Lower Allen Web Log

When you wake up this morning and bring in your newspaper, you'll see a story by The Patriot-News' Chris Courogen about LAT's tax increase for the coming year:

The tax hike became necessary due to lagging revenues, most of which are attributable to the economic slowdown, said township finance manager Nancy Dietel. Revenues for 2008 are running about 2 percent below budgeted projections.

The $7.1 million spending plan is nearly identical to the 2008 budget. Spending is projected to increase by only about $100,000. Real estate taxes will go up a half mill to 2.5 mills. A mill equals $1 per $1,000 of assessed value

Instead of going on and on about how well LAT is run, and about how necessary the increase is to deliver quality services, it may be more helpful to bring you some of the numbers and facts which drove the decision. And while facts may be the last thing you want to hear if you're ticked off about the increase, it's facts which drove the decision, and it's the stark numbers which tell the tale.

So submitted for your edification this morning are two facts which will be far too familiar to anybody who has lived through the last six months:

• General Fund Revenue, Construction Permits (361.410):
• 2007 Actual: $244,869
• 2008 Actual (YTD Nov.): $125,739
• Change: -$119,130

• General Fund Revenue, Earned Income - Current Year (311.000)(
• 2007 Actual: $1,437,544
• 2008 Actual (YTD Nov.): $974,414
• Change: -$463,130

• General Fund Revenue, LST - Current Year (312.000)
• 2007 Actual (EMST): $817,130
• 2008 Actual (YTD Nov., LST): $359,902
• Change: -$457,228

The numbers in parentheses correspond to the budget line numbers. When you go to the Township building to review the budget, they'll help you reference the numbers.

These are only two of the revenue numbers which grossly underperformed in 2008. The first two numbers have been driven by the economic slowdown, and the third number has been driven by the state legislature's creation of the Local Services Tax out of the ashes of the Emergency Services Tax.

Submitted for your review, therefore, is more than one million dollars - $1,039,488 - in revenue shortfalls. That shortfall, contained in only three line items, equals almost 14% of projected 2008 revenues.

Lagging revenues? You betcha.