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East Hampton Faces $12 Million Deficit

From the New York Post:

Town Supervisor William McGintee

‘LEA$T HAMPTON’ IS GOING BROKE

GLAM TOWN $12M IN THE HOLE

By SELIM ALGAR and ANDY GELLER

July 25, 2008

The town of East Hampton, playground of the rich and pampered, is broke.

How broke? Well, the town is likely to end the year with a $12 million deficit – and in recent weeks, it had only $900 in its bank account and barely made its payroll.

The dire straits have raised the specter of a property-tax hike.

But fear not, gentle millionaires and billionaires. The increase will be small.

Last month, the state Legislature granted the town a loan of up to $15 million to pay off the deficit over 10 years.

This eliminated the need for a big tax hike to begin paying down the gap.

Still, the crisis is not over, and there are cries for the head of Town Supervisor William McGintee, a Democrat. He blames the deficit on his predecessor, Jay Schneiderman, a Republican, saying the GOPer squandered a budget surplus. Schneiderman denies the claim.

Sources say McGintee, who took office in 2004 and is in his third two-year term, has decided not to run again

The town’s deficit, which was less than $1 million in 2005, has been widely estimated at $9 million. But Thiele said state auditors have found it is actually $12 million

McGintee did not return calls for comment.

Please note that the Democrat town supervisor tries to blame the former Republican mayor for the deficit.

Never mind that, as the article notes, Mr. McGintee (cf. Preston Sturges) assumed office in 2004, and even in 2005 the town’s deficit was less than $1 million.

And now, after four more years of Democrat oversight, it is $12 million.

It couldn’t possibly be his fault.

This article was posted by Steve on Friday, July 25th, 2008. Comments are currently closed.

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