Vikings pick Zimmer as new coach

Stage Listings: Jan. 3 to 9, 2014

First Posted: 12/31/2013 To save Luzerne County money, its outgoing controller recently offered a series of suggestions &#8212; at least one of which sounds as if it might be wildly unpopular but probably deserves to be followed, at least temporarily.
Scrap the homestead tax break.
Introduced in 2009, the homestead rule knocks off $10,000 from the assessed value of each owner-occupied home, which at 2014&#8217;s expected county tax rate amounts to a savings of $57 per homeowner. By eliminating the break, Luzerne County would collect an additional $4.5 million per year, according to estimates by Walter Mitchell, who had been appointed to the controller&#8217;s post in August.
Let&#8217;s say, despite likely howls of public opposition, the 11-member county council voted to approve a suspension of the tax break for three years. The debt-burdened government could pull in between $13 million and $15 million. That&#8217;s certainly not an appealing proposition to many taxpayers, whose 2014 bills already stand to rise because of an 8 percent tax increase OK&#8217;d last month by a council majority.
However, the bitter loss of the homestead tax break through 2017, for instance, could be made significantly more palatable if council committed to never spending that revenue. Ever.
Designate the full $13 million to $15 million &#8212; and all future interest and/or investment income &#8212; as a special, untouchable fund so that Luzerne County never again finds itself in its current situation &#8212; unable to even establish a credit rating because it is so debt heavy and cash poor. The lack of a &#8220;report card&#8221; from a major credit rating agency means the county government can&#8217;t refinance its multimillion-dollar loans from bygone years at today&#8217;s lower interest rates, because no financial institution will take it seriously.
So, yes, do away with the homestead tax break under the condition that the money gained will be preserved in perpetuity. Not exploited in future years to pay for capital projects or frills. Not gutted to fill gaps in yearly budgets. Not siphoned during a &#8220;rainy day.&#8221;
Use the cash as any financially savvy person would &#8212; to establish one&#8217;s self as able to handle money responsibly.
The people elected to run Luzerne County under the home rule form of government that took effect in 2012 inherited a terrible mess; hitting the &#8220;pause&#8221; button on the homestead tax break would indicate they remain committed to rectifying past borrowing and budgeting mistakes, and put the county in future years on better financial footing.
Mitchell deserves a nod of appreciation for again voicing this revenue-enhancing idea, which had been shot down as recently as 2010. Council should give it, and a multitude of other money-saving ideas, careful consideration this year, as its members commit to finally turning the page on Luzerne County&#8217;s sorry financial story.

OUR OPINION: HOMESTEAD EXCLUSION Halt tax break to restore county