Lower Merion Citizens for Responsible Budgeting
Letter to Editor Re: Tax Increase Debate
May 29, 2007
As spokesperson for Citizens for Responsible Budgeting (“CRB”), I would like to acknowledge Lower Merion Township’s staff for their hard work on the 2007 Budget, and the Board of Commissioners (“BOC”) for the time spent debating the tax increase. CRB is a citizen’s advocacy group committed to supporting and promoting transparency and citizen engagement in our budgeting process. While we disagreed with the justifications of those Commissioners clearly committed to raising taxes, CRB was given a full opportunity to express our viewpoint. We do, however, suggest the process start earlier in the year and that more citizen participation be sought and encouraged.
CRB consistently argued that a tax increase was not needed, and therefore, was not justified for the 2007 Budget. Ultimately, the vote on Commissioner Rogers’ motion to eliminate the tax increase was lost. Commissioner Rogers is the BOC’s only registered Independent, and CRB was hopeful that his motion would bridge the partisan gap that had developed on the tax increase. Of course, CRB was disappointed with the party-line vote and defeat of the motion to eliminate the tax increase.
The debate served the public well for several reasons:
First, the debate revealed that there actually was no need to increase taxes for 2007 and that the tax increase was really about the padding in an already padded reserve fund, and possibly spending for an agenda not in the 2007 budget. As Cheryl Allison pointed out in her article (Lower Merion budget is decided along party lines; 12/27/06) “nearly all Commissioners and even [Township Manager Doug Cleland] conceded” that “no tax increase is needed to meet Lower Merion’s immediate budget needs”.
Second, the debate uncovered the fact that instead of the break-even year projected by the Township for 2006 (which projection supported the need for a $500,000 tax increase), the Township will end the year with a substantial surplus.
Third, the debate exposed the decision making process of the Commissioners. As one example; Cheryl Allison quotes Vice President Phillips’s acknowledgement of the School Board’s larger tax increase when she goes on to say that the BOC should not “use that as a rationale for what we need to do to keep the township solvent.” Why would a Commissioner speak of the tax increase as necessary to keep the Township “solvent” when we have over $10 million in our reserve fund?
Fourth, the debate identified cost containment and revenue enhancement as important initiatives on which future efforts should be focused.
Finally, the debate exposed a remarkable lack of consensus by our Commissioners regarding the Township’s reserve fund balance policy. A minimum fund balance policy was just established four years ago and, without the advice of the Township’s financial advisor, a majority of the BOC abandoned that policy. Clearly, the BOC must seek expert advice on the Township’s true reserve needs.
CRB looks forward to continuing discussions with staff and the BOC on 2007/2008 budget issues, and appreciates the expressed commitment of Ad Hoc Budget Committee Chair Cheryl Gelber to work on these issues. CRB hopes the New Year will bring greater clarity on our true reserve needs, greater consensus and less partisanship on the Board, and most of all, a better result for our taxpayers.
David O’Connell
Citizens for Responsible Budgeting