Pattye Benson

Community Matters

Tredyffrin Township

Budget and Affordable Care Act on TE Special Meeting agenda tonight … Is this the precursor to outsourcing?

There is a special TE School Board meeting scheduled for tonight for 7 PM at Conestoga HS. The two items for priority discussion on the agenda are (1) The Board will consider options to close the projected budget imbalance of approximately $3.1 M for the 2014/15 school year and (2) Presentation of the impact of the Affordable Care Act (ACA) on the School District. Unfortunately, this important special school board meeting conflicts with both the Tredyffrin and Easttown Board of Supervisors organizational and regular meetings, which includes the swearing in of newly elected officials, previously scheduled for tonight.

In the District’s draft budget (included in the agenda), the base model for the 2014/15 school year indicates a $3.1M budget deficit – this model assumes no tax increase from the Act 1 Index or referendum exception (PSERS, Special Ed). In the projection model that includes the Act 1 index (2.1% tax increase) the District’s budget deficit is reduced to $1.2M. A third project model shows the budget deficit reduced to $141K if the District takes the referendum exception (1.1% tax increase) and the Act 1 index (2.1%). The $141K deficit project model would still requires the District to find other cost savings in addition to the 3.2% tax increase to the residents.

If the District imposes the 3.2% tax increase for 2014/15 school year, I think that would make the third year in a row they have imposed the maximum tax increase allowed by state law without a voter referendum. But here’s the disconnect for me – on one hand, the Board has voted to take the maximum tax increase but … for the last several years, the District has come up with multi-million dollar budget surpluses. As examples, the 2011/12 year saw the District in a surplus position of $3.9M and for the 2012/13 year, the surplus was nearly $5M. The budget surplus is not reflected in the District’s draft budget nor indicated in the next year’s budget. The multi-million budget surplus is added to the District’s fund balance and the taxes continue to rise.

Since the multi-million dollar budget surplus is taxpayer dollars, wouldn’t it be great if the taxpayers had a say regarding the surplus? Here’s an idea — Rather than adding additional millions of taxpayer dollars to the fund balance, what about using some of the budget surplus dollars for health insurance benefits to that all TESD employees as covered as required by the Affordable Care Act. Afterall, the District lists ACA and the TEEA teacher contract as the two items to impact the 2014/15 budget.

Following the District’s 2014/15 budget discussion tonight, is an ACA overview by attorney Rhonda Grubbs. Her presentation will discuss how the federal law will affect TESD and its employees. Grubbs is an associate at Wisler Pearlstine, the law firm of Ken Roos, the District’s solicitor. You may recall that Grubbs offered her legal opinion on the ACA at a TE school board meeting last spring in response to the District’s aide, para and substitute teacher outsourcing debate. Don’t get me wrong; I think a legal presentation on the ACA and how it will affect the District and its employees is important. However, in my opinion, residents and employees would have been better served by a third-party legal expert versus a representative from the District’s contracted law firm. And what about an insurance expert – I’m certain that there is any number of local insurance consultants/experts who would make a presentation to the District (and I’m guessing would do so, free of charge).

Under the ACA, employers will be required to provide employees who work more than 30 hours per week with health care benefits. The federal mandate will go into effect for school districts in the 2014/15 school year. Currently T/E aides, paras and substitute teachers do not receive health coverage. For the record, T/E is the only school district in the area that does not provide health insurance for their employees – Great Valley, Radnor and Lower Merion school districts all offer healthcare coverage to all their employees.

The District lists the following ACA compliance options:

1. Health Benefits:

  • Provide health coverage for employees working 30 hours/week or 130 hours/month

2. Contracted Services:

  • Outsource the jobs of aides, paras and substitute teachers

3. Reduce Hours:

  • Reduce hours of aides/paras to 27.5 hours/week and hire additional aides/paras to cover the reduced hours
  • Limit substitute teachers to 3.5 days/week
  • Reduce hours of aides/paras to 27.5 hours/week while increasing the hourly rate to make the reduction in hours neutral to the employee income
  • Reduce hours of aides/paras to 27.5 hours/week while increasing the hourly rate to all aides/paras

4. Incur IRS Penalty

After much debate, the Board decided not to outsource the aides, paras and substitute teachers for the 2013/14 school year. It is my understanding that 40% of the District’s aides/paras did not return for the current school year. Although neither the school board nor the administration has confirmed it – I was told that the positions of non-returning aides/paras who worked 30 hours or more were outsourced. If this is true, than the number of District employees that need to be covered by the ACA has dropped since this issue was debated last year.

As follow-up, how has the outsourcing of the aides/paras worked out for the District? For the record, several parents, aides and paras have told me that the result has been less than satisfactory — it would be interesting to know if the administration and Board are pleased with the job performance of these contracted employees.

I cannot help but think that the administration and the school board may have already made up their minds about the ACA situation. Were it not for the pushback they received last year, I believe that the administration would have already outsourced the jobs of aides, paras and substitute teachers working 30 or more hours per week. Clearly, the handwriting was on the wall in 2013 for the District’s aides, paras and substitute teachers and the 2013/14 school year may prove to be only a one-year reprieve for these employees.

Some have described tonight’s planned Affordable Care Act presentation by the District’s law firm representative as nothing more than a PR move but … I remain hopeful that some of our school board members will show their support of the District’s aides, paras and substitute teachers and fight for them to keep their jobs (and their hours).

A New Year … Take time to look at the stars!

“Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover. ” ~ Mark Twain

Armed with hope, we tackle a new year . . .

Oscar Wilde, the great 19th century literary figure, wrote, “We are all in the gutter, but some of us are looking at the stars.” And so, just as we began 2013, so we begin 2014 – with a long list of hopes and dreams for the New Year. Yes, that time of the year is upon us again.

‘Tis the season to reflect on the year gone by and make resolutions and wishes for a better 2014. We resolve to be especially good to ourselves. We’ll eat healthier, we’ll make our lifestyles more sustainable, we’ll turn over that proverbial new leaf that pops up every year around this time . . .

We will wish good thoughts for the New Year. We will hope that our elected officials in Washington, Harrisburg and yes, in Tredyffrin Township always put the people’s best interests ahead of their own.

The year 2014 certainly won’t be a carefree one, but there’s no reason it can’t be a happy one. Happy new years don’t happen automatically. They require a lot of work, a lot of planning, and more than a little bit of luck. There’s not much anyone can do about number three, but those first two factors are something members of this community understand and are good at.

Happy new years are never guaranteed. But as they arrive, they offer the chance for all of us to find our footing and focus and resolve — an opportunity to learn from past mistakes and move forward.

Here’s to a happy 2014 and remembering to take time for “looking at the stars”.

Believe in the spirit of the holiday season!

