Morgantown: Social Welfare Success
Morgantown (population 35,000) was chartered in the same year as Enterprise, and that is about all it has in common with its neighbor. From the outset, Morgantown has been an experiment in social welfareism. And it appears the experiment has succeeded beyond anyone's expectations. First-rate healthcare, educational institutions, and amenities abound. The RPT (Rosa Parks Transit) buses people around the city smoothly -- and profitably. Even the long dormant Arlo Guthrie Train Station is coming back to life. Recent polls indicate virtually universal satisfaction with life in Morgantown.
Perhaps the most striking feature of Morgantown is its economic success. A recent survey showed the city's mix of business and industry has produced an overall GDP ($2 billion annually) roughly one fourth that of big business Enterprise, despite being only one-fifth the size.
And a funny thing happened along the way. In the beginning, Morgantown had the most steeply progressive tax rates in York -- 6% for low-wealth residents, 9% for medium-wealth, and 12% for the wealthiest. As a result, virtually no one with an income greater than $80,000 a year lived within the city limits. But over the years, Morgantown has become such a profitable operation that it has initiatted round after round of tax cuts. Today, the low-income personal tax rate is a miniscule 0.1%. The middle-income rate is 7.1%. And wealthier folks have begun moving into Morgantown as the top rate has come down to 8.1%. Says economist Irving Kanter, "The fact that the rich pay ten percent less in local taxes here in a self-described social welfare state than they would in most of Simolay is pretty amazing." He added, "And even with these tax cuts, Morgantown is still running an $80 million a year surplus." Indeed, Morgantown maintains a massive "rainy day fund" of $5.5 billion.
Pictured: The People's Cathedral and surrounds. Morgantown has capped growth in favor of preserving much green space. City leaders plan a massive tree-planting effort over the next few years.
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