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

Public Employee Unions in Coral Gables: Not Indispensable

January 3, 2011 Leave a comment

Our Coral Gables leaders–city manager and commissioners–followed a single track during a decade:  they raised taxes and they increased spending over many years without regard for the eventual financial consequences.

Now they want to keep spending up on salaries and benefits and they want to keep up the taxes. It is time to make real spending and benefit cuts, and our city unions may face the same reaction that is taking place across the country against public unions, including police and firefighters who pretend to be indispensable (some are and some aren’t).

Across the nation, a rising irritation with public employee unions is palpable, as a wounded economy has blown gaping holes in state, city and town budgets, and revealed that some public pension funds dangle perilously close to bankruptcy.

…

Too many political leaders, they argue, acted too irresponsibly, failing to either raise taxes or cut spending.

via Public Employee Unions Face Rising Public Anger – NYTimes.com.

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

We’ve Heard this Before? Good Luck, Governor

January 2, 2011 Leave a comment

One may suppose that these efforts are mutually exclusive:  cut the budget, justify the money spent, cut taxes, help business expand, cut corporate and property taxes, pay for medicaid, pay pensions (already well funded by the state), all simultaneously.  Sound like an unattainable wish list if tax revenues fail to grow enough.

[Scott]…wants to place a freeze on new business regulations. He wants to phase out corporate income tax over the next seven years and  cut property taxes by nearly 20 percent. He also wants to expand Florida’s K-12 vouchers and charter schools.

Scott wants to solve Florida’s $3.5 billion  budget  deficit and will ask all  state agencies  to justify all the money they spend. He wants to save $1.4 billion  annually on Florida’s public employee pensions by requiring greater  worker contributions to the funds  and  by placing new workers into the 401(k) retirement plans. He wants  to cut Florida’s budget all the way back to its 2004 baseline.

via Florida government workers may have to contribute more to their pensions – Miami Labor Relations | Examiner.com.

Filed under Business and Commerce, Florida, Taxes and Fees

Coral Gables: Get Ready for More Property Taxes

December 29, 2010 Leave a comment

You have seen the recent news that the city of Coral Gables had its bond rating reduced (the CFO says “slightly”), because all revenue sources, other than property taxes, are falling. Property tax revenues are not referenced because the city manager and the mayor have consistently proposed higher property taxes and taxing have been raised every year.  Reports of continuing falling property values are certain to appear near in 2011.

With other tax revenues falling, the city manager unable to reduce spending enough, and the hostility of the labor unions od overpaid firefighters and police, you may be certain to see higher property tax rates the next time around.

What do the candidates have to say about this (except for Mayor Slesnick who we know is a strong advocate of higher taxes.)

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

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