Money matters in Putnam. How is the state of the economy affecting our neighborhood?
In his 2008 State of the County Speech, Robert J. Bondi, our County Executive, said he was “extremely concerned” about Putnam County’s economy. While the county came in under budget in 2007, Bondi is concerned that the increasingly difficult economic condition that faces our nation will have a domino effect on us here in Putnam.
Bondi is hoping that residents will only have to pay a 5% increase in Putnam’s 2009 property taxes, but if the county’s revenue doesn’t keep up with projected spending increases, taxpayers will face a 22% property tax increase. This should be a concern for all Putnam residents.
But the challenges facing Putnam’s economy mount as the second largest employer, Watson Pharmaceuticals, is closing its doors and Guideposts, another larger employer, just laid off 65 workers on March 14th. Bondi is also concerned about the pending state budget that proposes shifting costs, such as the Family Assistance and Juvenile Detention programs that have historically been paid by the state, to the county level. This would increase the country’s mandated spending and affect the budget severely.
To add to the bad news, foreclosures in Putnam County have risen from 180 homes in 2004 to 428 in 2007. The sad news is that this trend is increasing. During the first two months of 2008, 80 homeowners lost their homes to foreclosures.
The depressed housing market in Putnam also affects the amount of revenue the County receives from mortgage tax and other fees associated with selling a home.
Another big challenge facing Putnam’s economy is that two-thirds of the disposable income generated by Putnam residents is not spent in Putnam County.
Every dollar residents spend in other counties means less sales tax revenue collected by Putnam, which results in higher property taxes. According to Putnam County officials, if sales tax revenue were to increase there would be no need to raise property taxes to 22% in order to keep necessary public services up and running.
But things are not as bleak as they seem for there is hope. Each Putnam County resident has the power to help the community, and in turn help lower property taxes. Our goal should be to patronize local businesses, fill up our gas tanks before we leave town, and be opened minded to welcome new businesses to the community. We should participate in local governement, attend meeting (whenever possible) and vocalize our opinions. We must help each other. The old saying, “United we stand, divide we fall” rings true today.
We can make a difference - SHOP PUTNAM
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