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Scott Ott Executive Veto Validates Board BudgetPage of1 2
NEWS RELEASE November 12, 2012CONTACT: Scott Ott, vice chairman
[email protected] County Board of Commissioners.
610-810-1688 Lehigh Executive's Veto Validates Commissioners'
Budget Plan
Commissioners Need One More Vote to Override Veto On
WednesdayLehigh County Executive Bill Hansell proved that spending
actually can be cut and hevalidated the Commissioners' approach to
doing it when he vetoed their $5 millionspending cut last week but
substituted his own $3.5 million cut, according to board
ViceChairman Scott Ott. "The allegedly impossible can be done, and
done quickly," Ott said. "In just seven daysMr. Hansell found 70
percent of the cuts we directed him to find. We're giving him
morethan year to find the other 30 percent. We knew he could do it.
We told him so at thebeginning of the process when we laid out our
expectations for spending cuts and a tax-rate cut. There's no
reason for this veto."At this Wednesday's meeting (11/14 at 7:30
p.m.), the Commissioners will vote onwhether to override the
Executive's veto. They'll need six votes to do so. Republican
Commissioners Brad Osborne and Percy Dougherty voted with the
Board'stwo Democrats against the $5 million spending cut on October
10. While insisting they
favor spending cuts, they expressed concern that the amount was
too high. Osbornealso said he thought the Commissioners should
decide where to cut, rather than theExecutive. But Ott said the
Executive's veto strategy removes the amount objection, andaffirms
the approach, which he said is more in keeping with the separation
of powers inthe county's Home Rule Charter.Ott said he understands
that Osborne and Dougherty wanted to be sure theCommissioners'
amended budget is fiscally responsible. Now that the Executive
hasconfirmed it, Ott said he's hopeful that Osborne and Dougherty
will join CommissionersTom Creighton, Lisa Scheller, Vic Mazziotti,
Mike Schware and himself, to override theveto on Wednesday night.In
a 5-4 vote on October 10th, the Commissioners cut $5 million in
spending and gavethe Executive the choice of deciding where those
cuts would happen. (Hansell hasmischaracterized the Commissioners'
plan as requiring staff reductions. It does not.) Hisdirector of
administration, Tom Muller, said the Commissioners had refused to
makeline-item cuts because no cuts could be made. Muller said the
county is already on paceto run a $7.5 million deficit going into
2014. The President Judge, District Attorney,
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Coroner, Sheriff and other county officials each took a turn at
the podium predicting thedire consequences of any spending
reductions. However, for the past eight years thecounty has
predicted large annual deficits
and ended up with surpluses each year, Ottsaid, noting the $6.68
million averagevariance between the predicted deficit andactual
surplus. "That simply means there's enoughcushion in the budget so
that nothingcatastrophic would happen if the countyspent about 1.45
percent less in 2013 thanit budgeted in 2012, which is what
ouramended budget plan does," Ott said.Hansell also vetoed a
Commissioners'amendment that would cut the property taxmillage
rate, and he substituted his own version that cuts the tax rate by
40 percentless. The administration had portrayed a millage-rate
reduction as irresponsible,proposing instead a one-time discount
that would leave the rate at 11.9 mills where it
jumped after the 16 percent tax hike in 2010. Ott said he's glad
Hansell has taken a secondlook and realized a tax-rate cut can be
donewithout increasing the deficit, if spending cuts
are included. However, Ott added, "More can be done to keepmore
money in the hands of Lehigh Countyresidents and small business
owners. Cuttingthe tax rate, rather than issuing
temporarydiscounts, is the right approach. If the Executivewants to
raise rates in the future, he shouldhave to fight for it. The 16
percent tax hike of2010 should not become the 'new normal.'"
--30--
$0
$2,250,000
$4,500,000
$6,750,000
$9,000,000
2011 2009 2007 2005 AverageAverage
Budget vs. Actual Spending Variances 2003-2011
Data Source: Lehigh County Financial Statements
$5 million
Data Supporting Chart Above
General Fund Budget v. Actual
Variance
2011 $
8,122,2612010 $ 7,824,1652009 $ 5,320,8132008 $ 5,573,4192007 $
7,655,4562006 $ 5,734,4952005 $ 6,100,8652004 $ 7,124,735
Average $ 6,682,026
