More on the Maidencreek budget:
The 2009 budget is a continuing concern. With the spending cuts proposed, the budget looks OK, however, our emergency operating fund is going to decrease by about $60,000. But what are emergency operating funds for? It seems the biggest stock market decline since 1929 qualifies as an emergency.
How does a person measure the size of Government?
I've been thinking about
our local government, and how you could get a handle on it's size and
cost to the taxpayers. First let me say that financial matters alone
are not a good measure. You could have a township where the
supervisors pass ordinances enacting a virtual police state, but in
other ways are financially frugal. Such a township could get a good
score on a financial measurement, but the residents would still
consider their local government BIG and OVERBEARING. Recognizing
that money is not everything let's look at Maidencreek's actual
spending over the last 8 years. The budget numbers (except for 2009)
have had savings. I've subtracted out the savings in both Park &
Recreation and the general fund to see what we're actually spending:
Maidencreek's spending (the upper blue curve) has increased, but adjusted for inflation (the orange curve below the blue) the spending is nearly flat. The bump in year 2005 is major road work. The Maidencreek portion of Northern Berks Regional Police has increased significantly (the red curve) and the increase has even been larger than inflation (the green curve is police spending in Year 2000 dollars and it is increasing)
Do absolute numbers tell the whole story?
The police calls really
do increase with population. More people result in more calls which
in turn results in more police expense. So lets look at the per
person (per capita) spending Maidencreek does.
The per person numbers show that the inflation adjusted police spending (purple curve) is about constant (in year 2000 dollars) since our new chief took over. The inflation adjusted per person township spending (green curve) is decreasing. Yet we are still plowing the roads, building tot lots and parks etc. I think the quality of the services has not diminished. In year 2000 the township cost a family of 4 about $980 a year. In year 2008 the township cost a family of 4 about $740 a year (in year 2000 dollars) That's about a 24% reduction in the real per person cost of your local government. That number is the spending divided by the population. You may say that the government does not cost you that much, since your property tax (township portion) may only be $150 to $250 per year. However, the township gets 1/2% of your earned income, a good portion of the gasoline tax paid at the pump, and a portion of your state income tax and state sales tax (in the form of grants, pension subsidies, etc.)
Are the per capita numbers a fair measure?
You may argue that businesses pay much tax to the township, and this per person number unfairly includes the amount businesses pay. However, if you think about it, anything businesses pay gets passed along to the customers in the form of higher prices. Precisely how much Maidencreek residents pay is an impossible calculation. Residents of other communities help us with our taxes when they use our businesses, but we also help them with their taxes when we use their businesses. People in San Fransisco help Maidencreek when they eat certain canned or frozen foods. But people in Maidencreek help pay San Fransisco taxes when they buy Levi's. Since accounting for all the products crossing township lines (in both directions) is impossible, I would argue that merely dividing the spending numbers by the population is a good estimate. I have to confess that we only have accurate population numbers for year 2000, however, we can estimate the number of people by tracking the occupancy permits issues since year 2000. This method gives us an estimate of 7753 residents in 2004. The Reading Eagle had a 2005 article (by Rebecca VanderMeulen) that said our population was 7914 in 2004. So the occupancy permit estimate is about as good as we can do until 2010.
How are our residents doing?
The township receives
1/2% of everyones earned income (EIT). With these numbers we can get
an idea if Maidencreek residents are keeping up with inflation.
The above graph shows we are keeping up with inflation, and it suggests the population estimate based on permits is likely not too far off.
The bottom line:
Due to the efforts of past boards, this board, and township management, Maidencreek residents have a government that controls spending. The police spending has grown more than the rest of the government, and (in fact) the rest of the government has been forced to be more frugal to keep the overall numbers in line. However, the miles of roads maintained and plowed in the township have not gone up as fast as the population. Police time and calls will tend to be in proportion to the people, other expenses tend to be somewhat in proportion to the miles of road.
Free Book Offer:
Demand has caused me to order another case of books. I have copies of the Fredrick Bastiat book “The Law” available to Maidencreek residents. Email me if you want one.
Paid for by Roy Timpe
