Bob Goldsack and TU want to take sole credit for this year’s 0% tax increase.
What are the facts?
Cost per student has never been higher in DV history, now at over $12,000/yr for each student. Cost per student went up 2% last year.
So how did Bob keep taxes flat? Lucky for Bob, revenue from the State went up a whopping 14% from last year. What did Bob have to do with this? That’s where the real 0% comes in.
Bob was against Act I (State gambling money). He did not want to accept it. He did not ask or plan for that money. As reported on May 8, 2008 by the Courier, he accepted the gambling money he had vowed to turn away. We should thank him for that.
All other things equal, if State contributions had been flat, we would have had a 5% decrease in total revenue, which would have translated to a need to increase local revenues by 8%.
In other words, had it not been for the generosity of the State in the form of Act I money and some other minor increases, Bob’s plan would have resulted in an 8% increase in your taxes.
Property taxes were flat, but local revenues dropped by 9%. Anyone want to bet that they will be bigger this year? Bob?
We have seriously depleted our budgetary reserves. As reported in the April 24, 2008 Pike County Courier, Bob said:
"In past they’ve had too much in reserve and they’ve never used it to reduce taxes. We still have one, but not as much,”
Let’s see what happens this year under a shrinking tax base. Our reserves are lower than any time in recent history and we have spent half of the money we borrowed to build a new school without anything to show towards that school. We will need more of Bob’s lucky money this year.
There is potential for Federal stimulus money, but the State, which currently has a $3 billion shortfall, may drop their contribution accordingly. Can we count on another $3 million dollar last-minute gift again this year? I would not.
Like Bob, I would be happy to accept gambling money from the State.
Unlike Bob, I would not gamble with our own with unsound and irresponsible budgeting practices.
We need to determine our budget with funding that is certain. Our plan should not include getting an unexpected wheelbarrow of cash to bail us out each year.
As school board director, I will work to keep taxes low through indexing based on the cost per student. I will advocate for a more deliberative line-by-line budget process, including holding variance meetings throughout the year to make sure we are on track to meet our goals. I will also advocate for long-term 5-year budgeting so we are more prepared for challenges we will face in the future. I will advocate getting budget proposals well ahead of meetings so that directors can ask good questions of the administration and determine where money can be saved. I will get the details of the budget and the history of expenditures and revenue on the district web site for all to examine.
We simply can’t afford the Taxpayer United process anymore. That does not mean we have to raise taxes, but it does mean we need to restore sustainable fiscal discipline, lowering costs, not relying on State revenue and borrowing.
Bob, I wish you luck, I just wish we were not counting on luck. I propose we do the hard work necessary to maintain fiscal discipline.
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