One of Haverhill Mayor James Fiorentini's New Year's resolutions is to increase the burden on struggling taxpayers.
He and the City Council ought to be resolving the opposite — to cut the cost of government dramatically.
The mayor, with three new city councilors taking their seats this week, is making the same pitch he made last summer — that the only way to avoid layoffs of city employees and significant service cuts is to raise taxes some more. He has estimated that an increase in the meals tax from 6.25 percent to 7 percent would generate $400,000, and raising the hotel tax from 4 percent to 6 percent would yield $40,000.
The councilors rejected it then. They should do so again.
The mayor is correct that the city has been hit by multiple financial challenges. Along with other communities, it has suffered a decline in state aid. It still has the financial burden of the remaining debt on the former Hale Hospital. The deepest recession in a generation may, technically, be over, but it continues for most people. That has led to a decline in consumer spending, which leads to a drop in fees and other local revenue.
But it is not true that the only way to cope with such problems is through layoffs, service cuts or new taxes. The mayor didn't even mention the elephant in every municipal budget — employee contracts.
Those contracts are far too expensive, and will sink the city into deeper debt even if it sucks another $440,000 out of taxpayers. They are structurally unaffordable, from work rules to sick leave to pension promises.
If the mayor and council do not get control of those, they will need to raise taxes again and again to keep up.
Another reason for councilors to say no is because the recession will not last forever. But a tax is forever. When good economic times finally return, will they then repeal the taxes they raised in 2010? Of course not.
Challenging times also are times of opportunity. The mayor and council should take the opportunity not to feed the government beast, but to get the city's fiscal house in order.
