Now it’s “Where’s the Answers?”

At the Laconia City Council meeting on Monday, March 10^th during the City Manager’s Report item on the agenda there was more discussion about the Belknap County budget and the Public Hearing. This was reported in both the Citizen of Laconia and the Laconia Daily Sun. (click this link to view the March 11^th edition)

If you read these articles you can easily see that nobody on the council feels we received adequate answers to our questions about why the revenues are so short. It is getting quite frustrating for us and, I imagine for others in the county.

If you have read any of the blog debate (Post 1 and Post 2) I am having with Skip Murphy at Granitegrok.com or any of my previous posts or responses (Post 1, Post 2, Response 1, Response 2) on this subject you will know that this is a subject very dear to my heart. The TAXPAYERS can’t afford double digit increases in their taxes and we in Laconia have let it be known by passing the Spending-Tax-Cap. The problem is that this increase at the county level still affects us because even though this increase will not be passed onto the property taxes raised, the city still has to pay the county. This reduces the funds available for operating the city and schools. The county increase (10.417%) is greater than the reported CPI-Urban rate of inflation increase (2.9%) by over 3 ½ times.

My friend Skip has concentrated a lot of his effort on the expenditure side of the equation and I don’t disagree with his assertion that the county expenses should be trimmed and kept in check. My issue is that this problem was stacked on the revenue side of the equation and a lot of the blame has been indirectly placed on HB2.

The reason I see the revenue side of the equation as the most important part of the county budget is that the spending on Medicaid/Medicare programs, especially the Nursing Home, will far outpace any other spending going on in the county budget. These programs are set up as a Federal Cost-Sharing plan requiring either the state or local government to pay 50% of the costs. Skip argues that this is only “account transfer” that is paid by the taxpayers, which is true. The problem is this is the program we were dealt by the feds and the feds don’t care who pays the non-federal share. Thus HB2 comes into play.

Councilor Lipman predicted that in coming years, care for the elderly is not going to carry an annual inflationary factor of less than high single digits. The entire council agreed the city cannot handle those kinds of numbers and stay within the local property tax cap without significantly impacting city services, including schools. Mayor Matt Lahey said “At some point it’s going to go beyond our ability to absorb it,” which I think hits the nail on the head.

As Ed Engler reported in the Laconia Daily Sun:

“The tax cap covers everything passed on through property taxes, including the city’s share of running Belknap County government in general and the Belknap County Nursing Home in particular. And the city’s 20-percent share of that bill for 2008 is going up $164,000 more than is being allowed, proportionally, under the cap. The difference will have to me made up, for fiscal year 2008-2009, out of city and school spending plans and City Manager Eileen Cabanel indicated she will recommend that additional burden be split 50-50 with the School District.”

City Manager Eileen Cabanel stated “We seem to be getting different answers from different people on HB-2” and Mayor Lahey added “We really couldn’t get an answer” to any of the questions we were asking.

The Mayor has spoken with Senator Kathleen Sgambati about this and she volunteered to come to a council meeting to explain the way the bill is supposed to work. Mayor Lahey is going to ask Sen. Sgambati to attend the next council meeting on Monday, March 24^th at 7:30 PM. She will also bring Senator Lou D’Allesandro (D-Manchester) and at least one official for the state Department of Health and Human Services with her.

I would everyone to attend this meeting to show support for our position that costs are being unfairly passed on to the property taxpayers. My feeling is that Mayor Matt Lahey will allow some questions from the public during this debate. If you are unable to attend then I would encourage you to forward any questions you may have to myself, the Mayor or one of the other council members.

LET’S GET THE ANSWERS WE DESERVE!!