Bad News for Unemployment in Florida

February 25, 2011 Leave a comment

If you think that unemployment is going to improve soon in Florida, you are wrong.

If you think that the South Florida economy is going to grow enough, you are wrong.

If you think that the Miami-Dade economy will improve greatly, you are wrong.

If you think that local governments will be able to return to happy go lucky spending and taxing, you are wrong.

Adding to this perspective is Governor Scott’s push to gut government regulation in Florida and undermine social spending for medicaid, education, the environment, child protection and growth management, poses huge demands on local county and municipal governments in South Florida.

The future is not bright for this region, especially if the world economy gets an oil shock, slowing or depressing regional trade.

…economic growth must be stronger to make a noticeable dent in unemployment, which was 9 percent last month. The economy would need to grow 5 percent for a whole year to significantly bring down the unemployment rate. Economic growth of just 3 percent a year would hold the unemployment steady and keep up with population growth.

Looking ahead the economy is expected to grow by 3.2 percent this year, according to an AP Economy Survey.

via State spending cuts slow US economic growth in Q4.

Filed under Coral Gables, Economy, Florida, National

Employee Unions and Governments are Fully to Blame

February 3, 2011 Leave a comment

The state and local governments are fully to blame for having accepted the constitution and operation of pension plans, salaries and other benefits that are totally dependent on unrealistic economic circumstances.

Did they expect the economy of Florida would keep increasing forever and that people will keep moving to Florida irrespective of the environmental, social and economic conditions here?  Did they think that governments can function without realistic reserves and revenues? Did they think that taxpayers will keep subsidizing irrational pensions, salaries and other benefits?  Do the firefighters and police think that they are so indispensable that societies will pay them outrageous salaries and pensions?  Did the unions think that they could keep their friends in power to protect their salaries and pensions?

Time has run out on these games.

Time has come for the city of Coral Gables to correct a terrible injustice to its taxpayers.

“I want to have a pension plan that people can rely on,” Scott said. “That’s my whole focus. It’s only fair that if you’re going to have a pension plan you’re going to do just like the private sector does.”

The previous day, the governor unveiled a proposal to save $2.8 billion over two years through a number of measures aimed at the state’s retirement plans. Among them: the requirement that employees who participate in the Florida Retirement System contribute 5 percent of their salaries toward their benefits.

via Florida pension overhaul: Unions will fight, but expect Gov. Rick Scott to get his way on pensions – South Florida Sun-Sentinel.com.

Gov. Rick Scott’s plan to chop into the state’s budget by requiring state workers to pay into their pension plan is a good idea, according to the majority of Sunshine State voters interviewed in a recently released Quinnipiac University poll.

The governor has said he would require workers to pay 5 percent of their salaries into the pension plan. Currently, the state is the only contributor to the pension, and Scott said that requiring the employee contributions would save the state $2.8 billion over the next two years.

But those on the giving end think it stinks.

via Scott’s pension plan popular with public, not with employees.

Gov. Rick Scott’s plan to chop into the state’s budget by requiring state workers to pay into their pension plan is a good idea, according to the majority of Sunshine State voters interviewed in a recently released Quinnipiac University poll.

The governor has said he would require workers to pay 5 percent of their salaries into the pension plan. Currently, the state is the only contributor to the pension, and Scott said that requiring the employee contributions would save the state $2.8 billion over the next two years.

But those on the giving end think it stinks.

via Scott’s pension plan popular with public, not with employees.

Filed under Coral Gables, Florida, Pensions, Taxes and Fees

Banks in Florida are mostly Weak

February 3, 2011 Leave a comment

Many local Banks in Florida have questionable capital ratios.  This is product of outrageous housing loans and practices.

When it comes to strength and solvency, Florida is among the worst states for banking, according to a new report released by Weiss Ratings.

Nearly 80 percent of the 532 banks and thrifts in Florida are considered weak and have received a D-plus or lower Weiss Financial Strength rating.

via Weiss: Florida among worst for banking | South Florida Business Journal.

Filed under Business and Commerce, Florida, Housing

Great Analysis of Florida Development Culture–What Went Wrong and Who Pays The Price

January 31, 2011 Leave a comment

…the land use policies and politics of the late, great boom originated in South Florida, where an earlier generation of entrepreneurs had figured out the components of scalable housing developments that characterize the built landscape: condominiums on the ocean front and platted subdivisions in the ring suburbs. Although the conclusions of the Financial Crisis Inquiry Commission, issued last week, are unsurprising– namely that the crisis was avoidable– the mainstream media continues to avoid the closer analysis of what I describe as the Growth Machine: the network of local real estate speculators, lobbyists, mortgage and title companies, engineers, and politicians who facilitated first the massive overdevelopment of South Florida and then its inevitable collapse.

via EYE ON MIAMI.

Filed under Coral Gables, Florida, Housing

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