Letter to the editor, 3 authors 2-3-2013

Letter to the editor, coauthored with Mark Portier & Katherine Preston 

The so-called “Fiscal Cliff” is both manufactured and self-inflicted. In the 1940s-50s, the top federal marginal individual income tax rate was 80-90 percent. In the 1960s-70s, it hovered around 70 percent until it fell to 28 percent under President Reagan. President Clinton was able to restore some ground, and President Obama has fought for restoration to Clinton-era levels in the 36 to 39 percent range. Today, the Dow Jones Industrial Average is cresting near 14,000, an all-time high, while nearly 50 million Americans live in poverty and we have one of the highest child poverty rates among developed nations.

Meanwhile, here at home in New Paltz our property taxes have been rising while we’ve been cutting budgets and reducing services. In the late 1980’s, the state-provided portion of our school budget was 40 percent. Up until 2009, it ranged from 30-40 percent, but for the past three years, state contribution has dropped to 25 percent. As the state has disinvested in public education, the burden has been pushed to local taxpayers. So the school district cuts programs, negotiates for union concessions (obtaining more than any other district in the county), fires teachers and staff, and contemplates closing schools, all while the number of students — and our tax bills — increase. Anything that is not state mandated is in danger of being cut; not because we don't want these things for our children, don't believe in education, or don’t want to invest in our future, but simply because there is no money.

There’s been a similar pattern of state disinvestment in local government. In 2008, state aid for the village was $376,891, 9 percent of revenues; by 2011, it dropped to $182,023, 4 percent of revenues. Similarly, state aid for the town in 2008 was $899,108, 9 percent of revenues. By 2011, this fell to $442,062, 4 percent of revenues. During this same time period, the local tax levy increased in the both the village and town by 4 percent (seemingly, to make up the difference) while actual expenditures decreased by 14 percent in the village; but in contrast, town spending increased by 8 percent.

We are chopping up the kitchen table to keep the house warm. Since 2009, our school district has eliminated 69.8 teacher and staff positions. Last year, school spending decreased (by .7 percent) in tandem with a 24.5 staff reduction. Yet, property taxes increased 3.4 percent and over 50 new students moved into our district. The situation is just as dire within our municipalities: we’re paying more for less. For example, the 2013 town budget eliminated four positions ($320K) and $200K in materials from the highway department, clearly without any reduction in the miles of roads to be serviced. Some town board members have proposed closing Moriello Pool and eliminating funding for our police department. Majorities on the village and town boards are pushing for consolidation, which may result in more reductions in services without reducing taxes, or in an inequitable tax restructuring. And the school board is constructing a 2013-14 budget that is sure to include many cuts, while compiling a long-term plan that very possibly could include closing one or more of our schools.

How long can we sustain “fiscal cliff-ing” what we have built up? We need to radically change who and what we tax, and how we fund. We need a system of taxation that is fair and takes into account the ability to pay. We must let our elected leaders know we need to tax wealthy Americans who have not paid their fair share in decades. From Albany, we need reinvestment in schools and municipalities and real mandate relief. We need to push for legislation like the circuit breaker bill or the stock transfer tax, to pave the way for progressive taxation. Taxation needs to remove the burden of underfunded essential services from homeowners, retirees, and poor people and place it equitably upon the shoulders of all stakeholders. Those that can afford to pay taxes – federal, state, local – must do so. It is vital to the social contract. Social and economic justice must not take a backseat to the interests of the few.

Do you want leadership that will continue to dismantle what we have — or work to create fair governance and taxation for a thriving community? Citizen engagement is essential for our government to work well and to be responsive to the populace. Please attend town, village, and school board meetings to see what leaders are planning. Find out what is at stake and be a part of a solution-oriented process. In the words of Alice Walker, “We are the ones we have been waiting for.” Pay attention and chime in. We are in crisis. The time is now.

KT Tobin, Mark Portier, and Kathy Preston
New Paltz