Tomorrow we celebrate Christmas. Gifts will be opened, stockings unstuffed, and laughter will fill the day for families all across the area. We celebrate family, friends and love with gatherings filled with joy. It’s a time to celebrate, to reflect on our blessings, and to look to the future with anticipation and confidence.

Looking back on a year filled with ups and downs, highs and lows … this holiday season gives us a reason to hope. Like everyone, I hope for a better tomorrow, for peace on earth, and that those who are lost can find their way. This is the time of year where such hopes and dreams are more than just sentiments; they are goals of all mankind.

Each of us may have different traditions with different memories and different stories of the celebration of our holidays, but our wishes are all the same. Whether one is Christian, Jewish, Muslim, Buddhist, Hindu or any other faith is not the important lesson of the season. Believing in the spirit of the holiday season – whatever or whomever you choose or choose not to believe in – is what makes this a special time of the year.

No matter whom you might worship, or not worship, or by what creed, faith, or practice you choose to acknowledge isn’t what is important. It is the empathy to understand there are many who are not as lucky to have a warm bed, a roof over their head, or food on their table. To understand and to give to those of us less fortunate is what makes us human and this time of the year special, not whether you say the words “Merry Christmas” or “Happy Holidays”.

The holiday season should remind us that it is not about words but rather about caring about others. It is the charity in our hearts to consider others, to offer forgiveness and acceptance, to volunteer our time, to donate and to try to make this world a better place, each in our own special way.

It really isn’t whether you say Merry Christmas, Happy Holidays or Season’s Greetings but rather it is about believing in the spirit of the season.

My best wishes this holiday season.

‘Tis the Season … Yes, Virginia there is a Santa Claus!

We’ve all seen the promotional offers about upgrading your TV, especially during the holiday season – it’s easy and it doesn’t have to cost your anything. You’ve read the words — enjoy a much sharper picture, a lot more channels and a low sale price.

Your TV may be capable of receiving a lot more channels and displaying them a lot more clearly than you probably think it can but be prepared for the customer service calls, endless add-ons, equipment upgrades, etc. etc. As friend Neal Colligan discovered during the last few weeks, be on guard if you are pondering an upgrade from your dumb TV to a smarter species. Just in time for Christmas, Neal offers his humorous journey of discovery that not all smart TVs are created equal and that nothing is ever as easy as it appears. And … yes, Neal there is a Santa Claus!

Hoping This Isn’t Your Christmas

~ Neal Colligan

It all started simply enough…time to make some changes to the living room. It’s where the dogs and I spend most of our free time watching sports or movies. Part of the initiative involved replacing the big screen. While the 51” SONY, rear-projection, early HD compatible was a fine TV 8 years ago; a lot of technology has come along since then. Not being one to jump on every new model of stuff (my golf irons may be this old too), there still comes a time when upgrades are necessary. Plus, it’s just before Thanksgiving and all those TV’s are on sale! After a quick educational session at Best Buy, I decide on a Smart TV….yeah, no more going to the Red Box for DVD’s…stream away on Netflix…easy/peasy. Armed with knowledge, I purchase the TV days later (Costco/Delaware to save $$$) for a great price.

All we need now is a new HD box with HDMI connection. I’m far from a technology wizard but I can spell HDMI. Enter the Comcast chapter of the story. Springing up early on the Saturday after Thanksgiving, I’m dedicated to being one of the first customers in the Downingtown Comcast location…it’s behind the Loews Home Center BTW… well hidden from the occasional customer. After tracking down their office, I dutifully return my old box/power cords and sundries and receive my new (1/3 the size and 5 lbs lighter) HD converter box with the HDMI hock-up…they even gave me an HDMI cable…ease/peasy. Just hook it up and call the number on the slip and we’ll turn it on. “Will I be watching college football at noon?”…”Of course” the nice lady assures me. This is important as its conference championship day and the Iron Bowl (Alabama/Auburn) is on at 3:30. Hook-up is easy as I’m now become adept at slipping behind the new big screen to the cable connection in the rear.

Time to call Comcast……grinding halt. They cannot find the “box” on their system. Through a series of 6 phone calls and two on-line chats, I’m given a number of reasons that it may not be working….but no solution. Kick-offs have begun and I’m splitting my time now between two rooms trying to keep up with the action. By 2:30, Comcast has given up and “maybe it’s a bad box so why not bring it back to our store for another”. Dashing the 22 minutes back to Downingtown (I know where they are hiding now) at halftime of the early games…I’m now 10 deep in line… aaargh. Box back and new box in hand, I scramble home. Quick hook-up, now that I’m an expert at sliding behind the TV and quicker call to Comcast….can you put in the phone number associated with the account?…. press one for cable TV… press four to speak to a technician…call volume is unusually high today, pleases stand by… hello, this is fill in the blank can you give me the phone number associated with this account?… for security can you give me the last four digits of your social security number?… let me transfer you to a technician…. click… This goes on for the rest of that day… did I mention it was a great college football Saturday. After talking to Debbie, VillaRosa and Justin… Comcast could still not turn on the box. “We’ll have to send someone out… and we may charge you for the visit.” Fine … whatever… can it happen today… UCLA/Arizona State is the night game. “How about Tuesday???… can you be home from 1:00 to 3:00???”

I was happy to meet Dan that Tuesday at 1:30… he’s a cable god. Wired me up, gave me (now) my 3rd new box and got me a signal. What happened to the other two boxes I wondered? “Probably a bad batch not set to our signal; they go back to the factory to get re-programmed.” Tough business model to make a profit, Comcast must be about $800 into my TV now with my 13 phone calls, 3 web-chats and Dan’s time but they’re almost a monopoly so I guess they can make some mistakes. No worries…I’m a Smart TV operator now!!! Time to open Netflix and begin my streaming life…or so I thought.

Enter Comcast Chapter II. The stream is no good, the movie is constantly buffering… what to do?!? Call the trusty Comcast… what number is associated…. well, you know. It seems Mr. Colligan that your modems are totally outdated. The internet modem reached its End-of-Life last July and it’s too slow for streaming movies. Really, why wouldn’t my guy Dan have let me know I thought? And, just so you’re not disappointed, Comcast does not support Smart TV technology… only Apple TV…. REALLY!!! Your Comcast phones are going to be ringing off the hook after Christmas!!!!

Back to tech buying. Bought a new combo modem (voice, internet and router!!) from the Comcast website…. they are very specific about what they support. Set that up with a quick two-phone call chase… easy/peasy… I’m getting better now. BUT, where does the phone plug into this one???? Let me check … that model does not support voice connections. Back in the box, return, repurchase….. It’s now mid-December and I’m hoping to be up and running by College Bowl Season. And, now that I have some mail-back and wait for the new modem time; I pack up the Smart TV (not supported by Comcast), drag it back to Costco and buy the dumb (OK they’re not really dumb but you get it…) TV (Best Buy was cheaper) saving me $400 and order Apple TV for $99 bucks. BTW, this is good company with great support!

