The Budget And Cost Control

To the Editor:

Along with many others, I would like to take this opportunity to also congratulate the town on passing this year’s budget. I would also like to take this opportunity, however, to provide some thoughts for next year’s budget process.

After a few years of significant annual increases, I believe that the town government should take a hard look at promising now to maintain the 2005-2006 budget at the same level as 2004-2005. There will be many factors that will strain family budgets in the coming year. Rising interest rates will begin to cause substantial increases for adjustable rate mortgage holders. Inflation is expected to become a factor after many years of dormancy. Unless there is a dramatic change in world events, skyrocketing energy costs will continue to impact almost everyone in the town for both gasoline and home heating oil. And finally, a much-overlooked point in today’s economy is that most employers have reduced the annual pay raises to very low levels — roughly three percent on an annualized basis. Coupled with those on fixed incomes receiving low COLA adjustments, this means that incomes are not keeping up with expenses.

I look at the town government as a business and, like most businesses, there are cycles that take place. We as a town may have had to absorb additional costs for new schools, etc. But, there comes a time for most businesses where a hard look at productivity gains, better procurement policies and — as a last resort — cost cutting measures need to be made to stay competitive. At the very least, cost maintenance should be considered.

The next budget go-round seems like a long way, but will be here before we know it. I ask Mr Rosenthal and Mr Pitkoff to start considering cost control measures sooner rather than later.

Respectfully,

Guy Serra

7 Laurel Road, Newtown                                                 May 18, 2004