‘Borrow And Spend’ Politics

To the Editor:

It has begun. The days of borrowing and spending beyond our means and are over. For individuals, corporations, banks and, yes, municipalities, credit has dried up overnight. Thank god.

Town borrowing is the equivalent of guaranteed taxation in advance. With the failure yesterday of the referendum on the additional $6 million, and a near certainty that Newtown will be unable to fund any or all of the CIP bonding it has on the table, fiscal conservatism may be imposed on the town by the credit crisis. The rating agencies are about to have an epiphany as to the credit worthiness of towns like ours. A draconian change in bond ratings and the inability to secure insurance will bring an end to “borrow and spend” politics. The state won’t have any money for the very same reasons. This is one way to stop the financial madness, and it will work just as surely as if the voters themselves did it.

No borrowed funds will mean no new town hall, no high school expansion, and none of the other “stuff” that we can’t afford anyway. Good riddance.

Eric Steinkraus

22 Walker Hill Road, Sandy Hook                              October 8, 2008