One of the Oldest Budget Tricks. Is It Still Being Used?

September 5, 2009 1 Comment

cggazette.com tells the story about past administrations using funds for unstaffed positions for other purposes.

Under David Brown, practically all departments, especially those headed by his favorites, were brazenly undisciplined, fiscally and administratively. Annual budgets routinely, and perhaps purposely, had over 30 unfilled positions, money which formed a slush fund of sorts. That cash was used by Brown to cork up large fiscal leeks and to pay for such expenses as his junkets, his infamous wining and dining and, on one occasion, a birthday cake for himself.

Part of the so-called positions reductions come from the elimination of unfilled positions. This certainly does not represent a reduction in staff and benefits liabilities.

Filed under Coral Gables, Government

Double Dip Recession Bad News for Coral Gables Government

September 4, 2009 Leave a comment

A leading economist indicates possible U shaped rebound from recession. If this were the case property values and business in Coral Gables will suffer a period of stagnation in revenues, asset values and tax revenues for the City of Coral Gables.

Nouriel Roubini, a leading economist who predicted the scale of global financial troubles, said a U-shaped recovery is possible, with leading economies undeperforming perhaps for 3 years.

Filed under Coral Gables, Miami-Dade County

Miami-Dade Commissioners Are Rational

September 4, 2009 Leave a comment

The Miami Herald reports that the Commissioners of Miami-Dade County voted to hold the property taxes flat.

The 8-5 vote throws into doubt whether many programs — ranging from meals for the elderly to domestic violence counseling to grants for small businesses — can be funded under the tax rate adopted by the board.

The commission’s vote pushed the county’s budget gap to $444 million, increasing the threat of layoffs and pay cuts for county employees. Commissioners have two weeks to decide precisely how to carve nearly a half billion dollars out of a $7.5 billion budget.

The commission vote, which concluded at 4:30 a.m., calls for more drastic cuts than sought by county Mayor Carlos Alvarez. In July, Alvarez proposed a small tax increase and $427 million in cuts, including laying off 1,700 county employees and 5 percent salary reductions.

Voting for the flat tax rate: Javier Souto, Joe Martinez, Rebeca Sosa, Carlos Gimenez, Bruno Barreiro, Natacha Seijas, Jose “Pepe” Diaz and Sally Heyman.

Voting against: Chairman Dennis Moss, Barbara Jordan, Audrey Edmonson, Dorrin Rolle and Katy Sorenson.

This is an important lesson for the Commissioners of Coral Gables!

Filed under Miami-Dade County

My Letter to Coral Gables

September 4, 2009 Leave a comment

September 2, 2009

Mayor Donald D. Slesnick
Vice Mayor William H. Kerdyk, Jr.
Commissioner Maria Anderson
Commissioner Rafael Cabrera, Jr.
Commissioner Wayne E. Withers
City Manager Patrick G. Salerno

Dear Mayor, Commissioners and City Manager:

I am writing to respectively express my deep concerns about an increase in property taxes in Coral Gables. To be sure I am equally concerned about what is happening with taxes and spending in the Miami-Dade County Government.

I urge you make the hard and, indeed, unpleasant decisions to save our families from rising taxes this year and in the coming years.

I observe, like many do in the community, that the City Government is overstaffed and the staff overpaid. I urge you to identify and announce to the community the essential and key services and reduce salaries and benefits, including pensions. I urge you to freeze and reduce capital expenditures, except for those few really essential projects. Cut back unnecessary staff in building and zoning and other units that are under worked, and eliminate the excess and overpaid middle and upper management throughout the city, including in the police and fire units.

It is time for the City to rethink its failed function as a property owner of a hotel, golf courses and a country club.

The challenge in yours.

I look forward to following your decisions in the coming days.

Sincerely,

Stephen E. McGaughey

Filed under Community, Coral Gables, Government

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