An Unsustainable System

To the Editor:

The following opinion is my own and does not necessarily reflect any other member of the Board of Finance. On March 8, I cast one of the two No votes on passing along a 2.68 percent increase to the Legislative Council, which is more than $2 million greater than last year’s budget. The reason was simple. We can’t afford it. We can’t afford to continue to pass along huge cumulative spending increases as in the past nine years, especially when the metrics of the town measured by population growth, student population growth, inflation rates, declining real estate values, high unemployment, and a massive state income tax increase don’t support it. The exact opposite is true; spending should be cut this year until private sector growth catches up.

While I agree that many of the problems stem from a dysfunctional state government (with billions in unfunded pension liabilities) and whose irresponsible behavior has been bipartisan in nature, Newtown has some self-inflicted wounds of its own. Our total education salaries have increased by 43 percent since 2002 and the benefits by a whopping 89 percent. Does anyone think that this is sustainable when the student population next year is likely to be exactly what it was nine years ago yet the expense of running the school system will be almost $24 million dollars per year more? Most people’s salaries, if they are fortunate enough to be employed, have not even matched inflation, yet total education spending is occurring at over twice the inflation rate. It is no longer financially possible to have roughly 80 percent of the school budget (salaries and benefits) exempted from significant cuts.

What strikes me as most cruel is the fact that home prices are plummeting, yet the taxes on those very homes are increasing. Naturally, fixed income seniors are hurt most in this scenario and are facing a third straight year of zero cost of living increases to their social security. So too are unemployed Newtown residents who are also asked to pay more to support a system that is structurally flawed. To be fair, there are several town side expenditures that have grown considerably but by far, the greater increases lie within the school system, which has increased by a total of 50 percent compared to the inflation neutral 21 percent increase on the town side budget.

The definition of an unsustainable system is one whose expenses continue to grow despite factors which should put downward pressure on those expenses. If this trend continues, our children will be unable to live in the town they were raised (some would argue they already can’t), and subsequent years’ budgets will require layoffs by the dozens because we refused to alter course. While I have enormous respect for all the volunteer members of the various town boards, it’s simply amazing that we may yet again defer necessary and fiscally responsible action. I urge the Legislative Council to reduce the increase to a maximum of 1.5 percent or less.

Joe Kearney

9 Daniels Hill Road, Newtown                                     March 31, 2011