Tuesday, February 2, 2010

Rain, rain go away and take McCoy with you

The Miami Herald reported on a budget meltdown taking place in Dade County. See if any of this sounds familiar:

"Facing a widening financial crisis, Miami leaders are already projecting a $45 million budget shortfall this year that could force the city to deplete its reserves and sell key assets to stay afloat.

Rising costs, slumping property tax collections and ever-growing pension obligations are feeding a meltdown that's now forcing administrators to look for drastic new sources of income not needed since the state took over Miami's books 14 years ago....

Today, a reserve that brimmed with $141 million in 2003 could plummet to less than $10 million by the time commissioners are finished with this year's budget in September, projections show. If that happens, Miami will break its own financial integrity laws -- prompting some officials to fear another painful state takeover.

``Unbelievable,'' said County Commissioner Carlos Gimenez, who was Miami's city manager when its reserves peaked in 2003. ``They forgot the lessons of the past.''

City leaders were also tapping into reserves to balance the books even as Miami was reaping record property tax returns during the historic housing boom.

``The problem was they were dipping into the reserve in some of the greatest boom years ever in the city,'' Gimenez said.

Based on the latest projections, the trend of siphoning the reserves will have to continue to keep the budget balanced. If that happens, the city would likely have to resort to dire methods to bring millions back in.

``We'll have to go and sell an asset,'' said Regalado, who declined to detail which city properties could be on the market. ``That is a potential remedy'.....

Besides the possibility of more department cuts and layoffs, a depleted reserve could hinder Miami's ability to issue bonds worth millions of dollars, including one to build a tunnel to the Port of Miami and another to bankroll badly needed affordable housing.
.." Article

First sign of trouble, any trouble, and Miami starting spending the rainy day fund. Now that they have gone through it, they don't know what else to do. San Francisco (Brad Chism's old client is leading the charge), several states, Baltimore, Toledo, Fort Lauderdale, and other governments are either thinking about or actually draining their rainy day funds.

So Billy McCoy, Cecil Brown, and the rest of you geniuses in the House, answer me this: What do you propose to do after you have used up the rainy day fund and tax collections still decline?

12 comments:

Anonymous said...

Cecil Brown actually IS a genius and is so ethical that he returned his unspent campaign contributions prorated by the percentage of the total contribution.
He's also a realist and respected on BOTH sides of the aisle.
Aside from that, he's a helluva financial manager...no one else I know has done as well...including national celebs.
Cecil is as fiscally conservative as anyone I know and would STILL be a Republican if our locals hadn't been such idiots at the time Mabus asked him to serve his beloved State.
KF, check out who Cecil's frat brothers were at Ole Miss and see if you can go back in the archives and figure this out!
He should have been a leader in the Republican party!

Anonymous said...

Brown may be fiscally conservative but only with his own money and that of his clients. When it comes to taxpayer dollars, he's ready to spend 'em as fast as he can snake 'em out of our pockets. In his government life as a Democrat Cecil Brown is a tax and spender first, second and last.

Kingfish said...

Well, my worry is that they spend the rainy day fund and then we are screwed when we really do need it.

Kingfish said...

and the most expensive place in Jackson is anywhere Brown has a budget pen.

Anonymous said...

5:27 and KF, I think y'all need to actually talk to Brown.
You may disagree with some of his vision , like the idea that education is important for Mississippi to prosper, but I don't think after listening to the difficult budgetary choices involved and learning about some Federal requirements that AREN'T optional, you'd leave the conversation with a different view of him you currently hold.
There's a difference between what you want to be able to do and what you can realistically expect to do.
I spent more time with the legislature than any person should have to spend and Brown is one of FIVE out of hundreds that I still respect. He does his homework, he's honest, he actually loves Mississippi a tries to do the right thing for the State and he hasn't tried to PROFIT from office in any way. He doesn't NEED this job either. He actually IS a boy scout.

Anonymous said...

That should read " you'd leave with a different view of Brown".

Anonymous said...

I know Cecil very well. He's not a fiscal conservative in the legislature. He'd vote for tax increases tomorrow if such a vote made it to the floor. Yes, he's honest and ethical and a great guy but he's also in favor of tax increases. He'd rather see private citizens out of work before doing everything possible to squeeze every penny of waste out of Mississippi government. School district consolidation is one of the most glaring examples. Cecil Brown is simply is out of touch with the middle class in Mississippi.

Anonymous said...

10:25 "You may disagree with some of his vision , like the idea that education is important for Mississippi to prosper,"

Leave the bogus straw man arguments outside, please. No one here said education wasn't important for MS to prosper, and it's despicable to put words into our mouths. What smart people HAVE noticed is that what we are paying is not getting us what we want, and it seems ridiculous to spend even more and expect different results. Especially when spending more on waste has such a damaging effect on the rest of society (e.g., in anticipation of higher taxes this year we have stopped all contributions to every charity we have supported regularly for several years - tough for them, but better for my kids' college fund, and that's the top priority).

Anonymous said...

12:32 I don't disagree with you and neither, I expect, would Brown.
I didn't intend a straw man argument, just honestly noting that his committment to education is so strong as to my mind, occasionally lack objectivity.
You, incorrectly assume, I believe, that one man is responsible for the problem you describe.
I am suggesting, and strongly believe, that our budgetary woes would be FAR worse, without Brown's input into the process.
Most of our elected officials don't even understand the fiscal information they receive. Brown is about the only " translator" there is. And, we should be glad he's smart and more importantly HONEST in his translations.

Anonymous said...

Gee, why didn't ol' honest Cecil Brown go into detail about the nature of these funds, i.e. rainy day fund, tobacco trust fund, etc, instead of trying to hide his efforts, and that of his fellow Democrats, to pillage the rainy day fund right now. No, instead Cecil dodges accountability by using some gobbledygook language like "various unobligated state bank accounts".

The House has adopted a plan that would take $100 million of the more than $575 million in various unobligated state bank accounts and use it to offset some of the cuts the governor has made. We agree with the governor that we should not spend all of the reserve monies now. Our plan would leave $475 million to be used in the 2011 and future budgets.

Cecil sure must think that Northside Sun readers are stupid.

Cecil Brown ... a Tax and Spending Democrat from the word GO!

Anonymous said...

There's a difference between what you want to be able to do and what you can realistically expect to do.

Brown voted with the House Dimwits to sell the state jet. What a numbskull.

Anonymous said...

Sarah Palin got rid of Alaska's state jet too.

Compared the cost of operating and maintaining a private jet vs the costs of renting one, have you ?

Spending the "rainy day" fund...isn't it raining? If it's not raining now, whadda ya think a rainy day LOOKS LIKE?



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