Dan's Papers - August 1, 2008 - East Hampton In A Bind, Gets a $12 Million Dollar Bond

The future is now for the Town of East Hampton as the Supervisor and the Board begin the process of reining in the cost of local government that has caused the State Legislature to act to secure a bond to help pay down the $12 million deficit the town faced. Supervisor McGintee's aide Lynn Ryan said, "All departments are starting from zero, formulating their future budgets, we will maintain the status quo - no immediate cuts in employees or services." Another goal of the budget is to keep youth programs and human services budgets intact.

However, all department heads are being asked to cut back on non-essential travel and no new vehicles are to be purchased in fiscal year 2009. Ryan said, "The surplus of the past is gone. The tax rate was low due to the surplus." With town revenues coming from the county mortgage tax (its revenues down 42% this year), fees, and property tax it doesn't take a genius to know that both fees and the property tax will have to go up. Common practices such as private parties at the beaches are being evaluated. While they brought in minimal revenue in fees, they cost the town big numbers in police overtime. The town, of course, is also looking down the long dark corridor on the issue of re-assessment.

The budget discussions began at the August 1 meeting, as the process begins to shape East Hampton Town business for the future, going beyond the bickering of who was or is responsible for the deficit that has captured the headlines for so many months. The fact is, compared to the surrounding areas, the tax rate of the Town of East Hampton has been low. With the majority of the taxes paid going toward the schools, and those budgets voted on by the town, the blame game cannot continue to be levied on the present government. However, with the housing slump, the energy crisis and the uncertainties of Wall Street, there is much up in the air on the economic front.

Asked about the effect the town's situation is having on the local real estate market, the unflappable Ryan said, "It's actually the other way around. The question should be, what kind of effect is the real estate situation going to have on the town?"

One thing is for certain, the future budget will be scrutinized in a way that will put an end to the finger pointing and chorus: "It's McGintee's fault!" Board members vying for political futures will have to be responsible for what happens. Popular board members like Julia Prince, who received large vote totals in the last election, will have to earn the trust they were given. The future budget, taxes and cuts will have their fingerprints on it. The bright light of process is now shining on board members who hid behind rationales and excuses for the budget crisis. With McGintee's political career crippled if not ended, the liability now rests on those who plan to have a future running town affairs. This budget process is going to be their litmus test.