Lower Merion Citizens for Responsible Budgeting
Township's Triple A in danger
July 16 , 2008
To the Editor, Mainline Life:
Identifying “options” to reduce Lower Merion Township spending is important; however, policymakers (the Board of Commissioners itself) clearly must also guide Township staff as to an acceptable level to grow the 2009 budget over the Township’s estimate of 2008 actual spending. Policymakers should set a target for staff to follow. When policymakers do not lead, the policymaking responsibility of Commissioners is surrendered to unelected staff.
Taxpayers must spend within their means. When wage growth flattens they tighten their belts and spend less. When inflation increases they tighten their belts and spend less. Yet the Board refuses to tighten the Township’s belt and continues to raise taxes as if the capacity of taxpayers is limitless. Driven by spending, Township real estate taxes have risen 46%, on a cumulative basis, since 2002. Commissioners have now reported that if nothing changes a double-digit increase is looming for the 2009 budget. This alarming rate of increase in taxes is not sustainable and threatens our quality of life, hitting young families and the elderly the hardest.
Unless the Board changes its spending and taxation policy the township’s AAA-bond rating could be jeopardized. A major factor in a bond rating is untapped taxpayer capacity- essentially the potential for taxpayers to pay more. The massive increase in taxes has seriously eroded the potential for taxpayers to pay more, especially in an economic slowdown.
To protect Lower Merion taxpayers and its AAA-bond rating, the Board must restrain spending growth. This will give overburdened taxpayers a breather and allow them to catch up to the tax burden the Board has imposed since 2002.
David O’Connell
Citizens for Responsible Budgeting
www.lmcrb.org