The rest of the story is pretty much the same. BUT, I am now streaming fine, have my own modem (no rental from Comcast although getting the one I returned off of my bill could be another two month process), Apple TV and even went back the Best Buy on the Price Match guarantee and got another $50 off my new dumb TV. More importantly, for me, is that I’m done before Christmas.

Tredyffrin BOS discusses Town Center zoning changes and TESD finances discussed

As is often the case, last night’s Board of Supervisors meeting conflicted with the Finance Committee meeting of the School District. I attended the Supervisors meeting as I was particularly interested in hearing about any Chesterbrook Village Center updates.

Prior to the regular BOS meeting, the supervisors held a public hearing on the proposed amendment changes to the Town Center zoning ordinance which would affect the redevelopment of Chesterbrook. The 122,216 square foot shopping center lost its anchor store, Genuadi’s supermarket in August 2010. With the departure of the 40,000 square foot grocery store, the Center saw a significant drop in foot traffic and began a downward spiral as the empty storefronts continued. The shopping center was sold at a receiver’s sale November 1 for $8.9 million to 500 Chesterbrook Boulevard, LP. As someone who lives in the western part of the township, I regularly use travel through Chesterbrook and I look forward to seeing its redevelopment.

Lou Colagreco, attorney for the shopping center owner, offered eight suggested changes to the township’s Town Center zoning ordinance. After much discussion from the supervisors and with opinion offered from audience members, there were a couple of sticking points that could not be satisfied.

Colagreco sought to decrease the parking requirement from 2.5 parking spaces to 2.25 parking spaces per townhouse, citing various national surveys and local development trends. Although Colagreco offered neighboring municipalities have decreased their parking requirements, he found little support for this change from the supervisors and definitely not from the residents, many of which live in Chesterbrook. He also hoped to change the stormwater requirements and exclude decks as part of impervious coverage requirement. Because of the severity of stormwater issues in the township, lessening this requirement also did not meet with a favorable response, particularly since these changes would affect the entire township, not just Chesterbrook. After a couple of hours of discussion, the supervisors decided to send the suggested Town Center zoning ordinance changes back to the Planning Commission for further review and revisions rather than approving.

I am anxious for the redevelopment of Chesterbrook and look forward to seeing the preliminary draft of the plan when it is available. The Town Center ordinance combines commercial and residential usage. Last night marked the last official supervisor meeting for supervisors Michelle Kichline and Phil Donohue; we thank them their commitment to the community and their public service during the last four years. On Monday, January 6, Murph Wysocki and Mark Freed will be sworn in and join the Board of Supervisors.

Ray Clarke attended the TESD Finance Committee meeting and I thank him for providing his notes from the meeting. I note that the school board is resurrecting the Public Information Committee which is great news. If you recall, Debbie Bookstaber chaired this committee but after she left the school board, the committee was disbanded. At that time, Betsy Fadem stated the committee was not necessary, as each existing committee would provide their own public communications. But as we have seen during the last year, communication could be improved and I am grateful that Scott Dorsey is taking over this role to chair the committee. Ray also mentions that the Board intends to have public discussion on the Affordable Care Act and its requirements. The aides, paras and substitute teachers received a reprieve on this TESD jobs for one-year that runs until June 2014. To meet the ACA requirements will require the school district to offer affordable health insurance to all employees so this discussion should start soon rather than later on this topic.

Here are Ray’s notes:

A note before getting to the meat of last night’s TESD Finance Committee – some encouraging signs on the communications front. The Public Information Committee has been resurrected, now under Scott Dorsey’s leadership. The FC meeting was structured to facilitate community input (although the competing Township event limited participants). And the Committee took steps to add back historical context to the monthly financial statements, so our analysis should become easier. Time will tell on all of the above, but the intent seems real.

1. 2013/14 Forecast. The budgeted $1.7 million deficit is now projected to turn into a break-even (including the one-time TEEA bonus). This is driven by the $0.65 million benefit from the Vanguard settlement, a $1.4 million favorable variance in salaries (factoring in all retirements, resignations, leaves), a $0.2 million reduction in salary-driven benefits, a $0.2 million savings in transportation, offset by (non-salary) special education expenses that are $0.85 million over budget. So, yet again, the budget under-estimated the salary “breakage”. The special ed development is perhaps more of a surprise and although it wasn’t clear, seems to be made up of outside tuition and legal costs driven by an unexpected influx from early intervention programs. That seems like an especially large variance given a total special education budget of $16 million.

2. Preliminary 2014/14 budget. The FC voted to approve for discussion at the January 6th Board meeting a draft that calls for a 3.2% property tax increase: the 2.1% Index and 1.1% PSERS exception. This looks to me like a budget with enough leeway to absorb costs of a TEEA agreement and AHA solution, both of which are left as “status quo” in the first pass. The ~$3 million expense increase is a result of a $1 million net PSERS increase, and a $2 million increase in “other” expenditures. The breakdown of the “other” number was not quantified, although Special Ed and Maintenance cost increases were cited. Interestingly healthcare costs are expected to be flat. The salary line is level also, but results from a number of puts and takes: absence of the $1 million plus bonus and savings from the new TENIG agreement, offset (completely?) by nine additional teachers, six due to enrollment, two due to special ed, one for mental health. No sign of the (in) famous breakage in this calculation, though!

My take-away:

1. The Board needs to be persistent in seeking a full accounting of the projections, as the high level numbers net out and obscure many different trends (more detail was requested). Also, it’s too easy, as was done last night, to place the blame on Harrisburg/PSERS, when in fact that’s only one third of the expense increase. Everyone last night quickly accepted that all cost savings opportunities have been implemented after the efforts of recent years. It may be helpful to the community to recap what possible next steps would be (eg are we really down to major and unlikely options like class size, arts programs, transportation, facilities capital spending**, etc., and what would be the magnitude for those?). [**Capital spending is paid for by tax payers, too].

2. The size of the Special Education program in total, the “miss” this year and continuing above-index increases are clearly a budget concern. The district has taken steps to control costs, but those are being overwhelmed. I think it would be helpful to the community to have an exposition of the program, perhaps at an Education Committee meeting? A description of the services offered, the utilization and price trends, steps we have taken and plan to take, comparison with other districts and so on.

