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About
When I was 46 I started writing essays on life, or the state of
the human condition as I once called it. Because I was halfway
between old enough to vote (21) and planned retirement (72) it
was known as the "Halfway Point" series of essays.
Later when I mentioned the essays in one context or another on
USENET, I got requests for copies and eventually for
future essays. Thus the mailing list was born, and it moved to
the Internet when that became widely available. At that time I
moved to writing on a schedule, the 1st, 11th, and 21st of the
month.
Now the trend is to "blogs," and read on demand. I am therefore
making this available as a blog, and we shall see if people read
it here, or by mail, or not at all.
My other writing
OddLinks - informal comments
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UpstateNY - why a property tax cap can't work long term (09:53)
I was against the new NY State tax cap in property taxes, because in
the long run it can't work, nor can any approach which limits income
but not cost.
The state has capped the increase in property taxes for smaller
municipalities to 2%, as a tax cutting measure. While this sounds
good to the innumerate, limiting county and city income creates a
problem rather than solves one. The reason local taxes are so high
(mine are supposedly the highest in the nation) is that expenses are
going up.
Let's look at causes before talking solving cost through
efficiencies:
- Unfunded Mandates -
the state can, and has, and will mandate that counties and large
cities do certain things on behalf of the state. The state
doesn't pay for these services, so there is no penalty to the
state legislators, and state taxes don't go up. Medicaid is one,
but New York is very concerned about the poor, as long as
someone else has to raise taxes to pay for it.
- Cost of living increases
- things cost more, and the current method of limiting
inflation, recession and high employment, is unpopular.
Therefore any approach which limits revenue increases to 2% is
bound to be less, perhaps far less then enough at times. And
employees cost more, because they need to be paid more so they
can afford to live. Holding down pay only helps if the pay is
generous, after that low wages result in low quality people,
every position being an entry position, employees leaving as
soon as they get some experience on their resumes, etc. Turnover
drives training costs, and providing service with inexperienced
people and those no one else would here, is a ticket to bad
service. Politicians hate poor service, it leads to unhappy
voters and turnovers in office, too.
- Infrastructure costs
- roads and bridges are aging and crumbling in many localities,
for the most part these are old cities and towns. My street is
being repaved as I type, after being designated the worst street
in the city, due to using the lowest bidder the last time. The
first thing the city did was give us a truckload of cold patch
and a Rough Road sign,
but ridicule of that "solution" forced the repaving.
If the roads are old, what's underneath is old, too. The water
lines and sewers are both aging and to some extent obsolete, and
it's hard to keep the streets paved when you have to dig them up
regularly.
- Environmental issues
- there is increasing cost to limiting damage to the environment,
but there is also increasing cost associated with damage from the
environment. Special interests have limited the regulation of
coal plant emissions, so cheap sulphur rich coal can be burned,
and few filters limit sulphur in the exhaust. So on the east
coast the lakes are dying, and buildings and roof materials are
being dissolved with acid. Anything in a part of the country
where water freezes and thaws has additional damage as any
slight roughness of surface turns to scaling, and large cracks
turn to total failures.
- Pension costs - the
Governor wants to limit salaries for administrators, which takes
away the option of hiring a few really good people at the right
level to make things work better. See below for another
approach.
If you expected to find a clever solution here, at least in terms of
a cheap or quick solution, look to
politicians, they will always promise a clever solution until the
day after election.
Just for grins, here are my thoughts on these things:
- Mandates - have the
government which passes the mandate fund the mandate. Leave the
choice of paying the local government to do the work, hiring a
service to do the job, or doing it at the mandating level.
- Cost of living - the
state wants the local governments to merge. That doesn't scale
well, government should serve local interests. However,
encouraging merged purchasing to improve discounts, reduce
personnel count, and hopefully allow the best people to
negotiate prices, and full or partial merging of highway
departments, up to some level where administrative costs match
economies of scale, do seem useful.
- Infrastructure - the
way to limit cost seems to be buy good goods. Contracts should
go to the lowest qualified
bidder, and if a road is to be repaved, consideration given to
replacing what's under it. Obviously on a case by case basis.
Stop building new roads. No, really. And raise the gas tax for
highway maintenance by a dime a year for a decade. This will
cover inflation (the tax hasn't changed in years), faster
rebuilding, and encourage voluntary purchase of economical
vehicles. Mandating "better gas mileage" reduces choices,
forcing buyers to consider the choices increases choices and
makes the buyer happier with the choice.
Pre-fund roads and bridges, don't just fund the construction,
require payment up front for maintenance. Put the future costs
in a lock box allocated to just that project. This would
discourage building roads and bridges which aren't really
needed, and make the real cost clear. It would also encourage
using better materials, such as corrosion resistant steel in
girders instead of or in addition to painting, better road beds
under the pavement, perhaps concrete rather than asphalt in the
north.
- Environment - time to
pay for pollution, this is one of those "you can pay me now or
you can pay me later" issues.
- Pension costs - cap
the salary which can be counted toward pension. Social Security
taxes and benefits are capped, government pension contributions
can and should be, as well. Allow Medicaid and Medicare to
negotiate prices for drugs and services just like private
insurance. No, it's not a perfect solution, it just makes the
cost of imperfection lower.
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