By Gordon Fraser
Staff writer
March 09, 2008 08:15 am
Salem voters will decide more than $100 million in warrant articles this week at the polls and at Town Meeting, including proposals for a new $7.3 million police station and the first step in a major high school renovation.
The warrants in neighboring towns have big price tags, too. In Windham, more than $50 million is on the line. In Pelham, voters will decide on more than $90 million in spending. In all, 12 local towns are asking for $552 million in spending.
And while turnout for January's presidential primary set records, the number of people who vote in town elections is usually far lower, even though the items being decided can have a huge impact on their property tax bills.
In recent years, towns and schools in New Hampshire have increased spending by margins that far outpace inflation, according to a recent study from the New Hampshire Center for Public Policy Studies.
That doesn't surprise Charlie Arlinghaus, president of the free-market Josiah Bartlett Center for Public Policy.
"When housing values are going up significantly, it's easier for the government to get more money," he said.
In Atkinson, for instance, taxpayers shelled out 37 percent more in 2006 than they did in 2001, according to the Public Policy study. In Danville, taxpayers gave up 63 percent more in 2006 than they did in 2001; and, in Pelham, taxpayers gave almost 74 percent more, the study said.
Inflation during those same years only amounted to 17 percent, according to information from the federal Bureau of Labor Statistics.
"You can rein it only if you have an informed public," said Leon Artus, an Atkinson resident who has advocated for lower taxes.
The sharp increases in tax revenue don't necessarily mean individual taxpayers were paying more, though.
For example, the New Hampshire Center for Public Policy Studies report indicated that Salem taxpayers forked over $57 million in 2006, a 27 percent increase from 2001, when taxpayers gave about $45 million.
But Salem residents were actually paying smaller amounts each year between 2001 and 2005. A $300,000 Salem home would have been assessed $4,424 in 2001, then $4,015 in 2002, $3,822 in 2003, $3,590 in 2004, and $3,441 in 2005, according to tax-rate information from the town finance office.
That's largely due to the number of new homes and businesses being built during that same time period, giving the town more property to tax.
But for anyone who thinks government shouldn't grow by large margins year after year, these latest numbers are bad news.
"It's always a problem for government when they ratchet up spending during boom times, because it makes it much harder ... during the inevitable economic slowdown," Arlinghaus said.
Salem Finance Director Jane Savastano said most residents who speak to her seem more concerned with their actual tax bills than with the growth of town government.
"I think it's the tax rate. Everything is (driven) by the tax rate here," she said.
But, despite diminishing tax payments year over year, Salem officials have gotten their share of criticism about taxes — especially this year, when the budget and warrant articles could be 11 percent higher than last year.
Still, Savastano said, the town has done a fairly good job keeping costs under control in the face of rising energy and health-care costs.
"The intent in Salem, anyway, is to try to stay within a reasonable increase," she said. "We did hit 3 percent last year."
Some towns are even forced to keep taxes increasing at a modest pace, but have still seen government grow.
The town of Derry has a tax cap, which means that the town tax rate cannot increase faster than the rate of inflation. But again, if there are more properties available to tax, the town makes more money.
"The town could theoretically raise more taxes if you had 20 more homes in town," Finance Director Frank Childs said. "But, obviously, services increase, too. You've got, possibly, more kids in school."
Derry's total appropriation from taxes increased 56 percent between 2001 and 2006, but that number includes the school district, which is not governed by the tax cap.
Growth in taxes, 2001 to 2006
Town, school and county combined
Town%2001 total appropriation from taxes%2006 appropriation%percent increase
Atkinson%$10.2 million%14 million%37 percent
Danville%$5.2 million%$8.5 million%63 percent
Derry%$42 million%$65.5 million%56 percent
Hampstead%$13.9 million%$18.4 million%32 percent
Kingston%$8.7 million%$12.9 million%48 percent
Londonderry%$39.2 million%$59 million%51 percent
Newton%$6.1 million%$9.4 million%54 percent
Pelham%$13.6 million%$23.6 million%74 percent
Plaistow%$12.8 million%$18.3 million%43 percent
Salem%$44.8 million%$57.3 million%28 percent
Sandown%$7.4 million%$11.1 million%50 percent
Windham%$19.9 million%$33.2 million%67 percent
Source: New Hampshire Center for Public Policy Studies
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