3. There is no sign yet of any increase in the real estate assessed base value, which is budgeted flat, but signs of development suggest that any change will be to the upside. On the other hand, residential development will increase enrollment, and as Dr Motel is quick to remind us, that’s a net negative for the school district. So the pressure on real estate taxes to increase above the rate of inflation will continue. (Although PSERS will be more or less leveled out by 2018/19, even with the just-released slight increase in planned contribution rates). I continue to believe that it makes sense to share the tax burden between property and income via an EIT, although of course implementation would be a huge problem.

4. The community needs to pay attention, starting with the January 6th Board meeting. Although the budget evolves as more data comes in, and exceptions advertised may not be requested or indeed taken, early numbers have a way of being sticky.

A final note: President Buraks informed us that the district is putting together a full analysis of the options associated with the requirements of the Affordable Healthcare Act. This would be presented for community discussion rather than as a Board recommendation. The idea seems to be to do this soon, although no specific timing was given.

State Rep Warren Kampf takes on TTDEMS Chair Dariel Jamieson for lying about him … again!

Below is an excerpt from an op-ed written by State Rep Warren Kampf (R-157). In the article, Kampf is calling for an end to uncivil discourse. He uses a couple of examples in his editorial of uncivil speech, including Dariel Jamieson’s recent letters to the editors. It is not Jamieson’s right to voice her opinion concerning Kampf’s vote on the transportation bill that is the issue but rather her lying about a political pledge she states that Kampf took. As I said in my last post, Jamieson compounded the difficult situation by writing a second letter to the editor and not taking responsibility for her incorrect accusations contained in her first letter. Civil discourse means to engage in conversation intended to enhance understanding – personal attacks and lies are wrong and diminish the value of the argument.

In his latest op-ed, Kampf does not say Jamieson’s actions were politically motivated. However, when you write an editorial attacking a Republican elected official and sign the letter as chair of the local Democratic Committee (as Jamieson did), it is not a stretch to come to that conclusion. For those keeping score – Dariel Jamieson has now written two editorials attacking Warren Kampf in the last couple of weeks and Kampf’s op-ed marks his second response back to her. Here’s hoping that Jamieson does not feel compelled to write a third letter to the editor on the same topic!

Beyond the uncivil discourse created by Jamieson’s letters, I remain troubled that her actions as the political party chair are putting Murph Wysocki and Mark Freed, the newly elected Democratic Tredyffrin Township supervisors, in an awkward position less than a month before they take office. Wysocki and Freed will join five Republican supervisors on the Board and this ‘war of words’ from Jamieson going on in the background cannot be helpful to them. I will not believe that Jamieson sought counsel with either Wysocki or Freed before engaging in this discourse against Kampf – if she had, it is extremely doubtful that they would have approved either of these letters.

When you accept the role of president or chair of an organization, and act publically in that capacity, you need to ensure that your voice is representative of those that you are elected to serve – are Jamieson’s letters to the editor representative of TTDEMS members opinions? I hope not.

In closing, I echo Kampf’s words,” … every citizen and every elected official – would be better served saying what we must in a way that achieves civil discourse …” Below is the excerpt from Kampf’s Op-Ed, to read the entire article, click here.

It’s Time to End Uncivil Discourse

As State Representative, I am accustomed to hearing from constituents as they present their views and positions on issues being addressed in Harrisburg and here at home. Some agree with me. Some do not. But, mostly, all make their points in a manner that is respectful and fair. I work hard to do the same in answering their concerns. It’s called civil discourse, and it is one of the foundations of our representative democracy.

Unfortunately over the past few months – as we have seen arguments over government shutdowns in Washington, D.C., differences surrounding the recently enacted Transportation Funding package in Harrisburg, and now the passionate feelings over eminent domain issues in Phoenixville – it has become clear that too many have abandoned civil discourse in favor of uncivil speech and actions.

This speech and these actions do us no good. It forces people, who are otherwise normally reasonable, to abandon the idea of achieving pragmatic progress. It forces gridlock. It stops us from addressing truly important issues.

During the debate over the Transportation Funding package, I was accused in a Letter to the Editor of choosing my position based on a political pledge to a Washington, DC special interest group. The problem? I had never taken any such pledge (something that was easily verifiable with a simple internet search) and I had made it known publicly that my position came from surveying the people I represent. My attacker, however, had no problem simply submitting a lie to the newspaper. That’s uncivil discourse.

I give my attacker respect for her position on the issue and her passion over it. I believe, however, her point could have been made in a way that was more respectful to both the public and me. Had she made her point this way, I believe it may also have been more effective for those she wished to persuade. . . .

Let me be clear: I am in no way suggesting that citizens abandon making their voice heard, be it in favor or opposition to an issue. As the saying goes, “I may disagree with what you say, but I will defend to the death your right to say it.”

I am just suggesting that all of us – every citizen and every elected official – would be better served saying what we must in a way that achieves civil discourse again. In this way, we can find our way to truly addressing issues rather than just fighting about them. That is a simple goal we should all strive to achieve if we truly care about making our community stronger.”

Rather than partisan mudslinging, can we come together and move the Paoli Transit Center project and the economic redevelopment of Paoli forward?

The passage of the $2.4 billion transportation bill which will provide new funding for the state’s roads, bridges, tunnels and transit systems over the next five years, and the subsequent $14.5 million award earmarked for the Paoli Transit Center, brought excitement and renewed hope for Paoli. In discussion for 30 years, the train station project has languished with little movement and the new transportation funding, including multi-million dollar award for Paoli Transit Center, could be the needed catalyst. The economic redevelopment of Lancaster Avenue through Paoli hinges on building the Paoli Transit Center – its time is now. Paoli deserves a new beginning.

The release of Chester County Planning Commission’s 2013 Transportation Priority Projects report occurred prior to the House vote on the transportation bill although I did not see it until afterwards. The report lists Paoli Transit Center as a transportation priority and includes a current photo of Paoli train station serves as the report’s cover. There is no question that the recent release of the Chester County report was a significant factor in the $14.5 million funding award for Paoli.

In addition to the county’s Planning Commission prioritizing Paoli Transit Center, the Delaware Valley Regional Planning Commission (DVRPC) continues to strongly support the project. DVRPC adopts the Transportation Improvement Program (TIP), the regionally agreed upon list of priority transportation projects (as required by federal law) and its recommendations. TIP’s 2013-2016 project list includes the Paoli Transit Center as a priority.

As residents in this community, we are aware of the importance of the municipal government and school district receiving Moody’s Aaa bond rating. Moody’s ratings scale range from Aaa (highly unlikely to default) to D (in default). To receive the highest rating, requires very strong financial operations, ample reserves and strong management policies. In fact, candidates seeking office often promote maintaining our Aaa bond rating on political campaign literature. So … it was interesting to read that we can add Moody’s Investors Service (www.moodys.com) to the list of those pleased with Pennsylvania’s transportation funding bill, calling it “a credit positive for the Commonwealth of Pennsylvania”. Moody’s also gave the bill a credit positive because it phases out the annual funding burden that the prior transportation bill (Act 44) created for the Pennsylvania Turnpike.

