No Income Taxes in Florida is an Illusion for Many New Residents (including Coral Gables)

September 24, 2010 Leave a comment

I wonder how many new residents have done their homework.

For very high income levels and owners of large residences, the amount of taxes paid residing a state with income taxes (and property taxes, too)  are way less than the increase in their property taxes in Florida.  But for many new property owners in (say) middle and upper middle income levels, they well pay more in property taxes than they paid in both state income and property taxes in their former residence states.

According to the Empire Center research organization, over 1.5 million more people moved out of New York State in the past decade than moved in – a larger net loss than for any other state. Like Jeter, people moving out tend to earn higher incomes than people moving in. Again, like Jeter, most of the people who leave had lived in the New York City area – not in the economically depressed upstate regions. And finally, like Jeter, almost a third of outmigrants settle in Florida.

via Why Derek Jeter and LeBron James are running for Florida: High taxes turn the rich into refugees | heat.basketball-news-update.com.

Filed under Florida, Taxes and Fees

Mayor Alvarez Answers about Taxes

September 15, 2010 Leave a comment

I am reproducing the response I got from Miami-Dade County from my note questioning higher property taxes.  You will feel the emotion in the Mayor’s pronouncements about both the great sacrifices of county employees, the county’s apparent domination by its unions and the great work that county leaders have taken to fix the budget.

Dear  Mr. McGaughey:

Thank you for your e-mail.  Unfortunately, there is a lot of misinformation regarding the proposed Fiscal Year 2010-2011 budget and what has been accomplished following collective bargaining negotiations with the County’s 10 bargaining units.

Unprecedented union concessions have produced $224 million in taxpayer savings.  Employees saw a one-year freeze in merit pay, premium pay, flex pay, longevity bonuses and a 5 percent reduction to their pay which forever resets the base, and sets the stage for another round of collective bargaining which will begin soon.  The three-year contracts that were hammered out over many months do include a 3 percent cost of living adjustment in the last three months of a three year deal.

While an increase may appear unreasonable to some considering the economic climate, our process is a complex one.  Unionized employees make up about 90 percent of the County’s workforce.  Collective bargaining takes place between management and union leadership, but all agreements must then be approved or disapproved by our Board of County Commissioners (BCC).  In fact, one bargaining unit has still not reached an agreement with the administration, and the BCC has yet to impose terms.

Proposing measures that have no reasonable chance of moving forward is an exercise in futility.  I would rather bargain in good faith, realize real savings right now and open the door to continued negotiations which could produce even more wage and benefit concessions.

As for property taxes, Miami-Dade will collect almost $38 million less in property taxes than we did last fiscal year.  Direct services remain intact.  Not a single park, pool, library or fire station will close, and sworn police and firefighters will not be laid off.

However, layoffs, reassignments, and departmental consolidations are all part of the proposal.  About 1,200 positions are slated for elimination, 600 of which are filled.  That will bring the total workforce to a little more than 27,000 positions.  The last time the workforce was at this level of staffing was in the late 1990s.

Once a budget is approved, we will have closed more than $1 billion in budget gaps during the past four budget cycles.  Balancing a budget is never a simple task, but we have tried hard to provide you a framework that maintains the quality of life services our residents have come to expect.

Sincerely,

Carlos Alvarez

Mayor

Miami-Dade County

Filed under Miami-Dade County, Taxes and Fees

What I Learned during the Budget Hearing Tonight

September 14, 2010 Leave a comment

I  learned a few things from the Commission meeting today.

  • The Director of Finance sings the same song every year, and he has for many years.  “We have a great millage rate.”  “We really need the money.”  “We are a great city that needs the money.”  “Don’t worry, Miami-Dade is taking a much bigger share of the rate so our tax rate isn’t that bad, really.”
  • The City Manager has a plan to reorganize, restructure and right size the city’s government.  [I wonder what is the plan and whether we, the citizens, hear about it in more detail.]
  • The City Manager feels that the employees have sacrificed a lot and when the economy comes back the sacrifices can be rectified. [Many citizens think it is the taxpayers that have been sacrificing, rather than the employees.  Maybe the Manager is just playing up to his staff.]
  • One Commissioner reminded us that employees haven’t received salary adjustments for a couple of years.  [I am personally reminded that there is been literally no inflation for two years, so their salaries haven’t gone down in real terms for two years.]
  • Mr. Kerdyk said that there are 1,000 housing units in “pre-foreclosure” out of 16,000 so times are really, really, tough for the community.
  • The City Manager said that there are plenty of candidates for the jobs of police and firefighters.  [Economics tells you that we don’t have to pay the police and firefighters as much in these conditions–supply and demand.]
  • There are 7 police officers and 2 lieutenants positions that are unfilled and will mostly remain so as a financial buffer.
  • The reserves have taken a huge hit because of the FEMA double billing debacle.  We just have $3.3 million after repaying FEMA.
  • I have the feeling that the City Manager and the Commissioners are praying for a strong economic recovery as a way of digging out of the financial mess. [The City Manager said we have a financial mess (in so many words).  Don’t count on a strong economic recovery.
  • Nothing, nothing was said about the Biltmore.  [Maybe, I missed it.]

Filed under Budget, Coral Gables, Finance, Taxes and Fees

“Quality of Life” in Coral Gables and the Budget

September 13, 2010 Leave a comment

I am impressed by the number of Coral Gables politicians, commissioners and the mayor who use the expression “quality of life” as something to be protected or that is facing impending loss. Certainly, we have heard the mayor and other commissions use the expression, and now we have at least one candidate, Brad Rosenblatt who has done the same.

Brad Rosenblatt, president of the Coral Gables Business Improvement District and a commission candidate, said he hopes city leaders forge a fair compromise on the budget.

“We are living through extraordinarily difficult economic times and I want to be sure that the city does everything possible to cut expenses without reducing our quality of life,” he said.

via Coral Gables tightens its economic belt – Coral Gables – MiamiHerald.com.

I conclude that “quality of life” might be a metaphor for raising the tax millage rate and revenues in these hard times.

Filed under Budget, Finance, Taxes and Fees

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