Lower Merion Citizens for Responsible Budgeting
President Reed Advocates for Greater Tax Increase
Oct. 29th , 2008
To the Editor:
Amid the worst economic crisis since the Great Depression, a majority of Lower Merion Township’s Board of Commissioners has signaled that the Township’s spending needs are more important than the budgetary needs of its residents. An October 22nd party-line vote by the Board green lighted a 2009 tax and spend budget. I am writing with concern, not only as a contributing member of Citizens for Responsible Budgeting, but as a life-long, registered Democrat.
At the October 22, 2008, Board of Commissioners Meeting, Commissioner Jenny Brown attempted to set policy to guide the Township Manager as he assembles the 2009 budget. She explained that the Manager had sought non-public guidance on fiscal policy as to whether he should propose a budget with no tax increase or a 2% tax increase, and that she wished to give him public guidance. Her motion instructed the Manager to propose a budget with no tax increase, balanced with spending restraint and a drawdown of reserves to a level within the Board’s reserve target. Despite past verbal expressions of desire to restrain spending and taxing, when given a chance to act, the majority took a pass. The defeat of Brown’s motion sent a clear signal to the Manager for business as usual when it comes to taxing and spending. How does a party-line vote benefit taxpayers? It doesn’t.
As a non-partisan organization, it is not CRB’s role to divide the Commissioners along party lines. However, when they divide themselves along party lines, it is in the public’s best interest to know.
We witnessed such a divide on October 22nd. Voting in favor of the motion seeking a budget with no tax increase were: Jenny Brown(R), Lew Gould(R), Lance Rogers(R), Phil Rosenzweig(R), and Scott Zelov(R).
Voting against the motion for no tax increase: Jane Delheim(D); Brian Gordon(D); George Manos(D); Paul McElhenny(D); Maryam Phillips(D); Bruce Reed(D); and Liz Rogan(D).
Refusing to Vote: Cheryl Gelber(D).
During the discussion, Board President Bruce Reed even stated that he thought the Township should increase taxes MORE THAN 2% for 2009. When a governing body refuses to control spending, there is never enough. More puzzling, Reed articulated a new approach to local tax policy. To justify his preference for a 2009 tax hike, he explained that recent real estate tax hikes had been less than the inflation rate. Regardless of cash reserves and ability to reduce spending, Reed apparently believes annual inflation-rate tax hikes should be standard. By making the inflation rate the benchmark for real estate tax hikes, the only question will be whether real estate taxes go up more or less than the inflation rate. This is a very troubling and undisciplined approach to budget management and taxation and is an approach which assures spending will not be restrained. With annual tax increases benchmarked to the inflation rate, there is no incentive to ever restrain spending. If budgets are managed aggressively and dollars are spent efficiently, there should be no need for Bruce Reed’s annual inflation-based tax policy.
Prior to 2002, the Board did not raise real estate taxes for a decade. Since 2002, the Township’s annual rate of spending has increased dramatically. The current Board majority does not have the will to restrain the Township’s spending and that means the Township will “need” more revenue every year. In 2009, spending will go up unrestrained and either real estate taxes or the solid waste fee will be increased to meet the spending demand. Until there are enough Commissioners committed to restraining spending, we can expect that Board President Bruce Reed will make sure that our real estate taxes are increased every year.
Michele von Plato (D)
Citizens for Responsible Budgeting
www.lmcrb.com