There is strong support for the Paoli Transit Center including Tredyffrin Township (Paoli on the Move), Chester County Planning Commission, Delaware Valley Regional Planning Commission, Transportation Improvement Program, SEPTA, Paoli Business and Professional Association, local business community, elected officials and many residents.

However, initial excitement about the transportation bill and multi-million award for the Paoli Transit Center, has been marred by some finger-pointing and local political wrangling. In advance of the final House vote on the transportation bill, a letter to the editor by Darien Jamieson, chair of the Tredyffrin Democrats, appeared in the Main Line Suburban. In her letter, Jamieson criticized State Representative Warren Kampf (R-157) for his lack of support for the proposed transportation bill. Unfortunately, Jamieson took her criticism of Kampf too far, making an inaccurate and unsubstantiated claim. Jamieson’s letter ‘Warren Kampf – Too Extreme for Tredyffrin’ stated that Kampf took the Grover Norquist “No Tax” pledge. Her statement was not substantiated and the claim was incorrect.

In his response to Jamieson (which also appeared in the Suburban), Kampf refuted her claims, stating, “I have never taken a “no tax increase” pledge with any group, including any in Washington, D.C., as Ms. Jamieson claims. I would challenge her to offer proof for this claim or admit it is 100% a fabrication”. A couple of days later, the transportation bill passed (without Rep. Kampf’s vote) and the subsequent announcement made about the $14.5 million award for the Paoli Transit Center.

This week Main Line Suburban contains another letter to the editor written by Jamieson. Writing as the chair of the Tredyffrin Township Demoratic Committee, I assumed that the purpose of Jamieson’s latest letter was to offer a public apology to Rep. Kampf for her previous unsupported accusations. But no, there was no apology or retraction from Jamieson to Kampf in her letter, ‘Warren Kampf: Watch what he does – not what he says’ .

As a supporter of the Paoli Transit Center and the redevelopment of Paoli, I too questioned Kampf’s lack of support for the transportation bill and did not agree with his position. However, it was wrong of Jamieson to ‘make facts up’ to strengthen her case against Kampf. The situation made worse by the fact that Jamieson had the opportunity to apologize to Kampf and retract her accusations and chose not to.

I’m not certain from where Jamieson is taking her cues but I would think that following the local Democrats impressive election wins last month, she would take a low profile. With two newly elected Democrats (Murph Wysocki and Mark Freed) joining Tredyffrin’s historically Republican Board of Supervisors, it would not appear helpful to have their party chair immersed in a ‘war of words’ with our local state representative. To be successful in their new supervisor roles, requires Wysocki and Freed to leave their political party ‘hats’ at the door and prepare to work hard for all the residents – Republicans, Independents and Democrats. That same sentiment goes for the Republican supervisors.

The transportation bill passed and the community received good news for the Paoli Transit Center – rather than continuing the partisan bickering that only serves to divide, can we come together and move the train station project and the economic redevelopment of Paoli forward.

Fantastic News!! PA State Senator Andy Dinniman Announces $14.5 Million Award to Paoli Transportation Project!

I just received the following press release from State Senator Andy Dinniman’s office — what wonderful, unbelievable news!!

Dinniman Announces $14.5 Million for Paoli Transportation Center Project

WEST CHESTER (November 25) – State Senator Andrew Dinniman today announced that $14.5 million in funding has been awarded toward the Paoli Transportation Project.

“This announcement represents my determination to take one the most significant steps forward in the 30-year history of the Paoli Regional Transportation Center,” said Dinniman. “Paoli and the Great Valley Corporate Center have long served as an economic engine for Chester County. The proposed transportation center and train station at Paoli will ensure that our regional infrastructure continues to provide incentives for entrepreneurs from local small-business owners to international corporations, to call Chester County home.”

Funding for the Paoli Intermodal Transportation Center is a vital component of the proposal to relocate and expand the current station to a new site near the existing facility. Specifically, state funding will be directed toward roadway realignment and widening to accommodate the new and expanded regional transportation center. The proposed modern transportation hub in Paoli will improve access for buses, shuttles, and taxis; significantly increase commuter parking to meet both current demand and provide for future ridership; and improve vehicular traffic and reduce congestion for surrounding roadways.

“In light of recent transportation funding legislation in Harrisburg, I worked to ensure Chester County benefited directly from this funding package,” Dinniman continued. “Despite the efforts by some local officials in the House of Representatives to block this vital funding, I am pleased to announce that significant support will be directed for improvement projects such as the Paoli Regional Transportation Center.”

In addition to securing funding for the Paoli Transportation Center, Dinniman announced that more than $123 million in transportation funding will be directed to improvement projects throughout his current legislative district. These projects include $36 million for the repair and replacement of bridges, $17 million for regional roadway and pedestrian-use safety improvements, almost $69 million for roadway repaving, expansion improvement, and other traffic congestion mitigation project throughout Chester County.

“The key to the continuation and growth of our regional economy is directly linked to the strength of our infrastructure,” said Dinniman, noting the 76,000 new jobs estimated to come to Chester County between now and 2040. “With this in mind, I will continue to fight for support of Chester County and will work to ensure that important projects, such as the Paoli Transportation Center, are fully funded and completed.”

Reflections from TE School Board Director Richard Brake

Locally elected school boards are the only entity that has the mission of keeping public schools public. They have a vested interest in retaining public control of schools and ensuring quality education since their actions directly impact local community life.

Richard Brake, a Republican, was defeated on Election Day in his attempt at a second term on the TE School Board; losing to Democrat Scott Dorsey. Monday, November 25 marks the final school board meeting for Brake, Betsy Fadem and Anne Crowley. On Monday, December 2, the torch is officially handed to those newly elected to serve the school district, including Dorsey, Doug Carlson and Virginia Lastner.

The defeat in a local election is not what defines you. I hope that Dr. Brake and other school board (and township supervisor) candidates defeated in the recent election will take the words of Andre Malraux to heart and remain involved in the community – it’s important.

“Often the difference between a successful person and a failure is not one has better abilities or ideas, but the courage that one has to bet on one’s ideas, to take a calculated risk – and to act.”

The following is an editorial written by Rich Brake which appears in the print version of Main Line Suburban this week.

