Coral Gables: Balancing Well-Being of Taxpayers and the Budget

August 30, 2010 1 Comment

The Teamsters Union is now leading the general employees into a dark corner by asserting that Coral Gables is wealthy enough to keep paying high salaries, pensions and other benefits.  This is insulting to residents who have paid taxes through thick and (now) thin and have generally accommodated decent and fair salaries for most (and some not so great) employees in many years.

Many residents now believe that the Slesnick Commission has tolerated, if not outright defended, the well-being of employees above taxpayers.  Unions, of course, have cooperated in this process by defending the commission.

Now both the commission and the unions should work together and share the pain to get the budget back into balance.

Taxpayers cannot do any more than they have.

Filed under Budget, Coral Gables, Employees and Unions, Taxes and Fees

US Leaders are Failing Us: Coral Gables will Pay Dearly

August 30, 2010 Leave a comment

Coral Gables will be affected directly and indirectly by the failure of economic policy leadership in the Congress and the Administration.  A small stimulus package is what is needed now for the US and the world economy.

The US recovery is stalling. As a matter of economics the balance of risks strongly favours further fiscal and monetary stimulus. Politics appears to rule out the first, and a divided Federal Reserve is hesitating over the second. America’s leaders are letting the country down.

…

Unlike most other advanced economies, the US could undertake further fiscal stimulus at acceptably low risk. Global appetite for its debt is undiminished. The risk, such as it is, could be all but eliminated if Congress could commit itself to stimulus now, restraint later – an easy thing, you might suppose, but evidently beyond its grasp. The administration could and should be pushing for just such a package, but it is not.

via FT.com / Columnists / Clive Crook – It falls to the Fed to fuel recovery.

Filed under Coral Gables, Economy, Florida

US Disaster Financing, a Potential Disaster for Coral Gables

August 30, 2010 Leave a comment

Let us hope that South Florida does not get hit by a strong hurricane, because neither the State of Florida nor the federal government have the financial resources to respond and reconstruct the city.  The city of Coral Gables city manager states that he can draw on (raid?) their many reserve funds assigned for other purposes, but like the pension fund liabilities, this leaves us with the question of how these reserves would be reconstituted under present economic conditions without more property taxes or fees.

There may be a modest county, state and federal response, but any significant reconstruction cannot be financed by the state or the federal govenment, or the depleted state insurance funds.  Take a look at New Orleans and you will see a model of weak federal and state government response and reconstruction.

Since the  federal government has decided to be self-finance  disaster reconstruction, alongside the federal budget deficits,  money is not going here to help us after a disaster.

Filed under Coral Gables

Will We Have To Sell City Hall?

August 29, 2010 1 Comment

From a quite prominent legal scholar.

Bankruptcy is not limited to individuals and business firms; under U.S. law, even a city can be declared bankrupt; and this happens occasionally. In one Illinois town, the bankruptcy judge ordered the sale of city hall to satisfy creditors’ claims. U.S. states cannot be subjected to bankruptcy proceedings, and neither can the federal government, or the governments of other nations. But that doesn’t mean that a state or nation can’t be insolvent. Insolvency is the condition; bankruptcy is a method of treating the condition.

via Is the Federal Government Broke? Posner – The Becker-Posner Blog.

Filed under Coral Gables, Finance

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