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Vanishing revenues give city the budget blues
Gray’s proposed tax hike seen as only way to make up for shortfalls
Intelligencer Journal
Dec 02, 2008 00:50 EST
Lancaster
By DAVE PIDGEON, Staff Writer

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QUOTE (solitary @ Dec 2 2008, 09:12 AM)
I'm just some idiot with a minor in business, no government office experience (although I worked in the public sector for a while), no experience in health care or insurance and no experience with collecting taxes.

I have a few suggestions. Fire the insurance company, go with individual health savings accounts and get a group rate for catastrophic expenses, the employees are paying for their own preventative care plus administration costs, so why not fire the middle man?

Second, pay the city employees less. Wait, I have something to make them happy about it. Exempt them from paying local taxes if they live in the city.
This way they pay a little less in state and federal taxes, no local taxes, it encourages them to live in the city which cuts their costs if they take the option and it reduces administrative expenses of collecting and redistributing local taxes that was paid by the city to the employees and then taken back.

Lastly, seriously evaluate the middle management of the city, I hate to say lay off people, but it's for the best, the middle management is typically the most bloated, higher paid, least required staff. They'll find other jobs. I know that's not what some people like to hear, but it's needed.

Health insurance is negotiated for union employees (police and fire make up the vast majority of the City's payroll), and there are State regulations involved which severely limit what the City can do.

Middle management IS being evaluated very seriously. Many of the 22 positions which have been eliminated would fall into that category.
Artie See
QUOTE (Artie See @ Dec 2 2008, 07:40 AM)
At the same time, Lancaster City is collecting less tax revenue. A number of businesses have successfully appealed their real estate assessments. On top of that, a huge amount of formerly taxable prime commercial property has become tax-exempt: the lot where the new police station was built, the RRTA bus terminal, the art museum and parking lot at Queen and Chestnut, 150 N. Queen St., the expansion of the Academy of Music, the expansion of the Pennsylvania School of Art and Design, the parking garage in the 100 block of E. King St., nearly the entire half city block between Queen, King, Vine, and Christian, and quite a few properties along College Ave., among others.

I forgot to include the baseball stadium site, the new YMCA building, and the empty lot next to the new police station.

Are there others anyone can name?
Artie See
littledutchboy
Health insurance is negotiated for union employees (police and fire make up the vast majority of the City's payroll), and there are State regulations involved which severely limit what the City can do.

Middle management IS being evaluated very seriously. Many of the 22 positions which have been eliminated would fall into that category.


For decades the Cities unions, FOP, IAFF, AFSCME have negotiated in good faith . Year after year the City claimed that they couldn't afford more wages. To make up for that the City always threw bones to it's employees. How about an extra vacation day? Calculating that many of the employees wouldn't be eligible for that benefit for some years . The city offered health care years ago as an alternative to higher raises . Each negotiation the unions asked for and often received some increase, some improvement in benefits. Many years the unions took paltry raises to keep benefits already gained. For years the City benefited disproportionately to it's employees . Now as some would say, the chickens have come home to roost . The employees have something that the City can no longer afford and they want to whine . If the City really feels that this is an undue burden . Maybe they should offer each employee a rebate of what they could have received at each negotiation had the unions gone for wages rather then taking increases in health care . If costs have increased as much as the City says to where each employee is costing 19 g's per annum then maybe the City should give each employee 19 g's as a raise and forego providing health care. I suspect many of the employees could find health care for far less then the City pays.
As to what prior administrations have done. The nail was struck directly on the head when grants were brought up as a partial cause of todays woe's . The administration involved knew very well what they were doing. When the former Fire Chief, Pierce approached the City about receiving and using grants to hire additional firefighters he was told rather bluntly. That it would be a unfair financial burden that the City couldn't afford in the future once these funds dried up . In a act of benevolence and caring the administration claimed that they couldn't in good conscience hire someone that they knew would become a financial burden , that they would eventually need to eliminate , etc. Yet that same administration hired what ,50 Police Officers because as they claimed "the citizens were willing to bear any burden or costs for Police protection" and it was at the citizens bequest that they would seek funds anywhere and anyhow w/o a thought to future consequence to bring on these additional Police .
The City Hall has created this mess on it's own and now it's time to ante up.
They also need to reign in their agencies and face the fact that while they may be heavy in middle management they are gaining too much weight at the top as well. While they are continually losing weight at the bottom . Suffice it to say that Chiefs have never fought a battle . The braves do . Maybe it's time to eliminate some of those top branches. To prune the tree without harming the bark to make the whole tree healthier.
talonsfromheaven
QUOTE (Artie See @ Dec 2 2008, 07:40 AM)
Both of these were posturing, nothing more. "Voluntary compliance with the Kyoto Treaty" has not cost Lancaster City taxpayers not one cent, primarily since it really hasn't made any real difference in how the City operates. And no hybrid vehicles have been ordered: all Lancaster City vehicles are ordered through one of several purchasing cooperatives, which put specifications out to bid on behalf of many different municipalities. This means Lancaster City will always pay far less than list for any vehicle it purchases.
Thanks for the correction. I read that in the paper and thought it was a done deal. Silly me.

QUOTE (newsjunkie @ Dec 2 2008, 08:25 AM)
But see, Nativeson REALLY wants the problems in this country to be because of environmental regulations...he brings it up, unfounded, on threads ranging from the country's financial crisis...from the mortgage meltdown to our city budget...SEE It must be that these things are happening because those pesky environmental regulations are at the root of all our problems....None are so blind as those who will not see...

The other components politicians and business leaders will talk about. This one? Not so much. There is a price tag and we have no idea what it is.

QUOTE (solitary @ Dec 2 2008, 09:12 AM)
I have a few suggestions. Fire the insurance company, go with individual health savings accounts and get a group rate for catastrophic expenses, the employees are paying for their own preventative care plus administration costs, so why not fire the middle man?
With as easy as it is to be interconnected with people all over the world why would people continue to rely on insurance companies to connect us financially to cover medical expenses? It's time to think outside the box as you just did. If you really want to supercharge the creative juices read the update version of Ben Franklin's biography as he and his friends were as innovative as we need to become.
Nativeson
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