Why I Lost, and the Future of Tredyffrin Politics
By Richard A. Brake, Berwyn, PA

You win some, you lose some. That’s what I told my family and friends after I lost my re-election bid for T/E School Board. As a lifelong Cubs fan and former competitive long-distance runner, I have experienced defeat much more than victory, and so I know that you always learn more from your losses than your wins. I also believe in Providence, and that it is likely that as this door closes, others will certainly open and new opportunities for service will present themselves. I very much enjoyed my time on the Board, and hope that I performed some small public service for the benefit of our community. The bottom line is that the sun rose the day after I lost, and since politics at all levels remains a peripheral part of our lives (which is a good thing I think, though not without its downsides), it would be wise to keep this small little episode in its proper perspective.

With that said, I am reminded of a saying one of my graduate school professors was fond of repeating – “If you’re not interested in politics that’s too bad, because politics is always interested in you.” So I do think that there are important lessons to learn from this campaign season. It is also the case that it is hard to have your entire life’s work, and the principles that this work represents, pilloried, caricatured, demonized, and ridiculed in front of the entire township. It is natural, then, to try to make sense of a difficult experience like this – was it something I said; was it something I did? Are my principles that reprehensible? Did I allow them to blind me to the real issues we faced on the school board?

When I look into the mirror, I don’t see a monster or a label, but a flawed but nevertheless dedicated father, husband, educator, veteran, and public servant – but I know that we all come-off very differently to others than we do to ourselves, and maybe some of the problem was not what I said but how I said it. Regardless, it was clear on election day that there were a lot of people that didn’t like me, or what I supposedly stood for, and that is a bitter pill to swallow, especially when you have to explain this to your kids (by the way, I don’t want to teach creationism in the schools, and have no idea where that outright lie came from!). Obviously I could have done a much better job communicating to the voters who I am and what I really stand for, but it is also the case that the other side bears a great deal of responsibility in creating a false and misleading picture of me. Politics ain’t beanbag, to be sure, but I brought a water pistol to a bazooka fight, and that kind of negative, name-calling brand of politics unfortunately won on November 5th.

As a result, I’d like to spend the rest of this piece examining the case my opponents built against me; whether that kind of campaign, though successful in the short-term, really serves the best interests of our community; and whether someone like me, with the principles I believe in, should be or will ever be allowed, to serve the public trust here in Tredyffrin again. Along the way I hope to suggest a more optimistic, collegial, and effective brand of local politics than the slash and burn variety that we have witnessed these last two election cycles.

So why did I lose? Four years ago I won by 400 votes, 55%-45%. This year I lost by over 200 votes, even though I garnered more votes this year than four years ago. So what happened? From a sheer numbers perspective, the Democrats turned out their base more than the Republicans did, and in a local race like this, turnout is everything. How did they do it? Simple. They labeled me Tea Party to their supporters – and successfully tarred me with the residue of the recent partial government shutdown, the responsibility of which – rightly or wrongly – has been placed by many at the feet of so-called tea party republicans in DC. In other words, instead of focusing their campaign on local issues, the democrats nationalized a local election (sometimes Tip O’Neill is wrong; politics is not always local), and the white-hot antipathy local democrats have for the tea party convinced many more of them than usual to come out and cast their ballots not only against me, but other republicans as well.

Now there is a lot to say about these tactics. First, I think that the partial government shutdown was a collective failure to compromise on the part of the entire elective branches in Washington, and not just some vocal faction that controls only one house out of three. And with the recent problems with the disastrous roll-out of Obamacare, we will just have to see how this DC morality tale plays out in the weeks and months ahead. I also think that by and large, local campaigns should be about local issues and not distant fights in far-away capitols (I will have more to say about those local school issues in a moment). I have no problem with a vigorous and aggressive exchange of views that draw sharp distinctions between candidates. That is the heart of elections – a debate about competing ideas – and as long as those fights are fought on the merits, I am happy to accept the verdict of my community if they feel my ideas won’t work to solve the pressing issues of the day. But that is not what happened here!

What did happen was a classic case of guilt by association. What heinous thing was I guilty of being? Why, a conservative of course, and working in the conservative movement and with local tea party groups on their constitutional education classes. So let’s deal with the charge of being a conservative.

I am a constitutional scholar who has a great reverence for the founding principles of our country, and have spent most of my life teaching the story of our country and its animating leaders and ideas to high schoolers, college students, and ordinary citizens who have expressed an interest in learning more. That’s what I do at the Intercollegiate Studies Institute today, and I am proud of our work in teaching American first principles – constitutional government, free enterprise, individual liberty, personal responsibility, the rule of law, and traditional moral values. Since when have those principles become dangerous and subversive?

So again, I guess I am guilty of being a conservative, and I happen to be a conservative of the Edmund Burke, G.K. Chesterton, Russell Kirk, Robert Nisbet, and Ronald Reagan variety (just to name a few, along with founding fathers like John Adams, James Madison, John Dickinson, and Richard Henry Lee). If you don’t know who these guys are, look them up and tell me if you disagree with them. As a “traditionalist” conservative (www.imaginativeconservative.org), I have great sympathies for localism and grave misgivings about corporate “crony” capitalism. I believe that liberty must always be tempered by the requirements of order and the mercies of justice, which means that we have both rights and duties in a free and virtuous society. I believe in community and what some now refer to as “crunchy” conservatism, whose tenets are best expressed on this great blog www.frontprochrepublic.com. I could go on, but I was under the impression that I was running for my local school board on November 5th, which is why I spent all of my campaign talking about my record on the issues, and not about far-away political battles and my particular brand of conservatism.

But my opponents had other thoughts in mind. For them, conservatism is not a legitimate rival public philosophy that has a distinguished history and respectable intellectual pedigree. My guess is that the local democrats are completely ignorant of the great thinkers of the modern conservative movement (I can assure you that I know and respect, though disagree with, their great thinkers, like Woodrow Wilson, Herbert Croly, John Dewey, and FDR), and instead rely on caricatures of conservatism from the mass media and their own think tanks and interest groups. No, conservatism has become a dirty word, boiled down to the epitaph “Tea Bagger” – and like the term “communism” in the 1950’s, this neo-McCarthyite name-calling seems to have worked among a large swath of the electorate, not only here in Tredyffrin but across the country. I honestly expected more from such a highly-schooled community, but clearly there is an emotional reaction this term engenders and it does the electoral trick (and as a conservative, I too had problems with some of the tactics employed by our politicians in Washington).

I think the main reason why the democrat’s tea party strategy worked is that they equated all conservatives and republicans with the tea party, and then they equated the tea party with one simple word – MEAN. And there are a lot of Tredyffrin residents who view conservatives exactly in this way. We are MEAN because at all levels of government we are skeptical of large government programs, and the growing tax burden they require, actually working to solve the very real problems of poverty, hunger, joblessness, and access to quality health care, housing, and education. But what most people hear, and what conservatives do a horrible job of addressing, is that we are simply against THE PEOPLE who are poor, hungry, jobless, homeless, and lack other basic necessities. And if that was really true, then conservatives would be MEAN, and should not be trusted in public office. Since enough people believed that caricature on November 5th, conservatives like me were shown the door.

