By Allen Hochberg, JD
This is not about a tax saving to Putnam homeowners of $25.00. It’s about the absence of devastating tax increases. Mr. Yarris says the County’s own legislature calls the funds mis-managed and refers to a State Comptroller’s guide holding excessive fund balances “poor budget practices” referring to $150M in unrestricted funds “sitting” there, with $80M of it unassigned. Blatant fiscal irresponsibility? I do not know if that is a lot or a little, or just right, whatever “sitting” there means.
With a Aa1 bond rating, a highest in the State, the important people, the ones who set the interest rates for the County’s borrowing, obviously see complete financial accountability of Putnam County. What does this mean for you? The County does not have to raise your taxes in order to pay its debt.
With regard to the $150,000 alotted to carry our social welfare agencies through an anticipated federally imposed emergency, which did not materialize, whatever was not paid out to the agencies, admittedly very little, went back into the $80M. It was money for an emergency. If there was no emergency, then why shell out the money just because it was “sitting” there. Pulling it back was financial responsibility, conserving the funds. Apparently, based upon the bond ratings, the office of our current County Executive knows what it is doing. Conserving.
Those of us who have, should have. Those of us who do not have, should also have, and not suffer. If, by our current “conservative” fiscal policies, not politics, we as a County are “rich,” then those in need have a resource to which they can turn. How much they can or should take from the well can be argued about, at least enough to insure some dignity, if not comfort.
If we move away from our current conservative financial agenda, it’s a slippery slope. If we violate the rule: Never invade principal, even figuratively, as in “The money is there, why not use it?” or worse “The credit is there, why not go into debt?” eventually we could end up like New York City in 1975, bankrupt and begging, when Gerald Ford told them to “Drop Dead.”
Mayor Michael Bloomberg, who is not stingy, being known for his philanthropy (love of mankind), got New York City through two financial crises, by building financial reserves, among other things, like raising taxes and increasing debt.
Responsible financial planning includes building financial reserves.
The members of any financially sound household in Putnam knows that there must be enough excess “for a rainy day;” that it is good to have a savings account, and maybe an IRA or 401K. And that it is not good to be paying 29% interest on credit card debt. This is not Wharton School of Business, rocket science.
In conclusion, I ask that we not become politically emotional about this, but look at the reality. We can tax and spend, or tax and save (and then spend).
We must be doing something right, to have one of the highest credit ratings in the State, or at least be tied for the highest.
If it ain’t broke……
Allen Hochberg, JD, Mahopac