The following is from a formal nationsl association newsletter for City Managers, that is widely read:
" Cities Face Declining Revenues."
The Wall Street Journal (9/1, A5, Eaton) reports, "The recession is finally hitting city budgets, with overall city revenues inching down in fiscal 2009 for the first time since 2002, according to a report to be released Tuesday by the National League of Cities." The decline in revenues is attributed to "weak growth in property taxes," and "sharp declines in other sources of income, including sales taxes, income taxes and state aid." Across the country "city revenues declined by 0.4%, even as expenses rose 2.5%, and city officials expect steep drops in tax collections in the next two years, making for the worst outlook in the 24 years the group has been surveying its members." Also, "two-thirds of the cities reported hiring freezes or layoffs. Almost as many cities said they were postponing big construction projects." In addition, "a quarter of the cities said they raised property tax rates," and "45% -- raised fees on everything from garbage collection to overdue library books."
The AP (9/1, Fouhy) reports, "The economic downturn has taken a toll on U.S. cities, forcing them to slash jobs, raise taxes and fees and limit hours of operation at libraries, zoos, parks and other popular facilities." Also according to the study, "about half of all cities maintained or even increased spending on public safety."
What could the next city budget look like and what actions or changes could our Mayor and City Council demand as a result? Higher tax rates? Higher fees? More cuts? Or most likely all of the above... The past "salad days" are over for local government with the fruits of higher income from assessments rising and a good economy. Now it is hard to lead and who leads will determine what is done. I only hope that they keep in mind that real people have to pay for their decisions. Then there is the question of who is going to get what, and that will most surely divide us even more!
Roger A. Leonard, MPA
10 comments:
We haven't heard a word about city layoffs. We have automated garbage truck routes now serviced by the drag and dump gangs to make work for overtaffed departments. Most importantly we have not heard anything about the fat state employee retirement plan being slimmed down. It's the same plan that bankrupted General Motors before the Obama-motors takeover.
Our little girl (who lives outside of Suffolk) in the City's Budget Office will instead find new and more bizzare means to pump up the revenue side with fees, charges and taxes. Her last foray has so many neighborhoods bristling at having to pay for bulk garbage pick-up that were once free they are ready to vote their councilman out.
The councilmen are on a tightrope as they raise more taxes and fees and also raise the ire of the voters. They are in the squezze and know it, but what to do? Expect to see the vote for higher taxes played out by those that will not run again and the others to hide as usual. Councilman Milteer will say one thing and do another for sure. "I'm for lower taxes", (but behind the closed door he agrees to raise them on us, again!). Time will show us all that this is the issue that will really find out who is who. Any bets that we will hear again how much they do for us as they dig deeper into our pockets?
I am confident that the council will do the right thigs to keep the budget and spending of our money under control. I was happy with the last budget and hope more of the same sanity is found in thier next effort. They will be talking soone about the next budget so encourage them to remain firm on NO NEW TAXES OR FEES! That includes the Budget Officer's efforts to raise every new fee she can find!
To solve our money problems the Mayor, Parr, and Gardy will help her husband do more land deals so there are more houses to tax and then all will be well in peanut city. The worst is here and it will get even more-worst!
SEATTLE (AP) | The main library in this book-loving city is an architectural landmark: a daring, contemporary temple to the written word that draws tourists as well as literary locals and those who just want a place to sit, read, rest or think.
Just don't try checking anything out, returning an overdue book or even logging onto the online catalog this week. The city's entire library system -- from its branches to book drops to Web site -- is shut down to save money.
"I think it's a very sad day -- week -- for the city of Seattle that they can't access their local library, which is one of the most heavily used libraries in the country," said Nancy Pearl, the city's ex-librarian superstar and the author of "Book Lust," a best-selling tribute to the joy of reading.
What will shutdown in Suffolk as we do the next budget? Could the SCCA be on the chopping block? Should be as that is a cool 1/2 million that could be saved.
Yes the worst is yet to come. I expect to hear that there must be higher taxes to keep government running. We will pay like the sheep we are.
Sheep get sheared, that is the way of life in Suffolk. We have not seen the worst yet and the newspapers just never get it until it is to late. Expect to pay even more for the priveledge of living in Suffolk. Cutting spending like the new garbage fees or SCCA give away are of the table, so your wallet will walk forward for more to be taken!
How bad can it be when we have the higher ups in the city getting paid off? Their illgotten gains will trikle down to the minion, woun't it? Just like the durg-dealer making big bucks and spendin it in the hood on cars, clothes, shoes, partyin and so on. The crooks in Suffolk will spend their dough and support us all.
It is a recession when your neighbor loses his job and a depression when you lose your's. With job uncertinty it seems likely that more underhanded deals are sure to come to light. When things are tight, the small people pull in their horns and slow spending. The powerful do jsut the opposite, they devixe methods to milk the system for even more to make up for legitimate losses. So Suffolk, if you think is is bad now, wait to see what comes next.
Suffolk's little girl at the Budget Office said we stand to lose $400,000 in state contribution because of the failing economy. Could it be that ACORN was right we don't need to pay taxes? Could it be that businesses are scaling back or is it the consumer fearful of job loss. Why worry Ms Seward will find the money one way or another forcably taken from us.
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