News

November 2, 2009

2010 Barletta budget proposal includes layoffs, tax and fee hikes

By Steve Mocarsky smocarsky@timesleader.com
Staff Writer
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HAZLETON – A homeowner in the city with a $30,000-per-year job and a home valued at $100,000 could expect to pay another $235 in taxes and fees next year, according to a budget proposal Mayor Lou Barletta released to council today.

The scenario proposed by Barletta and his administration includes a combination of layoffs and a reduction in hours for six months for some City Hall and Highway Department workers.

The administration also released a second budget scenario that includes, in addition to the layoffs of City Hall and Highway Department workers, the lay-off of eight police officers for six months, resulting in a $20 smaller real estate tax hike to $225 for that homeowner.

Acting City Administrator Mary Ellen Lieb said the purpose of the second scenario was not to suggest police layoffs, but rather to show that laying off police would only save owners of a $100,000 property $20. The scanario was created because some people suggested laying off police officers to reduce city expenses.

“Anyone who knows the mayor well enough knows that the mayor has been opposed to police layoffs forever,” Lieb said.
Both scenarios include increasing the annual garbage fee from $208 to $240 and increasing the earned income tax collected to cover pension obligations from 0.4 percent to 0.75 percent. The EIT increase results in a $35 increase in income tax for every $10,000 earned.

The first scenario with City Hall and Highway Department layoffs assumes a real estate tax millage increase from 1.40 mills to 2.38 mills – a $98 increase for every $100,000 in assessed property value.

The second scenario, which adds police layoffs to the mix, assumes a smaller increase in real estate tax millage – from 1.40 mills to 2.18 mills – a $78 increase for every $100,000 in assessed property value.

Read the complete story in Tuesday's Times Leader.

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