We obtained a copy of Denton Butler’s letter to the Board of Finance members which he sent to them on April 11, the day before the BOF members met and settled on a 0.92% tax increase for the Budget for the 2011-12 Fiscal Year:
TO: Board Of Finance
FROM: D. E. Butler
DATE: April 11, 2011
I would like to ask every member of the BOF, every proponent of the budget (as it stands), as well as those who oppose the budget, to contemplate this statement: Not once during the current budget making process, regardless of the entity that submitted a budget, did you hear any of the following:
“We should consider this alternative approach” – “We propose to attempt the following.” – “We have a novel idea that will lead to a reduction in the cost of doing business.” “We’re willing to sustain our current costs, at the very least (or) rollback costs to lessen the burden placed on the taxpayer.”
Instead we heard:
“Our children will be denied.” “We can only retain the best by paying the most.” “There’s no way we can cut costs.” “How much longer can we attempt to have a zero based budget.” “The potential for educational cuts that will dramatically impact next year’s program.”
I think the emotional based responses came to the forefront rather than the reality of … how much longer can your family and mine afford to sustain a model that calls for tax increases ad infinitum? I think that ship has sailed.
I recently prepared a tax burden analysis. (See below.) It is an over-simplification and it under reports the demands of the current New Hartford taxpayer. Simply stated, it’s oppressive. Knowing that the State budget as well as the Federal government will put additional tax burden on taxpayers – the question is simple – When are you going to say NO and when are you going to say I want to see your plan for alternative approaches that yield the same results or better at no increase in cost? For those of you, who are working stiffs, isn’t that what the business that you work for, the business that must compete, has demanded every year? Isn’t that what you do with your own household budget?
BTW – Since preparing my tax analysis: Gas has gone from $3.33 per gallon to $3.93 and with it the gross receipts tax has gone from $.19 cents per gallon to $.23 cents per gallon (and it will be adjusted upward next month). At the same time the surcharge on electricity, which took effect Jan 1, 2011, brings taxes and fees (non-electric costs on your electricity to 38% of your bill.) Food and other purchased goods are skyrocketing in cost. Just ask the shopper in your family.
Now for the part that I consider an abrogation of the BOF duty. Please don’t insult the taxpayer’s intelligence with a bogus tax collection rate, versus the real collection rate and the excess collection over the state’s requirements for a reserve.
History will show the actual collection rate for the past 10 years (source New Hartford Tax Collector) exceeds your estimates annually. Accordingly, we have had more taxes collected each year than is required to sustain the budget, resulting in over-taxation, but less credited so that the BOF can use it to lessen the subsequent year’s tax increase. This specifically allows agencies to continue to increase their budgets and then subsequently the cost to taxpayers.
To quote Einstein: “We can’t solve problems by using the same kind of thinking we used when we created them.”
So, if you decide to give in to the urge for an increase this year keep this in mind – things aren’t getting better; nobody’s tax burden has been lessened and you’ve set the stage for business as usual next tax season. However, in my opinion, you will not have morally or ethically done your job, even though you may have met statutory requirements. Further, I promise to be an even bigger pain in your backside next year. Trust me, neither my neighbors nor I will be looking for a ZERO budget. Like Wal-Mart, it’s rollback time.
Bud Butler
‘Where Does All The Money Go’ Presentation
Denton Butler illustrated for the BOF members how a $62,000 income is reduced by taxes at the Federal, state and local level, to an after-tax income of $35.065.95 from which housing, transportation, food, child-related expenses, insurance, retirement savings must be deducted. A powerful – and sobering – illustration.
Download Denton’s 11-page presentation: Where Does All The Money Go? by Denton Butler (192).
Below are two compelling pages of the illustration, pages 9 and 10:
Many Thanks to Denton Butler for providing the answer to a question asked many times in the NewHartfordPlus Crew’s home.
