, which fund schools and many other municipal services, are very unpopular. But so far, any and all attempts at "reform" have failed. Even if successful, the tax burden would simply be shifted to an increased income or sales tax. One thing is certain - taxes are here to stay. The last thing on the minds of most public officials is being fair about it. The story I am about to tell makes that very clear.

Lehigh County officials are a bit more fair than their counterparts in Northampton County. In 2012, Commissioners went ahead with a reassessment that was at least intended to spread the misery more evenly. Northampton County Council members, who worry about keeping their seats, prefer to kick the can down the road while school districts and municipal governments routinely raise taxes. Their last reassessment was done in 1995.

How the County collects unpaid real estate taxes

If you fail to pay your real estate taxes or make payment arrangements, the County can sell your home after you are delinquent for a period of two years. Before that happens, the county runs ads in the local papers. People love reading them to see who is behind. Most delinquent homeowners come forward at this time and make payment arrangements. But there are still a few homeowners who, for whatever reason, fail to pay their bill or make arrangements. Their property can then be sold in what is known as an "upset" sale, which is held once every year.

Northampton County's upset sale takes place tomorrow at 2 pm.

At an upset sale, you can buy this property, but it is subject to whatever other liens might exist. You get the property along with whatever unpaid mortgages and judgments are out there. So most properties remain unsold. That's when the county kicks it up a notch, and schedules what is known as a "judicial" sale of the property.

The judicial sale is unlike the upset sale in that the County gets a court order authorizing a sale free and clear of all liens, except for the outstanding taxes. At this sale, almost all the properties are sold.

When the County sells your property to collect unpaid real estate taxes, it moves very slowly, and for good reason.  People have a constitutional right to due process. County officials get very concerned when someone fails to respond to notices. Is the person really a tax deadbeat? Or is the homeowner an elderly person suffering from dementia?  If there is any doubt in the minds of county officials, the sale will be delayed another year

Enter the tax farmer

Most school districts and many municipalities are unwilling to wait two years or more to get their taxes. They want their money now. Instead of relying on county officials who recognize they have some obligation to be fair to homeowners, they have actually privatized the collection of taxes by employing tax farmers.

Throughout history, tax farming has occurred in Egypt, Rome, Great Britain, and Greece. It has always been accompanied by abuse. Founding Father Benjamin Franklin predicted that privatized tax collectors, "the most indiscreet, ill-bred, and insolent [men] you can find," would lead to revolution.

Nevertheless, nearly every Lehigh Valley school district, along with cities like Bethlehem and Easton, use Portnoff Law to squeeze homeowners. They make their money by assessing attorney fees that in some cases are ten times the amount of unpaid taxes. Portnoff represents 130 municipalities and handled over 40,000 municipal collections in 2015.

Unlike county tax claim bureaus, which schedule tax sales only once a year, Portnoff and other tax farmers will go to work immediately.

The first step is to file a municipal lien, and of course, assess attorney fees. About a month later, Portnoff will file what is known as a writ of scire facias, which is a fancy way of saying that it is going to enter judgment against the homeowner, even though the municipal lien pretty much makes it impossible for the homeowner to sell the property without paying off the lien. After that, Portnoff will enter judgment and, of course, tack on more attorney fees.

The final step is the Sheriff's Sale, with even more attorney fees. In 2015, Portnoff listed 512 properties for Sheriff Sale, and ended up selling 73 of them.

Sheriff Sales Confuse Potential Bidders

This accelerated process is extremely unfair to homeowners, many of whom are already distressed financially. The extra money they pay to prevent a sale goes into the pocket of the privatized tax farmer, not the municipality.  But  it also unfair to bidders at the Sheriff's Sales  They are accustomed to thinking that they are buying the property free and clear of liens. But the sale is actually an upset sale, at least at first.

Last month, in Northampton County, someone bought a property at a Sheriff's Sale. But on her way up to deliver her check, someone complimented her on buying a $50,000 mortgage. She panicked and withdrew her bid.

The Lehigh County Experience

The same thing happened in Lehigh County last week. Agent 99 was there, and told me what happened.

A downtown Allentown property was up for sale because of unpaid school taxes. Someone bid on the property.

