Cut the Tax Rate Now-The Lehigh County Reform Team Plan

8/4/2019 Cut the Tax Rate Now-The Lehigh County Reform Team Plan

1/5

Instead of Don Cunningham's One-Time $30 Tax Credit

Scott Ott, Vic Mazziotti and Lisa SchellerYour Reform Team for Lehigh County Commissioner

Cut the Tax Rate Now

1

Call on the sitting commissioners to

Put More Unemployed Tax Dollars

Back to WorkInject $10 million Back into Local Economy.

Force Executive to Justify Future Tax Hikes.

Its time to change the conversation at the County Government Centerto match the conversation at kitchen tables throughout Lehigh County.

Paid for by My Lehigh County PAC, P.O. Box 3012, Allentown, PA 18106. http://MyLehighCounty.org


2/5

Return $10.07 million to the local economy.

Set new lower tax rate of 10.75 mills (instead of 11.9)

Slash last year's tax hike by 69 percent.

Cut average tax bill by $69/year.

Move Idle Money from County Coffers in 2012

million from Tax Relief fund, now slated for one-time tax credit.

$ 3 million operating surplus, now slated for transfer to reserve fund.

$ 1 million in gaming funds, now slated for transfer to reserve fund.

$ 1.7 million in land sale proceeds thats unassigned or slated for park improvements.

$10.07 million

STEP ONE: Transfer the following to the Operating Fund.

STEP TWO: Set the tax rate at 10.75 mills, down from the current 11.9.

$ 4.37

2



3/5

Myths & Facts About Reform Team Tax Cut Plan

Myth:

Fact:

Failing to boost the Tax Stabilization fund to $25 million will violate GFOAstandards and jeopardize our excellent bond ratings from Moody and S&P.

The county's reserves (about $20 million) are already within therecommendations of the Government Finance Officers Association (GFOA),and our bond rating will not be affected. In addition, that extra moneybelongs to taxpayers, who often have scant reserves, and who desperatelyneed to use their hard-earned money at a time like this.

Myth:

Fact:

You can't reduce the tax rate by making 'one-time' cuts in expendituresor reserves.

Not true. The tax rate can be increased or decreased as long as the budgetis balanced. [Article VII, Sec. 704(a) Lehigh County Home Rule Charter] Thesuggested cuts don't come from basic operating funds, but from unneededextra reserves and one luxury item.

3



4/5

During tough times, county government needs more money since the

neediest in our community depend upon it for human services.

The Reform Team Tax Cut Plan doesn't touch human services spending.Fact:

Myth:

Myth:

Fact:

Residents at county-owned nursing homes would be impacted by a tax cut.

County-owned nursing homes actually generate a 'profit' for the county,supplying $1.7 million in net positive cash flow. This arrangement would

also be untouched under the Reform Team Tax Cut Plan.

4




5/5


Myth:

Fact:

If we cut the tax rate this year, we'll just have to raise it again next year.

The Reform Team Tax Cut Plan requires no 2012 spending cuts, and noreductions in current reserves. In 2013, the County Executive will need toimprove cost-effectiveness, reduce waste, and/or restructure the county tax-funded portion of the budget to avoid a tax increase then.

If he wants to raise taxes again, make him fight for it, justify every penny.

The Reform Team plan prevents 11.9 mills -- the rate established via last year's16% tax hike -- from becoming the new normal.

5


Cut the Tax Rate Now-The Lehigh County Reform Team Plan

Documents

Transcript of Cut the Tax Rate Now-The Lehigh County Reform Team Plan