The only problem with all of this, besides the glaring rhetorical problem conservatives have, is that in my case, I really am not mean. As a devout and practicing Catholic, I do try to practice my faith through good works for the poor, and a helping hand around the neighborhood. I think those that know me, even those on the other side of the political aisle, know this to be true. I really do believe in the parable of the rich man, the camel, and the eye of a needle, and hence know that we can’t serve both God and Mammon, which is why we must be truly charitable with our time, talent and treasure.

I guess what it comes down to is that I don’t believe that the only or primary way to be charitable is through large bureaucratic government programs that spend most of their resources not on their poor clientele but on salaries and benefits of an ever expanding government work force (I would be for a complete de-regulation and consolidation of welfare assistance, cutting out the government middle-men, and increasing cash payments to the truly poor for a fixed period of time). And with our ever-growing unpaid debts we are incurring – whether it be in Harrisburg with our pensions or in DC with all of our entitlement programs (and now a new one in Obamacare) – the worry I have is that these unsustainable programs will continue to crowd-out private economic activity that produce the jobs that we all need to pay our mortgages, feed our families, and send our kids to school. The best welfare program still remains a good job!

And so to turn the argument on its head, I actually thinks it’s MEANER to continue to rack-up mountains of debt and debase our currency in Washington; not to address our unsustainable pension obligations in Harrisburg; and not to put a brake on higher and higher property taxes here in Tredyffrin – because this failure to act will end up hurting our kids who will be saddled with debt, hyperinflation, bleak job prospects, and lower standards of living; will damage our educational program as more funds are diverted from the classroom to retirees; and will force more seniors on fixed incomes out of their homes. In the end, then, it is MEAN to believe in utopian good intentions and hopelessly complex social engineering schemes that not only fail to ameliorate the true suffering that exists in our fallen world, but will also make it that much harder for those who are trying to play by the rules and be self-sufficient to have the spiritual and material resources they need to take care of themselves and not be overly-reliant on government.

As for the actual school board issues that I thought would be the focus of this campaign, I’m not sure that the outcome on the 5th will help us come to terms with the very real problems we all face as a school community. My opponent Mr. Dorsey criticized me for voting against recent school district budgets, and then his party put up signs saying to stop the cuts to our schools and vote democrat. Hmmn? I know that democrats Kevin Buraks and Karen Cruickshank voted for every district budget these last four years, and I voted for one. Who then voted for the cuts? I was for the cuts if they were also coupled with a more prudent use of our over $30 million reserve fund to cushion the blow to taxpayers during a recession. Since that did not happen the last three years, and we raised taxes higher than we should have and still produced surpluses – I voted against those budgets. Someone needs to tell me which side acted rashly and radically?

Now that I’m off the Board, I can also make clear that when we were negotiating our last teacher contract, which was indeed better than the last one (but that wasn’t hard – average salaries rose 8% per year under that one with virtually no teacher contribution to health care), we were told by our chief negotiator Jeff Sultanik that our $30 million fund balance was a major liability in our bargaining position with the teachers. That is why the leadership of the Board moved $10 million out of the fund balance into the capital fund where it could not be touched. Now, we do have anticipated capital projects that need to be paid for, but the more traditional approach would be to issue a bond and have more than one generation help pay for the capital expenditure. I would have also developed a more transparent plan to draw down some of these reserve funds in a coherent fashion to help cover our growing pension obligations. Instead, the board leadership decided to use part of the fund balance to give our teachers another bonus to help buy labor peace, and not to give our hard-hit taxpayers a break.

I now hear rumblings that the teachers are indicating that they have given all they can give, and that they will not accept further salary and benefit concessions, so my guess is that they will be looking at that reserve fund as ripe for the picking. What will Mr. Dorsey and his allies do then – another pay-off bonus? My guess is that they will also argue that we need more revenue, and with the Act 1 caps in place, they will say that they are forced by circumstances out of their control to adopt an earned income tax for approval by the voters. My position, not surprisingly, would be different. To be clear, I would NOT call for a cut in teacher salaries (just FYI, the average teacher makes over $85,000/year plus pension and benefits for 10 months work), but instead would reduce the rate of growth in teacher salaries by completely revamping the salary matrix, instituting pilot merit pay programs, and asking teachers to pay private-sector levels for their health care. Now that I am off the board, there will be nobody making those kinds of arguments, and your taxes will continue to go up without any commensurate increase in enrollment or academic achievement.

Of course these positions I suggest are not easy to take – some would call them MEAN – but I don’t think realism is mean. It’s actually what is called for when adults confront tough issues, instead of relying primarily on emotional appeals. I do think that conservatives need to do a better job of appealing to both the heads and hearts of our community, but that does not mean we shouldn’t make the necessary changes to our system because it might offend those that stand to gain the most from maintaining the status quo. This is what Edmund Burke, the father of modern conservatism, meant when he reminded us that “a state without the means of some change is without the means of its conservation.” In an ironic twist, it’s conservatives like me who are calling for prudent reforms to the status quo financing of public education in order to save the system, while it is forces on the left – the public sector unions and their democrat allies – who are conservatively maintaining an unsustainable system. I’m for change, and my opponents are for the status quo – who is for hope and change now?

Finally, a few words about the disturbing tone and declining civility of our local politics. Two years ago I was the only school board member in Tredyffrin who spoke out publicly against some of the tactics employed during that election cycle. The issue was the EIT, and while I am strongly opposed to such a measure, I did think we needed to study it, and probably have a public referendum on it to finally put the issue to rest. There were misleading mailings sent out on this issue, and I took a lot of heat from my side of the aisle by speaking out against them in a public meeting. I also had written a letter to the editor prior to the election making my opposition clear, but the Suburban refused to run it given its timing (I have the letter and emails to prove it).

That was not an easy thing for me to do, so I was very disappointed that my opponent Mr. Dorsey forgot what I did and proceeded to launch a negative campaign, not against my school board record, but my closely-held beliefs and educational career. I can tell you that it hurt to have so many people on election-day cast disparaging looks my way, as if I was a leper or worse, because I believe in and work for the Constitution, free enterprise, and traditional values. I guess Mr. Dorsey also forgot how we collaborated together on the bipartisan survey and forum I did with Sean Moir to help increase public input into school affairs. I know Mr. Dorsey is a preacher and believes in Christian values like turning the other cheek, which I certainly plan on doing once I pull the knife out of my back. Eh Tu, Scott?