The Deputy Sheriff handling the sale asked, "Do you know what you're bidding on?"

"You mean the address?"

"No, it's an upset sale. You're buying subject to any liens. Do you want to withdraw your bid?"

"Yes."

When someone in the back heard what was going on, he got very upset that bidders were not being told, in advance of each sale, whether the sale is "free and clear."

He was asked to sit down, but he was upset and refused, and eventually was dragged out of the room by two deputies as he complained, "This is not fair."

     

Of course, it's unfair.  This is no longer about collecting taxes, but enriching Portnoff at the expense of everyone, from homeowner to unsuspecting bidders.

After this guy was dragged out of the room, the very next property up for sale was another Portnoff sale. This time, the Deputy asked Portnoff's attorneys to explain whether it is an upset sale.

"I have no legal obligation to do so, but I will," huffed the attorney.

That's a problem. Privatized tax collectors have no obligation to be fair. This is why tax farming should be illegal.

I contacted the Lehigh County Sheriff's office and spoke to the Deputy who ran the sale. She was unable to speak to me, and said I'd have to talk to the Sheriff. But he failed to return my call. The Portnoff lawyers also refused to explain what the hell they are doing. And why should they? They don't work for us. 

Cusick Proposes $5 "User Fee" on Vehicle Registrations

Next time you renew your vehicle registration, it might cost you an extra $5. Northampton County is considering imposing this "user fee" to help fund road improvements and bridge repairs.

In 2013, the state legislature enacted a massive gas tax, giving the Keystone State the highest gas taxes in the nation, even higher than California and New York. In addition, it authorized counties to impose a $5 "local use fee" on vehicle registrations, so long as the money is used for transportation. Nine counties have already enacted this additional tax. Should Northampton County be the tenth? That's a question Council contemplated yesterday.

"This is a user fee," explained Council president John Cusick, adding that roads and bridges have been a core government function since the days of the Roman Empire. "I think that this Council ought to look at this ... . It's my belief that we do have a significant use Potentially, we could offset property taxes with this."

Uh huh. Like the casino.

According to Cusick there are 280,000 vehicles registered in Northampton County, so this would mean $1.4 million in additional revenue for bridge repairs. The money could also be awarded to municipalities that need to make road repairs.

Lehigh County is waiting to see what Northampton decides to do before considering this tax itself.

Bob Werner immediately agreed to co-sponsor an ordinance imposing this new tax. "I'm all for the idea," said the announced Executive candidate. Mat Benol also called it a "good idea."

Glenn Geissinger is more doubtful. He spoke of "small business owners or people who have 20 trucks in their fleet.That's another hundred bucks."

Hayden Phillips also opposes this tax or "user fee."

Updated Saturday, 10 PM. A photograph of John Cusick has been deleted.I took the picture, and I believe it is a lousy one and unfair to him. Yes, I am a miserable bastard, but try to be fair when photographing people unless the story is humor.

Beitler Explains Lower Mac's Low Taxes

In an informative post, Lower Macungie Commissioner explains how real estate taxes work in Lower Macungie. Basically, if your home is assessed at or below $111,300, you pay nothing. By his estimation, this means that about 1,000 households are tax free. The millage rate for homes that are valued higher is just 0.50, which is the fifth lowest municipal millage rate.

Although this is a remarkable achievement, my criticism (Yes, I complain about everything!) is that taxpayers throughout the rest of the state, including Allentown, are subsidizing the Township's police coverage. The Township depends on Pennsylvania State Police. But Ron has an answer for that, too, based on a 2013 police study. "The 'bottom line' is largely unchanged from previous police services studies. Lower Macungie Township has a low crime rate and a relatively low demand for police service, in spite of significant population growth and proximity to Pennsylvania’s third largest city."

Rare Bi-Partisan Tax Relief For Business AND Middle Class

Representative Charlie Dent (PA-15) is reporting that he supported a tax relief package yesterday to extend or make permanent a number of key tax provisions designed to help individuals, families and businesses. The bipartisan measure passed the House by a vote of 318 to 109. As reported in Reuters, it's the "closest thing to a grand bipartisan tax bargain in years." It makes permanent the research and development tax credit, suspends the medical device tax and provides aid to students, low-income parents and teachers.

