Budgets

Two similar things happened during budget meetings in two different towns: Lehighton and Summit Hill.

In Lehighton, council member Dale Traupman questioned how the 2011 budget proposal can be based on property taxes that won't be collected; specifically delinquencies.

In Summit Hill, it was noted there is a substantial amount of property tax outstanding from last year. Council members wonder if the full assessment will be collected in 2011. It's virtually assured there will be many delinquencies again.

Borough budgets are based on the assessed values of property. The theory is that if a property owner is delinquent, the taxes will still be collected at some point either through a payment system, collection agency, or, in extreme cases, sheriff's sales.

The reality is that a figure is stuck in the budget and it could take years for collection of delinquent payments; not only property taxes but garbage collection fees and other taxes or fees for services that are imposed.

The dismal economy is resulting in longer delinquent lists in most local communities.

Traupman pointed out that because of the delinquents, the list of anticipated revenues in the borough isn't factual. Summit Hill Borough Council seems to share his point of view.

What happens is, by a municipality utilizing the anticipated revenue figures and then not collecting the revenue, an obvious deficit occurs by the end of the year. The problem is carried into the following year and without being shown on paper, that defict grows.

The deficit caused by this is not through the fault of any town treasurer. Nor is it the fault of any council member. It's merely a problem due to the way town budgets are established.

While 2011 budgets should have been at least tentatively adopted by now, officials not only in municipalities but on school boards and in other government should give thought to how they can create a more realistic budget figure.

Certainly prior delinquents have to be given considered in coming up with anticipated revenues.

It's no individual's fault that unemployment is occurring, that prices are rising, and that individual financial hardships are creating the same problems on homeowners as municipal and school officials face, thus resulting in many of the delinquencies.

The difference is that homeowners can't just raise taxes when confronted with bills they can't pay.

Any elected official dealing with public budgets must keep, in the back of their minds thoughout the year, ideas for reducing costs. Especially, though, they have to, in the future, produce budgets which are more realistic than have been occurring in the past few years; budgets which have not taken into consideration the major impact delinquents are having on them.

By Ron Gower

rgower@tnonline.com