By Dave Anderson:
Over the weekend, my family received a flier from our borough government that there is a special borough meeting on Wednesday night. The subject of the meeting is fiscal contraction. The borough's revenue is falling significantly short of expectations and the debate will be on what services to contract or cut.
The town provides good police, a hybrid paid and volunteer fire protection, code enforcement and an independent streets/park department. The major locally controlled revenue streams are a 1% income tax and local property taxes. The borough also receives a portion of the 1% county sales tax and significant pass throughs from the state government.
Last year, the budget was balanced through a combination of draining reserves and stable state-pass through funding. Several municipal employees also retired and those positions were either not filled (which decreases state funding for pension payments) or filled at a significantly lower pay-scale. Those measures are not available this year as the state budget is likely to be further cut and the ARRA Medicaid reimbursement bonus rate that floated most state budgets to bad instead of horrendous is phasing out shortly.
My preferred solution is to contract for fire coverage with the city of Pittsburgh for at least the western portion of town, and with Edgewood for the eastern portion of the borough, as well as entering talks to merge police functions with Edgewood. I'm personally willing to pay more in taxes as I am generally very happy with the level and quality of town services (for instance, when we received 30 inches of snow last February, the borough was plowed out within 60 hours while Pittsburgh was not plowed out for 2 weeks.)
I'm not sure what the solutions the borough council will present on Wednesday night. However, I know that lay-offs are likely to be a part of all the presented options and that similar discussions will be occuring in the next nine months in thousands of small municipal governments across the country.
Forget two weeks, my street in the South Side never got plowed. We just had to wait for it all to melt away.
ReplyDelete