Rep. Dent issued the following statement:

“Today we saw the House come together to provide more clarity and stability on key tax provisions that will help individuals, families, and employers. This bill makes permanent the enhanced Child tax credit, Earned Income tax credit, the current Research and Development tax credit, and the American Opportunity Tax Credit for defraying educational expenses. It also facilitates giving to charities and protects taxpayers from politically-motivated investigations by IRS officials."

"Importantly for the 15th Congressional District, the legislation suspends the job-crushing Medical Device Tax for two years. This will allow us to protect manufacturing jobs and encourage, rather than stifle, business investment in our communities. During the two-year suspension, I will continue working to permanently end this job-killing tax."

"This legislation is an important step for providing American families and businesses better predictability when it comes to federal tax policy. That predictability will lead to more jobs and a better climate in which American businesses can succeed.”

Dent: Extend Payroll Tax Cut Already

As Democrats and Republicans needlessly bicker again over the latest issue of the day, a payroll tax extension, centrist Charlie Dent asks everyone to stop playing political hot potato.

“Before the end of the year, the House and Senate must reconcile the differences between our approaches to extending payroll tax relief. Otherwise, an entirely avoidable tax increase will affect countless hardworking Americans on January 1, 2011.

“While I prefer a yearlong extension, I am certain bicameral cooperation and negotiation can result in a better product than the two month extension approved by the Senate. Additionally, Congress must no longer engage in political hot potato every time a provision of critical importance to the American people needs to be addressed. Bipartisan and bicameral agreements can be achieved when political brinkmanship is abandoned.”

LV Poverty & High Taxes Go Hand in Hand

The Lehigh Valley Planning Commission routinely collects data about the demographics in this area. Its most recent study was released to members at a meeting last night, and contains some interesting findings.

What areas in the Lehigh Valley have the highest tax rates?

If you guessed Allentown and Easton, you'd be right.

Now, what areas in the Lehigh Valley have the highest poverty rates?

Once again, it's Easton and Allentown, according to a member who tells me one out of every five Easton residents lives below the poverty rate.

Now, is there a correlation between those high taxes and poverty rates?  It seems they go hand in hand. When I get the nitty gritty details, I'll post them.

If this is what happens on a local level, what happens nationally?  A massive tax hike was set to go into effect last January, but LV Congressman Charlie Dent voted with a majority to prevent that from happening.

Panto Reviewing Portnoff Collection Practices in Easton

In my weekly Patch column, I've criticized the privatized tax collection that's become all too common in so many local municipalities, including Easton. Portnoff Law Associates, the tax farmer of choice for most municipalities, has scheduled Sheriff's Sales when property owners fall behind on relatively low bills. To stop a sale, an owner must sometimes pay ten times the amount of the original lien. All that extra money goes into Portnoff's pocket. Easton uses Portnoff.

Q. A question about Portnoff. Portnoff is your private tax collector. It's a privatized tax collection firm. I've noticed at the courthouse that Portnoff - and Easton is by no means the only municipality that uses Portnoff, it's used by 26 municipalities throughout the Lehigh Valley. My question to you, sir, is don't you think that they're charging just a bit too much to the people who can least afford to pay it?

Panto: "Well, yeah, and that's a great point, the people who can least afford it. We're evaluating that. I know, in my own business, it's a public record, you know. We starved. We were behind. My dad's business. Great business. Great success. But when things catch up to you, its tough.

Q. It was a great business.

Panto: "It was. It was financially successful, but yet, it was week to week, like every other small business is, and I know that they're really difficult to deal with personally. I've dealt with them.

"I'm a little more compassionate than them. I'm consistently fair, I want everybody to pay their fair share. But certainly there's a way to accomplish that.

"I don't like the contract that the City has with them. It's being reviewed, where they get paid even if we don't get a dime. Their fees get paid first. Well, that doesn't seem like it's a quid pro quo at all. I mean, it's just for them.

"We are looking at it, we are evaluating. I think you're going to see some changes for the 2012 year."

Why Northampton County Needs to Reassess Now

A brilliant essay on Patch. Feel free to tell me why I need to have my head examined now, but you'll have to do it at Patch.