In the end, we need a better brand of politics that treats rival beliefs not as heresies but as differences between means, not ends. We all want the same things for our community, we just disagree on the size and scope of the government that is required to help us get to where we all want to be. I for one would love, as a start, to completely shift the ratio of taxes we pay, so that most goes to our local governments, then the state, and the rest to Washington. If that happened, not only would there be greater accountability, I think you would be surprised by the new political alliances that would emerge, because I know my brand of communitarian conservatism has a lot in common with such left-of-center causes as historic preservation, open space, local agriculture, the new urbanism, and anti-box store campaigns.

Now don’t get me wrong. I also think Americans as a whole pay far more in taxes than we should (right now, the average American pays 45% of their income in locals, state, and federal taxes, and I think the maximum should be around 30%). I believe that because I would rather allow Americans to keep more of what they earn so they can practice private charity rather than compulsory government assistance, and to take care of their own problems rather than relying too heavily on government welfare. Of course, you are free to disagree with me on this, but that doesn’t make me mean-spirited (and to think so might make you narrow-minded and overly-ideological).

What I am hoping for is an entirely new political paradigm that rejects the old bromides of the right and the left, and the cynical politics of personal destruction, and instead looks hard at the pressing issues of the day and offers common sense solutions and not bumper stickers. And since I now have a lot more time on my hands, I’d be interested in helping begin a new conversation, perhaps even a new coalition, that would be inclusive and not exclusive, that would be open to tea partiers and occupiers, to libertarians and greens, to independents and partisans of all stripes, not because we will always agree with each other, but because we value each other’s opinions and are more interested in the public good rather than private interests that tend to dominate our politics (along with the insiders who benefit from the same old fights).

After all, wouldn’t this be a lot better, and a lot funner, than what we just went through this time around? I certainly would hope so.

Thank you for taking the time to listen to this apologia, and for the great honor of representing you on the T/E School Board. I look forward to continuing the conversation.

Sincerely,

Richard Brake
Berwyn. PA

Tredyffrin Township’s proposed 2014 budget discussion

I attended Tredyffrin Township’s 2014 budget open house yesterday. Although advertised and open to the public, the 8:30 AM meeting was sparsely attended. Of the five residents, four of us were there last year for the review including Ray and Carol Clarke and Bill Bellew. Supervisors Mike Heaberg and Phil Donohue who are members of the Finance Committee attended as did newly elected supervisors Murph Wysocki and Mark Freed. Township staff included township manager Bill Martin and business manager Tim Klarich.

The supervisors and staff could not have been more forthcoming and open about township business and the 2014 budget. We enjoyed the opportunity to ask questions and discuss strategies. My only regret is that there were not more residents in attendance. Both relative newcomers to Tredyffrin Township, the level of professionalism, knowledge and willingness to share information is unsurpassed in Martin and Klarich! Residents are lucky to have these two working for us! A special thank you goes to the supervisors (current and newly elected), who took time from their ‘day jobs’ to attend.

Thanks to Ray Clarke for providing his personal notes from the meeting:

Residents should be grateful for a few things about the Budget Open House. The Township Manager, Finance Director and Accountant and two Supervisors (Heaberg and Donohue) took a couple of hours to respond to residents’ questions. They were knowledgeable and forthright about the facts and the bases for their assumptions. Our incoming Supervisors were also there. Disappointingly, though, only five residents were able to attend.

It was clarified in Monday’s BOS meeting that the Township is in fact budgeting a deficit for 2014, and that the projected increase in taxes noted in the General Fund Revenue tables on, for example, pages 5 and 19 of the Preliminary Budget posted on line, is in fact driven by a $600,000 contribution from Reserves, equal to the projected surplus for 2013. Our officials support this decision by thinking in terms of a “24 month budget” and by pointing to upside in items such as general transfer taxes, which are currently projected to fall by $300,000 next year.

It’s a relevant observation here that the real estate tax rate that of course gets so much attention, determines only half of the township revenues, with the majority of the remainder (transfer taxes, permit fees) much more subject to the vagaries of the economy. So a percentage over- or under-shoot in the township top line is equivalent to twice that impact on the property tax rate.

So, as we look out beyond 2014, the built-in contractual 2-4% salary increases, pension fund contribution increases (we are sensibly ratcheting down the assumed rate of return), and increases in employee and retiree healthcare benefits, present a great risk of future tax increases if that $600,000 reserve fund contribution can not be replaced. Upsides that were mentioned included the transfer tax and ongoing property tax benefits of new developments, particularly from the old Richter property and Chesterbrook shopping center. Also, on a six or seven year horizon, most of the current bond debt should be repaid.

Our officials, though, were reluctant to think more than one or maybe two years ahead, citing uncertainties in both overall economic conditions and local development outcomes. This position seems rather alarming, but perhaps is bolstered by the fact that both our general and capital reserves are healthy enough to weather some adversity.

A few other random observations:

A large part our Township activity shows up as capital spending, and here property taxpayer dollars are even more leveraged – almost 1.5 to 1 with state and federal grants. The capital reserves seem well able to support the $10 million of township funding required by the five year capital budget with its accelerated road paving, some stormwater mitigation, Church Road bridge replacement, etc. One cited constraint on doing more was the finite capacity of our staff to manage more projects, which of course cycles back to the General Fund decisions.

The average cost per FTE for healthcare benefits for all township employees is $16,400, and this is after a change to a high deductible plan (for which the township picks up the deductible). For the 49 FTE in the Police Department (42 uniformed officers) the average health benefit is $19,743 per FTE. High numbers, even for those of us used to the School District plans (which are being managed down). And apparently these are not even considered “Cadillac” plans. The state-governed negotiating environment makes it difficult to change Police plans, as we saw last time around; it was suggested that our next contract, beginning in 2016, would continue to be challenging.

We need to remember that the police contract also provides for lifetime family healthcare benefits, a cost recognized in General Fund Expenditures as OPEB ($414,000, part of the liability incurred for current employees) and Retiree Health benefits ($655,000, up $75,000 over 2012, the cost of premiums for retirees). These two together are probably more than the yearly liability incurred for a current police employee, (say one year of retirement healthcare for every one year of employed healthcare?) so that’s comforting, but not as discomforting as the corollary that the previously incurred ~$30 million liability is only funded with $2 million. The BOS has a fine balancing act to keep this cost manageable, avoiding keeping today’s taxpayers responsible for all the omissions of the past. I would like to see the current full annual incurred liability clearly identified in the accounts.

Apparently state law is being changed to ensure that there are fewer ways for large commercial transactions to avoid the transfer tax, which should increase the value of that flow. At the moment, the Township policy is to reserve these revenues (~$1 million this year, projected $0.5 million in 2014 for vehicle and equipment expenditures ($0.35 million in 2014 and $0.6 million for the two years thereafter).

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