Is Rehoboth on a Spending Spree?
There is an ongoing dispute about Rehoboth Beach’s budget — particularly its spending. Some people, including my competitors in the Commissioner election, claim that Rehoboth has no budget or spending problem because “the budget is balanced.” Others, me included, believe the opposite: that the budget is being propped up by unsustainable borrowing and that spending has grown far beyond any reasonable measure, especially the rate of inflation.
When Suzanne and I moved to Rehoboth Beach full time nine years ago, the city budget was $19 million. Today, it has exploded to $50 million. Cities our size typically operate on $13–$15 million. Our neighbors in Lewes, for example, operate on a $13 million budget. And since our current City Manager took office just two years ago, the budget has surged by roughly 25%.
Both incumbent Commissioners I am running against voted for this year’s $50 million budget. I would not have supported such a budget. So the question is simple: Who is right? Is our spending under control — or out of control?
As a Ph.D. economist, I believe decisions should be grounded in data, not slogans. Seeing is believing. So I created three charts:
1. Inflation over the last ten years
2. Rehoboth’s budget over the same period
3. A combined chart showing the two together
All three charts are available at above
The third is the most revealing chart. The picture it shows is unmistakable. Rehoboth’s expenditures have grown far faster than inflation for an entire decade. In the last two years alone — the tenure of our new City Manager — inflation rose 2.6% and 3.8%, while Rehoboth’s budget jumped 13.8% and 13.9%. That means city spending grew at more than three times the rate of inflation.
Not once in the last ten years did Rehoboth’s spending grow at or below the inflation rate.
To me, the conclusion is clear: Rehoboth has a serious spending problem, and it must be brought under control. And it is equally clear that we need leaders who will stand up for the taxpayers — not for the bureaucracy at City Hall.