How the hell is Bethlehem going to deal with taxes when there is an updated assessment in Lehigh and an outdated one in Northampton? Somebody is going to get hosed, unless City officials can figure out some way to impose two different millage rates, one for each county.

Dent Playing Chicken on Tax Cuts

According to LVIndependent, Congressman Charlie Dent yesterday voted against extending the Bush tax cuts to middle class Americans. And a reader asks, "[D]id Dent put out a statement on why he voted 'no' on extending the 2003 tax cuts for taxpayers with income levels under $250k?" Below is an explanation from Dent's office:

"U.S. Rep. Charlie Dent (PA-15) today opposed legislation that would pave the way for the implementation of destructive tax increases in the New Year. The bill, H.R. 4853, fails to prevent looming tax increases that will stunt economic growth and prolong the current recession.

"With tax relief enacted in 2001 and 2003 set to expire at the end of the 2010 calendar year, Congress must pass legislation extending the current rates before January 1, 2011 to avoid reinstating a top income tax rate of nearly 40 percent, a 55 percent death tax on family-owned small businesses and farms, and the tripling of taxes on investments. Instead of extending all of the relief provisions, the bill considered by the U.S. House of Representatives today will lead to tax increases on our nation’s job creators and investors.

"'Raising taxes on hardworking Americans will reduce investment, stifle opportunity and hinder economic growth,' Dent said following the vote. 'Particularly in these difficult economic times, we must extend the current tax rates for all Americans. I am especially frustrated that today’s legislation fails to prevent tax increases on small businesses – the very businesses Americans will rely on to create jobs and lead our economic recovery.'

"According to the National Federation of Independent Business (NFIB), the largest association of small businesses in the United States, the businesses most likely to experience tax increases as a result of Congress’s failure to act are those employing between 20 and 250 workers. These businesses represent more than 25 percent of the nation’s workforce. Moreover, approximately 50 percent of small business income would be impacted by the tax hikes.

"'I am hopeful the U.S. Senate will be able to produce a bill that does not impose higher taxes on any Americans,' Dent concluded."

Essentially, Dent is playing chicken in the hope of getting tax cuts extended for everyone.

Updated 4 PM: In response to November's jobs report, Congressman Dent has issued the statement below, in which he again explains why yesterday's vote will actaully hurt people:

“Despite hopes for more encouraging figures, the Bureau of Labor Statistics’ (BLS) latest jobs report has revealed the unemployment rate in the United States increased slightly in November. Reaching a 7 month high, the unemployment rate climbed to 9.8 percent last month. This figure is another sobering reminder Congress has failed to promote an economic environment that supports growth, investment and innovation.

"Yesterday, the House passed legislation that will pave the way for dramatic tax increases on American families and countless small businesses in 2011. Rather than considering misguided economic policies like this, Congress must support job creators by extending the current tax rates, established in 2001 and 2003. Preventing tax increases from taking effect in the New Year will allow small businesses to devote greater resources to job creation and capital improvements.

"It is my hope the Senate will pass legislation that extends existing tax rates before the end of the year. Without taking action, our economic recovery will languish and the nation’s unemployment rate will remain precariously high.”

Open Letter to Allentown Business Community from PaCAN

PaCAN is a conservative, non-partisan, non-profit that represents small-and medium-sized businesses. Its goal is job creation, and believes that is best achieved by a pro-growth business climate in Pennsylvania. Below is an open letter to the Allentown business community.

"The fight against the increased Earned Income Tax in Allentown continues Wednesday the 17th at 5:30PM in City Hall. Your attendance at this meeting is crucial to convince city government of their reckless decision.

"On November 10th, the City Council paraded department after department in front of the public, but failed to cover the most controversial aspect of the meeting: the forty percent Earned Income Tax (EIT) increase on all workers in the city of Allentown. This oppressive tax is slated to cover the massive costs of Allentown’s generous public employee pensions. Obviously this issue is controversial and last Wednesday’s casual conversation and jovial manner conveyed an intentional stalling by the Council to evade any tax sound-bite on the Channel 69 News in attendance.

"The Mayor and City Council are circling the wagons and opposition to their tax scheme is met with special treatment or arm twisting. Even PPL, which initially opposed the tax, has back-peddled to a neutral position to avoid possible reprisal from the Mayor’s office.

