Budget Committee: August 2008 Archives

Officials at the local and county levels need to do more to cut the costs of government.

By Otis on August 30, 2008 7:23 PM | Permalink | Comments (0) | TrackBacks (0)

".......we hope that selectmen, school board members, county commissioners, city councilors and members of County Conventions will take a hard-nosed approach when it comes to proposals for so-called 'big-ticket projects' such as new buildings or proposals to add employees."

The Citizen

Article Date: Wednesday, August 27, 2008

Gov. John Lynch is calling for two kinds of budgets when a new Legislature convenes — tight and tighter.Republicans have been trying to weaken Lynch's big advantage in the polls by trying to identify him with the huge revenue shortfalls of the current biennium. So far it hasn't stuck. Voters seem prepared to identify the shortfalls with the weak national economy. Lynch met with department heads Friday and told them it's not going to be easy. He wants innovation and efficient use of limited resources. He also wants two proposals — one holding programs at current levels and one cutting spending by three percent in 2009 and 2010, going back to current levels in 2011.By assuming this posture of fiscal discipline, Lynch certainly set the tone for the fall campaign.But his approach should reach beyond the political debate of the coming weeks. It should also frame the discussion for the work of preparing budgets in the various cities and towns, school districts and counties across the state.
John Andrews, director of the New Hampshire Local Government Center, said in a story appearing in Monday's Citizen that the effects of the poor economy are trickling down to local communities. Revenues from motor vehicle registrations and building permits are down in many places, while the cost of health insurance, heating oil, gasoline and even asphalt for road projects are way up. Given the economic downturn, some town officials are looking ahead to next March's town meetings with the expectation that budgets will be held at current levels because residents can't afford higher taxes.To accomplish that, officials at the local and county levels need to do more to cut the costs of government.
Given the current economic climate, they can be assured that the majority of taxpayers will support them in this effort. To this end we hope that selectmen, school board members, county commissioners, city councilors and members of County Conventions will take a hard-nosed approach when it comes to proposals for so-called 'big-ticket projects' such as new buildings or proposals to add employees.Even at times as difficult as the ones we are facing there will be some cases where major capital improvements or adding staff is absolutely imperative. But for the most part these requests, though they may produce certain benefits, fall short of being absolutely needed right here, right now.
Just as importantly, those officials — whether elected or appointed — who have a role in determining pay and benefits for public employees need to demonstrate they understand the burden under which so many taxpayers are finding themselves. To advocate pay raises on the grounds that there have been pay raises in previous years is simply untenable. Public employee unions also need to acknowledge the present economic realities when they sit down to negotiate new contracts. To push for substantial pay raises or to be unwilling to accept proposals for members to pick up a bigger share of health-care benefits will only hurt their credibility with taxpayers with private-sector jobs who fear being laid off. In the last several years, local communities and school districts have been more or less successful in funding the higher cost of government by capitalizing on the volume of residential and commercial construction, which has produced a tremendous expansion of the tax base in many area communities. But the tax base is no longer expanding at the same rate, so any increase in the cost of government is going to fall harder on current taxpayers. Those leaders in government who recognize that they are the stewards of the resources that come from the people understand that this coming budget season presents challenges far different from any other year in recent memory. It requires taking tough stands and standing by those decisions. And it also requires a sensitivity that

the taxpayer's ability to pay is not as great as in past years.

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Rising costs, reduced revenues, tough choices

By Otis on August 24, 2008 8:27 PM | Permalink | Comments (0) | TrackBacks (0)

Note from the MCA: As many towns in NH struggle with upcoming budgets and rising taxes, we are still awaiting here in Moultonboro even a discussion of what we are doing or should be doing to keep our tax burden as low as possible and reduce not increase spending. Fellow citizens, we need to ask our selectmen and school board what they are planning to do and when will the Advisory Budget Committee meet?

MCA

By SHAWNE K. WICKHAM
New Hampshire Sunday News Staff

Sunday August 24th, 2008

As town and city officials begin putting together their budgets for next year, many face a Solomonic choice: Increase property taxes or cut services.And this year, with the economic downturn hitting folks hard in their personal budgets, some local officials say they'll choose the latter."It's very scary," said Fred Kelley, chairman of the board of selectmen in Candia. "We're working on the budgets here in town now and ... I know the people in this town of Candia are not going to be able to afford what we turn in. There's no money."He believes next March's town meeting is going to be tough. "I think there's going to be some people crying," he said. Donna Caron, town manager in Colebrook, says she can't imagine asking folks to pay more property taxes in the current economic climate. "We've got homeowners that are going to be losing their homes," she said. "We've got people working two or three jobs trying to make a living. They can't afford to pay higher taxes -- they just can't."

John Andrews, executive director of the New Hampshire Local Government Center, said the effects of a poor economy trickle down to the local communities. Revenues from motor vehicle registrations and building permits are down in many towns, while the costs of health insurance, heating oil, gasoline and diesel fuel -- even asphalt for road projects -- are way up. Andrews predicts many communities will have to increase welfare budgets significantly, with folks struggling to pay their heating bills this winter. Meanwhile, he said, the communities are seeing shortfalls in interest on their investments and capital reserve funds. "Towns are sort of like individuals and families," he said. "They have the same issues."...