Time To Change

Our Town’s Financial Model

To the Editor:

As the world around us is changing at a rapid pace, we too must change. Our current town government financial model worked well for several generations, however today it is a yoke about our necks. The next budget proposal is a whopping $108 million dollars... almost 2.5 percent more than last year… we have to vote No!

Let me be clear, I want everyone who depends on that budget for their jobs to prosper. You are my neighbors and friends. However, tax more and spend more is broken, and it can’t be fixed to work in today’s economic reality. The world is flat! We are now locked into global competition and as a result, our earning power here in the US has been noticeably eroding for more than a decade.

It is, at best, unimaginative for us to ignore economic reality and to adhere to the old system of raising taxes on citizens earning less and with less discretionary income. If we extend that model far enough into the future, citizens will have no discretionary spending choices to make as town, state, and national taxes will claim all our income and that still will not be enough...think Greece. At what point or when do we begin to reduce taxes or even freeze taxes?

Is there a law against lowering taxes? Well, actually there is. It is popularly referred to as the Minimum Budget Requirement or MBR. Simply defined, it is a state law requiring school budgets/spending to be at least equal to the previous year of spending… without exception. Again, I suggest you refer to Greece for where that mindset eventually takes us. Tax and spend just does not work anymore as the citizen cows have been milked dry.

What are our options? First, we have to agree that the old model is broken. It is no one’s fault. Our town leadership is performing a tough job quite well. Unfortunately, the environment has changed. We need to respond and now is much better than later.

We need a new financial model — one that builds and grows town revenue. There surely are several ideas that might lead us to a solution. One commonality to all effective ideas would be the development of an environment, throughout our community, that invites and supports new businesses and overwhelmingly supports those businesses we already have in Newtown… buy it in Newtown if you can.

We need to engage this and other ideas and push to rapidly adopt a new financial model that is workable and sustainable... one that is built on growth in the economy and not on an ever-increasing citizen tax burden that surely will collapse at some point in the future. The first step may have to be taken to a new solution by forcing a change. Vote No in the upcoming tax referendum until a zero increase in taxes is on the ballot. Send a message that we want a new financial model for our town. No more tax increases on the citizens of Newtown!

Larry Richardson

28 Jeremiah Road, Sandy Hook                                                                      April 4, 2012