LETTER: Three Questions, Three Unnecessary Taxes
A letter to the editor from West Newton resident William Hobbib.
President Calvin Coolidge once said, “Collecting more taxes than is absolutely necessary is legalized robbery.” That’s how Newton residents should view the three question override vote on Tuesday.
The unanswered questions about tax hikes that could cost the average taxpayer $5,000 to $10,000 over ten years should leave all residents with the conclusion that the taxes are unnecessary.
1) Why are the Newton schools more than twice the cost per student of other elementary schools in the state? The new Angier elementary school will cost $37 million for 465 students, and Cabot elementary school will cost $47 million for 450 students, or a combined cost per student of $91,000. Yet Burlington built their new elementary school for $16 million for 500 students ($33,000 per student) and Hingham built theirs for 611 students for $25 million ($41,000 per student). Hingham's educational spending per student was 32 percent less than Newton's educational spending per student in 2011 yet both cities saw similar MCAS test scores. Do you want to pay more than double the cost for a building if it is not absolutely necessary?
2) Why is the cost of education in Newton increasing at 5 times the rate of enrollment? Newton public school enrollment increased 8 percent from 2003 to 2012, but education spending increased 39 percent during that same time. Why is it absolutely necessary to pay even more in taxes for education, when the city cannot today maintain expense growth proportionate to enrollment growth?
3) Why is Newton not reducing annual salary increases for city employees to lower expenses? The Boston Globe reported that the number of Newton employees taking home annual paychecks above $100,000 climbed by 8 percent in the past four years, and total pay for high earners ballooned by $2.7 million. If salaries rose 1 percent instead of 2.5 percent the City would save $11.9 million in annual spending over three years. Why should taxpayers pay more out of pocket to fund these unnecessarily high salaries?
4) What could the city do if voters reject the Prop 2 ½ override? Live within its means. All of the tax money that was supposed to be spent on roads, buildings, and infrastructure over the recent years has apparently been spent elsewhere, so if the city needs more money, they should look for it “elsewhere.” One place to start—the 80 percent of city expenditures that go to employee salary and benefits. Union contracts currently give City workers better healthcare and pension benefits than private-sector workers. Why should taxpayers pay more to fund salaries and benefits that are not absolutely necessary?
5) Does Newton really have a problem that requires more tax revenue, or does the city need to simply spend less? From when the last override passed in 2002 until 2012, Newton’s general fund revenue increased 43.5 percent, while expenditures rose by 46 percent. If Newton’s spending had grown by only 2.5 percent annually, the City’s spending would be $36.6 million lower than in 2012. Do you want to pay more than is absolutely necessary in taxes to keep feeding the spending problem?
In the absence of answers to the above questions, voters should conclude that the City of Newton wants to collect more taxes than is absolutely necessary, which is a form of legalized robbery. Is that what you want?
--William Hobbib
West Newton, MA
sg
2:56 pm on Sunday, March 10, 2013
Excellent points!! Parents are being bullied into this for the kids and schools. Newton can come up with the $ other ways
Stephanie
4:03 pm on Sunday, March 10, 2013
Some students require special services - OT, Speech, aides, and that also adds to the cost. Newton (as with every public school) is required to provide these services to the children that need them.
Liljoe
9:34 am on Monday, March 11, 2013
Thanks for clarifying the issues for the voters.
Suzanne Rourke
10:46 am on Monday, March 11, 2013
Bill Hobbib makes a great point about Newton extravagance. It lurks beneath even the reductions in spending growth made by our capable Mayor. The Mayor seems to cut in the hope of "earning" higher taxes from us. We want him to cut until the City needs no tax hikes.
Concerned Citizen
11:38 am on Monday, March 11, 2013
Many good points and at the end of the day, more questions than answers. The questions are poorly written and that is also a concern.
Norman Wirtz
3:25 pm on Monday, March 11, 2013
Outstanding explanation of many of the questions that should be answered and resolved before we agree to pay taxes in excess of the allowable increases under Prop 2.5. In other words, the budget has increased by $7.63 million from 2012 under Prop 2.5. But the mayor thinks we need $11.4 million more!!!
How about eliminating the $1.25million of longevity bonuses for the union employees? I have asked an Alderman to explain what these are and how are they calculated and do they continue to create value for the city,
Ryan McGlothlin
4:04 pm on Tuesday, March 12, 2013
"2) Why is the cost of education in Newton increasing at 5 times the rate of enrollment? Newton public school enrollment increased 8 percent from 2003 to 2012, but education spending increased 39 percent during that same time."
I think there is a fundamental failure to understand basic math here. Even if enrollment were flat from 2003-2012, costs would still have gone up materially given inflation. Consumer Price Inflation (CPI) over this period averaged 2.1%. Enrollment increased by 0.7% p.a. on average. Combined, the expected rate of increase would be 2.82% p.a., leaving us with an "expected" increase of 32% over the period. Yes, the actual cost increase was 3% p.a. rather than 2.8%, but this is hardly "5 times". It is also less than I would have expected given the cost increases seen in education over the period. Inflation in the cost of education ran 4.9% p.a. from 2003-2012, or a 70% increase. Seems like Newton schools (and perhaps public schools in general) might be more of a bargain than some would care to recognize.
You can check these facts on the website of the St. Louis Federal Reserve Bank: http://research.stlouisfed.org/fred2/.
Moving Newton Forward
4:16 pm on Tuesday, March 12, 2013
Actualy Ryan, the actual cost increase increased by just under 3.75% during that 9 year period.
The cumulative increase was 39% versus an inflation adjusted enrollment adjusted expected increase of 28%
Ryan McGlothlin
8:41 pm on Tuesday, March 12, 2013
I am assuming 10 years, not 9, in the calculation. It is not clear from the original post which dates to use (I assume 1/1/2003-12/31/2012). Even if you assume 9 years and an "expected" increase of 28% based on general CPI, education-related inflation ran at almost 5% p.a. over the same period and is probably a better comparator than general price inflation. It also ignores that original poster's entire line of reasoning is flawed (5 times higher, etc...).
I am not saying that we should absolutely raise taxes (I don't like them any more than the next guy) or that schools and governments should not be held accountable (they should), but when people use poor logic to make arguments it dilutes the message.
Geoffrey N Epstein
4:27 pm on Tuesday, March 12, 2013
Here are some corrections to the major errors in the piece starting this thread:
0. The median property tax increase will be $343, which over 10 years totals $3,800, not $5,000 to $10,000.
1. The Burlington school cost $29 million completed in 2012, which is comparable to the cost estimate for Angier adjusted for it completing in 2016.
2. If the student population did not increase, you would argue that education costs should not increase either. That leaves out inflation which is the major factor! Ryan McGlothlin is totally correct on this.
3. Our salaries are market driven. The vast majority of salaries are way below the $100K quoted.
..
[I have concluded that MNF on other threads is William Hobbib]