Part of my job as a real estate agent is to help homeowners determine the fair market value of their home. The industry calls this process a CMA (Comparative Market Analysis), and usually takes place at the homeowner’s kitchen table. For many years this was a happy, exciting experience as the homeowners would come to realize the reward of homeownership and the monetary compensation associated with its sale. Twenty to thirty years of responsible mortgage payments coupled with never ending hours of maintenance and repairs were finally about to pay off. A comfortable retirement was about to become a reality and relocation to a dream destination was finally on the horizon. Prior to 2006, this scenario was ubiquitous throughout the country, especially so in our own Putnam County. Unfortunately, for many of us, the scenario no longer exists.

The once happy, exciting experience has become one of misery, disbelief and heartbreak. I hope you never have to sit across the table from devastated, crying adults when the realization that much or all of their equity is gone and retirement is no longer an option. This is not happening in Detroit or some European country. This is happening right here in Brewster, NY. It is happening to our friends, neighbors and co workers. I know many of them personally. They are being forced to sell their home because they can no longer afford their mortgage payment. Many of them are usually 2-3 months behind when they contact me. Many of them owe the bank more than their house is worth. Many of them have lost their job or have had their hours cut dramatically. Whatever the reason, this scenario is now the norm and over the last 3 years has escalated to a point where it now applies to 8 out of 10 homeowners seeking a CMA in the Town of Southeast. All of these people do have one thing in common. When they first purchased their house, eight, ten, twelve years ago, they were all very capable and comfortable making their mortgage payment. So what has changed? Granted, the terrible economy and housing crash is certainly to blame in some cases. In all cases however, the one thing they all universally have in common is their property taxes have almost doubled since they purchased their home. I repeat, their property taxes have almost doubled since they purchased their home. Over the same period of time salaries have remained the same or have even diminished, food and gas prices have soared, public transportation and tolls are out of control, we witness empty store fronts and out of business signs all over our town, the once thriving private sector is in shambles and yes the big ticket item, property taxes, have almost doubled for all of us.

The Putnam County Courier has just reported the “initiated” foreclosure rate in Putnam up from 245 in 2011 to 299 in 2012 for the same period. The housing market is not getting better it is getting worse. Initiated means the bank finally took action. The number of homeowners, ignored by the banks, that have fallen behind in their mortgage payment is not reported. Trust me, that number is staggering and would further devastate the economy if reported. I personally know people who have not made a mortgage payment in months, sometimes years and are still living in their house. One thing and one thing only can stop and start to reverse this devastating trend. A total freeze of property taxes immediately.

Property taxes are the number one reason homeowners find difficulty making their, once easy, mortgage payment. Property taxes are also the number one reason selling a house in Southeast and throughout Putnam has become extremely difficult. Scores of potential buyers love the area and love the houses but run for the hills when they see the unaffordable taxes. It happened to me last year more than I care to remember. Ask any real estate professional in any town in Putnam and they will concur. Property taxes have made Putnam County out of reach for the first time homebuyer. The majority of sales throughout our area, last year, were short sales and bank owned properties. This trend further decreases home equity as the value of surrounding properties plummet. The rest were desperate homeowners that settled for far less than they would have ever dreamed just a few years ago. All of this has happened because our property taxes have increased every year since as far back as I can remember. This has to stop and it has to stop right now!

Why do our property taxes increase every year? Your property taxes consist of two components. Approximately 80% goes towards your school district (teacher salaries, benefits, transportation, heating, maintenance etc.) and approximately 20% goes to your town (police, highway dept, town employees salaries etc.) Every three years the teachers union comes to town to negotiate, with school administrators, their contract demands for the next three years. They are in Southeast right now, negotiating contract demands for school years 2013-14, 2014-15 and 2015-16. Here is a typical example of how the union operates. Historically the union will demand, from district homeowners, 5 or 6 % pay increase every year for the three year contract. That will be negotiated down to 2%, 2% & 2% over the three year period. The negotiation will then be championed as a victory for the homeowners when in fact nothing is further from the truth. The truth is teachers’ salaries are guaranteed to increase every year for three years therefore your taxes are guaranteed to increase every year for three years. It’s that simple. It’s that black and white. The teachers union does not care if 20 / 30 more Brewster homeowners are forced into foreclosure as a result of their outrageous demands that we can no longer afford. The teachers union has only one agenda. A pay raise for the teachers means an increase in union dues. I repeat, a pay raise for teachers means an increase in union dues. Now multiply a modest $5 a month increase in union dues by the millions and millions of teachers across the country. That’s every month; Wow! The union solidifies it’s powerful control over the countries school districts and strengthens its influence over politicians in Washington, through monetary campaign contributions. You and I are paying for this corrupt system that keeps union bosses, across the country, in their cushy, overpaid, powerful positions. This has been going on every year for as long as I can remember. I bought my current house 9 years ago. The taxes were just over $8,000. Today they are close to $13,000, an amount I can no longer afford. Am I to assume and accept the fact that 9 years from now they will be $18,000. When and how does it end? I say it ends right here and right now. I need your help; I can’t do this alone.

I am speaking for everyone who has signed this petition. This year the homeowners of Southeast are demanding from our Board of Education members to tell the union 0%, 0% & 0% for the next three years. A total freeze on all school and town related salaries and benefits for the next three years is the only way the devastating financial condition many homeowners are in can begin to reverse and mend itself. We need to clear the housing market of all bank owned and short sale properties before any economic recovery can begin. Raising property taxes will only add to the existing inventory of distressed properties. Distressed sales are eliminating whatever equity surrounding properties have. We are bleeding equity out here and have been for many years. It the teachers union gets its way then, of course, the police and highway dept will also have to get a raise. So would all the town and county employees; and so the existing, vicious, unfair cycle of unionized extortion will continue as the status quo. We will no longer except this “business as usual” approach. Again, with all due respect to the board members, please stand firm and represent your constituents. Tell the union zero, zero, and zero. As a matter of fact, should a freeze in taxes result in a school budget deficit, inform the union we expect them to provide the shortfall from the dues they already collect. Tell them the Town of Southeast will not let them hold our children hostage with threats of a strike. We would reject this approach and challenge their empty threats. It is time for all of us to stand together and protect our community from uncaring, disconnected, foreign, destructive forces.

I would like to address the teachers in our district. Make no mistake about this; we love you and the job you do. I think I speak for everyone who has signed this petition. You are outstanding professionals; you have and will continue to care for and educate our children. Please do not take this as a personal attack and understand the plight of those who pay your salary through property taxes. At this time, we simply cannot afford higher property taxes. Many of you may live in Southeast. A contract raise would mean more foreclosures resulting in your property losing another 10-20K. This is true wherever you live. If you are a homeowner in any district, a union raise means a reduction in the value of your house. It’s that simple. Is the union raise worth additional property value loss? As homeowners we have already lost a solid 30-40% of value and yet our property taxes continue to skyrocket.

We understand it is the union and not the members that will be demanding a raise. I am sure many of you are quite content with the salary you already make. No one in the private sector meaning electricians, carpenters, truck drivers, deli and restaurant owners, the local dry cleaner, or anyone self employed has seen a raise in the last five to six years. On the contrary, many of them have had a significant reduction of income or have lost it completely. These are the very people the union would be demanding give you a raise. The very thought of it is incomprehensible. In years to come, when the recession is over, when unemployment is back to 4% nationwide, when housing values are increasing not decreasing, when short sales and foreclosures are no longer the norm, and Commercial “for rent” signs are gone from the windows, the residents of Southeast will be glad to entertain future union demands. Until that time we ask that, as the educators of our children, please put their welfare above the union agenda.