Cash for Clunkers: Success is a matter of perspective

It would be nice to think that we've finally heard the last of the Cash for Clunkers program. Unfortunately it seems like every day yet another story emerges to remind us why Congress should resist the temptation to meddle in the free market. Maybe politicians, like doctors, should take an oath to first do no harm ...

Program became 'nightmare' for dealers, customers
By Michael McCord
August 23, 2009 6:00 AM

When FS Gilbert of Rollinsford went to a local dealer in Dover to take advantage of the "Cash for Clunkers" program, he was quickly approved to trade in his 2000 Windstar van for a more fuel-efficient automobile.

Nearly a month later, Gilbert will take possession of his new ride today. According to Gilbert, the Dover dealership said it had still not received approval from the National Highway Traffic Safety Administration but was going to release the car to him. Gilbert is not alone in his frustration on the bumpy road to a new car — as of Thursday, 90 to 95 percent of applications nationwide had yet to get either NHTSA approval for their deals or been paid the $3,500 to $4,500 rebate. (more)

Exeter owed $3.5 million in unpaid taxes, bills

No one should be surprised that some people don't pay their bills, especially their tax bills. What is surprising is how government reacts. Taxes are supposed to be a fee for service. So when you don't pay your taxes you're getting the services for free and passing the cost along to your neighbors. Is that fair?

But as the Exeter News-Letter reports, some town selectmen are not exactly watching out for the taxpayers. If you don't pay your cable bill the cable company stops providing you service. Don't make your car payments and your car gets repossessed. But if you don't pay your water and sewer bills? Exeter will keep providing you the service, they'll increase taxes on your neighbors to pay for it, and maybe the selectmen will think about putting a lien on your property at some point.

Selectmen mull liens on property, water
Lara Bricker
newsletter@seacoastonline.com
August 07, 2009 6:00 AM

Selectman Robert Aldrich wants to know what options the town has to recoup some or all of $3.5 million in unpaid property taxes and other monies owned to the town.

After seeing a story in the Portsmouth Herald about the amount of unpaid parking tickets in the city of Portsmouth, Aldrich said he became curious about Exeter's outstanding revenues.

The amount of unpaid property taxes in Exeter has just about doubled from 2008, according to figures compiled by Aldrich from the town's Assessing Department. As of July 31, the town was owed $1,139,314.31 in back taxes, while in 2008 the town was owned $573,111.56 in back taxes.

The second biggest category of unpaid bills is water and sewer accounts. As of July 31, 2009, the town was owed $897,179.47 while in 2008 the amount of unpaid bills for these services totaled $549,318.34.

"There's a lot of money outstanding that's owed to the town of Exeter this year," Aldrich said. "This obviously has an impact on our operations and our bond rating, and everything else." (more)

Why not 'cash-for-refrigerators?'

Sen. McCain may shy away from free market solutions now and again, but it's absolutely bang-on in his criticism of the Cash for Clunkers debacle:

"I just don't think it's a proper use of the taxpayers' dollars," McCain told The HIll. "The argument can be made, 'Why don't we have cash-for-refrigerators?' Or cash-for-anything? It's just a very, very bad use of tax dollars."

McCain acknowledged the program has brought an uptick in car sales, but said the effects will actually be negative in the long run.

"The results will be temporary, and when the money runs we're going to see the distortions that it's created in the market," he said. (more)

Meanwhile, Seacoast Online columnist Lynda Bettcher recounts her amusing experiment with Cash for Clunkers. Well, it's amusing if you're not Lynda Bettcher.

City fights state's 'unconstitutional' cost-shifting

By Adam Leech

aleech@seacoastonline.com

July 22, 2009 7:23 PM

PORTSMOUTH — The city is joining other communities in the state and the New Hampshire Municipal Association in a potential lawsuit against the state for what they say are unfunded mandates that violate the State Constitution.

The New Hampshire Municipal Association — supported by the New Hampshire School Boards Association and the New Hampshire Association of Counties, 140 municipalities and 53 school districts — is currently considering legal action against the State of New Hampshire for cost shifting state financial responsibilities to local governments, which they say is in violation of Part 1, Article 28-a of the State Constitution.

The Legislature downshifted more than $117 million in state costs to local governments in the 2010-11 state budget, according to NHMA.

“We believe that we must start legal proceedings against the State in order to challenge this unconstitutional action and stop the downshifting of state obligations to local governments,” said John Andrews, executive director of New Hampshire Local Government Center, home of NHMA. (more)

Smoke, mirrors and shiny objects or a balanced budget

Lily Robertson has some advice for state budget writers at Seacoast Online:

Here’s a wild thought. How about acting like a responsible family? If you can’t afford something, don’t spend money on it. Maybe the new X-Box will have to wait another five months. Maybe the bridge restoration project will have to wait until next spring. When things get tight for a family, the parents don’t make the kids start forking over their Birthday money from Grandma. They just don’t go to the movie on Friday because they can’t afford it right now. The kids didn’t get the family into debt. The adults who didn’t spend the family budget responsibly got the family into debt.