The Budget

Although there's plenty to talk about on the First Amendment front, we're going to take a break from that to discuss the town budget.

I ran on a platform of, among other things, fiscal responsibility. Fiscal responsibility doesn't mean that we don't spend money, just that we justify every dollar requested and account for every penny spent. It means that we cut the budget as much as possible before we increase taxes.

Thus far, fiscal responsibility has eluded Falmouth. Here are just a few examples:

The Dump
Abrasive and politically incorrect, gadfly Marc Finneran nevertheless makes good points. Before he was shut down by the chair for getting personal with Town Manager Robert Whritenour, he noted that the dump has huge potential as a source of revenue.

Earlier this year, the Board discussed RFPs for our trash collection contract and - potentially - the privatization of the dump. Privatization was taken off the table in part because DPW Superintendent Ray Jack stated that he could make the dump break even or turn a profit, "in a heartbeat."

More than a few heartbeats have passed since then, and we are still waiting for that profitable dump.

Sewer rates
No one likes to increase the cost of anything, least of all me. However, some of the services the town provides have costs which can and should be borne by the users of those services.

Once again, it was just this past spring when we discussed increasing the sewer rates. Back then, we were told that sewer rates were being subsidized by the general tax base, but there was no need to increase the rates at that time because the budget could absorb this cost. It was suggested that the Board revisit this in August.

It's August and the budget is now at least $1.5 million in the red. We need this item on the agenda.

Budget Growth
During the budget workshop last week, Mr. Whritenour noted that our FY2009 local receipts (i.e., excise taxes and other revenues unrelated to property taxes) were at 2005 levels. Indeed, those reduced receipts have contributed to a $1 million budget shortfall for the FY2009. Projecting this into FY2010, we need to lower our revenue estimates by $1.6 million.

This revelation prompted me to ask for a line-by-line comparison of our 2005 spending versus our 2009 spending. If our income has been rolled back to 2005 levels, it only makes sense to roll back our expenses to 2005 levels. While there may be some expenses which cannot be cut back (for example, health insurance costs continue to rise), this comparison should at least provide a starting point for making cuts.

Out-of-state Travel
Yes, I am going to revisit this issue. There is no logical justification for out-of-state travel if the need for that travel can be done less expensively in another manner (e.g., training is available online or via correspondence courses), especially when we have a $1.5 million deficit. There will probably still be some out-of-state travel as some departments (the police department comes to mind) must travel to New Hampshire or Rhode Island for very specific training. However, to travel halfway across the country to renew a certification that can be done at your desk is an inappropriate use of public funds.

Libraries
All three of the town-owned library branches (Main, North Falmouth and East Falmouth) suffered cuts in hours this past year. In contrast, the privately held and funded West Falmouth and Woods Hole libraries had no such cuts, yet the town continues to give these libraries public funds. We know what the town's balance sheet looks like, what about these organizations?

For that matter, any independent organization that receives town money should be required to submit financial reports.


These are just the topics from the top of my head. I'm sure someone could come up with more.

With all that in mind, on Monday night I voted against putting two articles on the ballot for local options taxes. One is for an additional 0.75 percent tax on meals, the other for an additional 2 percent on rooms. If Falmouth adopts these measures, it is estimated that we could net approximately $1 million per year.

Now for some reality. That $1 million figure is an estimate based on Massachusetts Department of Revenue figures from 2008. Remember, that was before the state increased the sales tax from 5 percent to 6.25 percent. Now we are suggesting that for meals we raise that figure to a full 7 percent. Do you really think that those estimates are going to hold up after the taxes get raised by 2 percent?

In fact, they won't. Every time you increase taxes, there is a corresponding reduction in the use of whatever is being taxed. In the late 1980's the federal government levied a luxury tax of 10 percent on certain items. In response, the folks who purchased those luxuries stopped buying such that a number of businesses went under. That tax was repealed because it raised unemployment more than revenues. Likewise, cigarette taxes keep climbing, raising the price of cigarettes and causing more people to quit, thereby reducing the tax revenue.

Until Falmouth develops some fiscal responsibility, I am not going to increase any taxes.