We will still need four votes to incur debt! This is HUGE! Four commissioners voted no. Dave Brumfield was the only commissioner who wanted to change it to three commissioners needed. Sorry, Dave.
Back in May I wrote to the Commissioners concerning local debt and their proposal to make it easier to assume it, pointing out that "...as far as Mt. Lebanon goes, projections concerning revenue and spending, while currently rosy, are really only valid for the short term." Mt. Lebanon, like any local government, is dependent upon the larger economy, and both Pennsylvania and the United States are deeply in debt. As I pointed out at that time, "U.S. and state debts may not seem like a major concern to you at this time, but should there be another major recession Mt. Lebanon may not be as "lucky" as it was during 2008/2009 - and you folks are not authorized to print money."
"With these things in mind I would caution this Commission to focus more on paying down debt and maintaining infrastructure in the Municipality, and less on projects that benefit only a minority of residents. I would also counsel against creating a situation in which simple majorities can increase debt. Remember, you will not always be Commissioners, and you may not like what future commissions have in mind. A "super majority" requirement is less likely to create the kind of "unintended consequences" that local elected officials fail to see."
"Super votes" are not without precedent; they are written in the U.S. Constitution, as well as the Constitution of Pennsylvania.
As we all know, a "super vote" to incur debt does not provide a guarantee to Mt. Lebanon taxpayers that our Commission will exercise fiscal responsibility, but it is a step in the right direction. My congratulations to the Commission for doing the right thing.
It was a MAJOR SURPRISE to see this go down in flames. In fact, I cannot remember ANY vote where Dave has not been able to garner ANY support, before this one. The taxpayers have retained a serious layer of protection against pet projects now, especially since there is no longer a fat "Unassigned Funds Piggy Bank" that can be broken by any of the Commissioners the next time the "Super Majority" votes just aren't there. We owe a debt (word chosen intentionally) of gratitude to the four who held their ground. Surprising...and refreshing.
As a follow up to my comments of 15 July, I believe the following video from the Reason Foundation featuring Peter Schiff entitled "Peter Schiff on Greece, Puerto Rico, and America's Looming Economic Crisis" is food for thought. There is no piece of real estate in the United States that is exempt from the basic laws of economics (or human nature). Mt. Lebanon cannot claim exemption from the consequences of too much national or state debt simply because Mt. Lebanon seems to have a solid financial footing. The debt to GDP in the United States is OVER 100%! Much of that debt was sold to foreign nations - especially China. Who on this Blog, or in this town, actually believes that Mt. Lebanon would be exempt from an economic crises should the USA default on its obligations? Does Mt. Lebanon have a municipal stash of gold in reserve?
I am one who does not believe that our Commissioners are evil people; but I do believe that they are "true believers" in their own political philosophies, and that those philosophies are grounded in a kind of retro-Swedish style socialism (that even the Swedes have repudiated!) that wants to flatten the economic curve by pushing it down toward the upper-middle class whilst cutting off the extremes on either side. With that in mind I find it even more remarkable that our Commissioners voted against a simple majority to incur debt. It gives one a tiny fragment of hope.
R u kidding me?? Four against? This is a Mt Lebanon Miracle.
ReplyDeletePoor, poor Dave.
Back in May I wrote to the Commissioners concerning local debt and their proposal to make it easier to assume it, pointing out that "...as far as Mt. Lebanon goes, projections concerning revenue and spending, while currently rosy, are really only valid for the short term." Mt. Lebanon, like any local government, is dependent upon the larger economy, and both Pennsylvania and the United States are deeply in debt. As I pointed out at that time, "U.S. and state debts may not seem like a major concern to you at this time, but should there be another major recession Mt. Lebanon may not be as "lucky" as it was during 2008/2009 - and you folks are not authorized to print money."
ReplyDelete"With these things in mind I would caution this Commission to focus more on paying down debt and maintaining infrastructure in the Municipality, and less on projects that benefit only a minority of residents. I would also counsel against creating a situation in which simple majorities can increase debt. Remember, you will not always be Commissioners, and you may not like what future commissions have in mind. A "super majority" requirement is less likely to create the kind of "unintended consequences" that local elected officials fail to see."
"Super votes" are not without precedent; they are written in the U.S. Constitution, as well as the Constitution of Pennsylvania.
As we all know, a "super vote" to incur debt does not provide a guarantee to Mt. Lebanon taxpayers that our Commission will exercise fiscal responsibility, but it is a step in the right direction. My congratulations to the Commission for doing the right thing.
It was a MAJOR SURPRISE to see this go down in flames. In fact, I cannot remember ANY vote where Dave has not been able to garner ANY support, before this one. The taxpayers have retained a serious layer of protection against pet projects now, especially since there is no longer a fat "Unassigned Funds Piggy Bank" that can be broken by any of the Commissioners the next time the "Super Majority" votes just aren't there. We owe a debt (word chosen intentionally) of gratitude to the four who held their ground. Surprising...and refreshing.
ReplyDeleteAs a follow up to my comments of 15 July, I believe the following video from the Reason Foundation featuring Peter Schiff entitled "Peter Schiff on Greece, Puerto Rico, and America's Looming Economic Crisis" is food for thought. There is no piece of real estate in the United States that is exempt from the basic laws of economics (or human nature). Mt. Lebanon cannot claim exemption from the consequences of too much national or state debt simply because Mt. Lebanon seems to have a solid financial footing. The debt to GDP in the United States is OVER 100%! Much of that debt was sold to foreign nations - especially China. Who on this Blog, or in this town, actually believes that Mt. Lebanon would be exempt from an economic crises should the USA default on its obligations? Does Mt. Lebanon have a municipal stash of gold in reserve?
ReplyDeleteI am one who does not believe that our Commissioners are evil people; but I do believe that they are "true believers" in their own political philosophies, and that those philosophies are grounded in a kind of retro-Swedish style socialism (that even the Swedes have repudiated!) that wants to flatten the economic curve by pushing it down toward the upper-middle class whilst cutting off the extremes on either side. With that in mind I find it even more remarkable that our Commissioners voted against a simple majority to incur debt. It gives one a tiny fragment of hope.