"Both the Mayor and City Council must ask themselves how raising the EIT represents the hundreds of businesses and their employees in Allentown. Don’t these people deserve to be represented as much as the public sector employees who in many instances make more money and have better benefits than private sector ones?

"Allentown’s businesses are also without an advocate as the Greater Lehigh Valley Chamber of Commerce (GLVCC) and their Allentown counterpart have been silent on the looting of Allentown’s businesses to cover the city’s “retire at 40 with 153% pay” pension program. It is necessary for them to represent their members and speak out against this state-sponsored theft. If you are a member, please call 610-841-4582 to ask them to oppose the tax increase.

"Allentown’s businesses will have tough decisions to make in the next few months. You have within you the power to stop the looting of your life’s work: the business that feeds and shelters your family. We need your help to make Mayor Pawlowski and Allentown City Council reconsider this misguided course.

"Sincerely,

Matt Balazik & Skip Salvesen
Managing Directors
PaCAN – Pennsylvania Commercial Action Network"

PaCan Condemns Pawlowski's 40% Tax Hike

King Edwin wants to impose a 40% earned income tax hike on everyone, even those who live outside of Allentown. Is it any wonder he calls it the City Without Limits?

PPL, the Queen City's largest employer, thinks this is a bad idea that will make it more difficult to recruit talent. But what the hell do they know?

Pro-business PaCAN has issued this news release:

"Wednesday night, the mayor of Allentown and City Council is expected to discuss a plan to increase the Earned Income Tax by 40% and apply the tax to all city workers, regardless of where they live. Yet some outlets still view this city boss as a reformer. It is the height of historical revisionism that Ed Pawlowski, Card Check supporter, is viewed as a champion of pension reform. His proposed budget solution to this crisis is to tax the income of every dollar earned within city limits to pay for the pension costs he’s inflated as a matter of policy since the day he flew in from Chicago.

"'Business owners cannot be blamed for setting up their shops and offices outside of Allentown to protect their families’ and their employees’ wages,' said Matt Balazik, Managing Director of PaCAN. 'The men and women who work private sector jobs in Allentown are in disbelief that as they’re struggling to look after their own retirement and family security, the government wants to tax their wages and subsidize the failed leadership downtown by paying for the pensions of public employees who make on average 40 percent more in salary and benefits than they do.'

"'If Mayor Pawlowski intends to emulate Philadelphia’s business climate, he should take a look at the results. Simply taking a drive down City Ave., on the border between Philadelphia and Montgomery County, it’s plain to see what side of the street the moneymakers have decided to locate and in many cases relocate. By driving employers out of Allentown, not only will his earned income tax proposal have negative long- and medium-term consequences, but it will also immediately reduce the property values on which most of his budget is based,' adds Balazik.

Updated 10:00 AM: In an email this morning, Pa-Can makes their position even more clear. "This tax increase is a direct attack on Allentown’s private business owners and their employees." They are asking Allentown businesses to call the Greater LV Chamber of Commerce (General Line: 610-841-4582, Allentown Office: 610-841-5800), Allentown City Council (610-437-7556) and King Edwin (610-437-7546).

Callahan Unfamiliar With Bush Tax Cuts

Because House Speaker Nancy Pelosi sent everyone home without voting on an extension of President Bush's 2001 and 2003 tax cuts, they will all expire at the end of the year. This includes a first-ever 10-percent bracket for low-income workers, first-ever deduction for college tuition and doubling the child tax credit from $500 to $1,000.

At Sunday evenings JCC debate between Bethlehem Mayor John Callahan and Congressman Charlie Dent, Callahan seemed unaware that many of these tax cuts were directed at low- and middle-income America. Dent complained about being sent home without "dealing with this very significant issue. Because of this, come January 1, taxes on income, on families with children, on married couples, on investment funds, savings; they're all going to go up. ... The Congress ran out of town without dealing with it."

Callahan focused on "billionaires," but was totally confounded when asked specifically about the reduction in the child tax credit from $1000 to $500.

"As a father of three, I certainly would not support lowering the tax credit for dependents," he smiled. "That is important, and I think we should keep that in place."

That's nice, but it will be gone by the end of the year unless Congress acts, and that's hard to do when they're in recess.

