What If Revenues Come Up Short?

Supervisor Berman's 2009 town budget makes several optimistic revenue assumptions that may not come to pass. First it assumes that the town will realize $1,000,000 from mortgage taxes. Evidently Berman and the Board are unaware that real estate sales activity has come to a virtual halt in North Castle. The odds of the town receiving anything close to this amount are about as likely as Dr. Matusow's perpetual health insurance benefits being terminated.

Another unrealistic assumption is $225,000 in inspection and zoning professional fees. There is virtually no building or development taking place in North Castle now. Where is this money going to come from? Berman has yet to say.

Projected sales tax revenue is also potentially inflated at $1.4 million. The Board hasn't noticed the retail meltdown taking place in Westchester County. By the arrival of the New Year, many stores that were formerly household names will cease to exist. Actual sales tax numbers may be 10-20 percent below expectations.

So what happens if projected revenues comes up $500,000 to $750,000 short. This will require another more draconian round of budget cuts and further depletion of the general fund. North Castle will lose its Triple A bond rating, if it hasn't already--as a result of the adopted irresponsible budget. In addition, 2010 taxes will again have to be drastically increased to rebuild the general fund.

This is what happens when our elected officials refuse to face the fiscal realities that the rest of us must confront. By putting off the difficult decisions now, a budget bomb is just waiting to detonate.