"My opponent, you can understand why he's inexperienced," remarked Dent. "You know, the so-called Bush tax cuts included a tax credit that went from $500 to $1000. Because Congress failed to deal with this issue of extending these tax rates, that child tax credit will be halved. It will go from $1000 to $500."

"You say you support the Bush tax cuts, that was one of them ... . People talk about the rich all the time ... ."

Pa. Independent: Pa. Considers Higher Taxes at Fuel Pump

That way, you'll just blame Arabs.

Stoffa Proposes 9.3% Tax Hike in Northampton County

The Express Times' Sarah Cassi broke the disturbing news late this afternoon that Northampton County Executive John Stoffa has proposed a 9.3% tax hike next year. Before last night's couny council meeting, Stoffa was quizzed by the press. Here's a few points.

* The total budget is is $330 million, a drop from last year's budget of $362 million.

* If adopted, this would be the third year in a row that the budget has decreased.

* Stoffa asked department heads to cut 10% from their budgets, and and has made no new additional hires. The Courts are calling for 4 new employees and the DA is reportedly seeking 2 additional people, but Stoffa noted he will not interfere with those independent offices. "We have no control over that."

* The reason for the increase? Real estate tax revenue is stagnant, but costs continue to rise.

* Stoffa will maintain a hefty fund balance, which will be somewhere between $35 and $45 million at the end of next year. "That fund balance has enabled us to pay our bills, unlike some other counties," he noted referring to how severely the state budget impasse has affected some counties.

* The budget will be posted on the county web page for public inspection on Friday.

Update: The 2010 proposed budget is online and may be reviewed here.

761 Properties Up For Tax Sale in Northampton County

On September 17, the tax man cometh. If your Northampton County property is two or more years delinquent in real estate taxes, it will be sold at an "upset" tax sale to the highest bidder. The leeches from Philly and Jersey, as we like to call them, are already researching different properties they'd like to buy this month.

Overworked Cindy Hoffman, who runs our tax claim bureau, tells me that 761 different properties are still listed for sale. I'm pretty sure that's a record, but Cindy has no time right now to compare this year's tax sale to what has happened before. She and her staff are on the phone, trying to track down property owners before their house is literally sold out from under them.

Don't Count on Any Tax Rebate in Northampton County

At last night's Northampton County Council meeting, members Lamont McClure and Charles Dertinger introduced an ordinance granting a 10% rebate on all real estate taxes paid this year. They claim the county has at least $60 million lying around, doing nothing, so that money should naturally go back to the taxpayers.

How Republican of them!

Someone anonymously sent me this note:

"The county administration is using the excessive reserve as a SLUSH fund for pet projects. Council members Dertinger and McClure are correct in asking that a portion of the reserve be returned to the taxpayers. This administration increased the size of county gov't to a point where a 20-25% tax increase will be necessary to cover cost."

Forks resident Ken Nagy made those same points last night.

But is there really an excessive, $60 million, cash reserve? That's the $60 million question.

The ordinance has been forwarded to Ron Angle's Finance Committee for review on Monday. According to Angle, "The reality is that there is at best a $2 million surplus." I'll have a full report after Angle's committee brings in the fiscal experts. But I suspect this McClure-Dertinger proposal is just cynical grandstanding on a measure they know will fail.

Instead of thinking about good government, they're writing their next campaign ads.

Northampton County Tax Hike Proposed

Lehigh County Exec Cunningham has already declared he's holding the lid tight on a tax increase next year. It's amazing what you can do when you don't let the judges run your county.

Northampton County is not so lucky. After letting the judges run rampant for the past eight years, the county is literally bleeding money. County Exec Stoffa told a Council committee late today he'll have to propose a tax increase in the next budget. That's no surprise. The daily buffing expenses for the judges' marble floors are alone enough to require a hike.

I have no details. I suspect you'll get those tomorrow from The Express Times or Morning Call. This is just a heads up.

Don't you feel special?

Update:

The Express Times report of yesterday's Finance Committee include Stoffa's positive assertion that there will be a tax increase, followed by a statement that a hike is "probable," and a statement following the meeting that he just doesn't know.

This equivocation is a little disturbing.