Coral Gables Watch

Krugman on Ryan’s Fantasy Budget. What About Coral Gables?

April 6, 2011 Leave a comment

I wonder sometimes if this is not the model for the budget for Coral Gables. But no, the city keeps increasing taxes in the face of falling revenues or rising revenues.

It is timidity of tax cutting in Coral Gables that keeps taxes increasing and terrible past commitments of the city in pensions and salaries, as well as having way too many employees.

Actually, what is not good for the country (keep lowering taxes and spending) is just fine for a small bloated municipality. At the federal level we know where the money is going (health, the military, social security, debt payments, and other small government programs).

Where does the money really go in Coral Gables–it goes for salaries and benefits–for which there have been no good studies of their efficient use.

Ryan is proposing huge (and largely unspecified) spending cuts; but he’s also proposing very large tax cuts, mainly, of course, for those with high incomes. And as you can see, a large part — roughly half — of the spending cuts are going, not to deficit reduction, but to finance those tax cuts.

Actually, it’s even worse, since the revenue figure in the Ryan plan is simply assumed, and is clearly too high given what he’s actually proposing on taxes; so either the fall in revenue will be even larger than shown here, or there will be unspecified tax hikes on the middle class.

via Where the Spending Cuts Go – NYTimes.com.

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

Is the Coral Gables PAC Dead? Needed–A Community Organization for Good Government

April 6, 2011 1 Comment

The Coral Gables PAC served an important function some ten years ago by helping to elect Mayor Slesnick and some current members (at that time thought to be “reformers”) of the city commission.

But the PAC has been so quiet during this campaign, has not come out for reforms or changes of any sort, has not defended a single position for important taxpayers issues, and has not organized any significant events to benefit voters, that I must conclude that it is dead, or maybe worse, content with the city of Coral Gables as it is today.

We need a strong community-based organization to promote an open, accountable, participatory and more transparent government.

Will anyone take up that challenge?

Filed under Community, Coral Gables, Election, Government

Congressman Ryan’s Plan to Fix Medicare and the Budget is Dangerous for Your Health

April 5, 2011 Leave a comment

And this from hardly what one might call radical news media.

PAUL RYAN’S plan to replace Medicare with a system of vouchers for seniors to buy health care on the private market has only been vaguely described, as of this writing. But there is one thing about it that’s fairly clear, regardless of what’s in the details Mr Ryan will announce today: Mr Ryan’s plan ends the guarantee that all American seniors will have health insurance. The Medicare system we’ve had in place for the past 45 years promises that once you reach 65, you will be covered by a government-financed health-insurance plan. Mr Ryan’s plan promises that once you reach 65, you will receive a voucher for an amount that he thinks ought to be enough for individuals to purchase a private health-insurance plan. (Mr Ryan insists that his plan doesn’t entail a “voucher”, but there is no meaningful distinction between getting a voucher with which to pay for insurance, and having the government send a payment to the insurer you choose.) If that voucher isn’t worth enough for some particular senior to buy insurance, and that particular senior isn’t wealthy enough to top off the coverage, or is a bit forgetful and neglects to purchase insurance, there’s no guarantee that that person will be insured. It’s up to you; you carry the risk.

via Medicare reform: You put the load right on me | The Economist.

Filed under Economy, Finance, National

A New Agenda for Coral Gables

April 5, 2011 1 Comment

Here is my agenda for the city of Coral Gables. This is based on the principle that citizens, taxpayers and residents should be consulted regularly about the financial future of the city. The city manager and commission should regularly should report to the our citizens and get feedback (however, uncomfortable that might be). The Agenda should involve transparency, not a culture of secrecy, that now prevails in the city. Yes, while this may sound a little idealistic, it is something that a different mayor and commission might seriously consider.

Prepare and discuss with citizens a NEW AGENDA for the City of Coral Gables to face the major pending problems, such as unfunded benefits, taxation, staffing and organization;
The City Manager should routinely report to taxpayers on progress on the budget and organizational changes;
The city needs a new Code of Ethics for staff, management and leaders;
Change the election dates for Coral Gables to coincide with national and state elections.
Prepare and publicly discussion a long-range financial plan for the City of Coral Gables
Target a freeze and/or reduce actual amount of taxes paid by citizens (not millage rates) during the next three years;
Accelerate a plan of reducing pensions and health benefits, especially for firefighters and police;
Prepare a plan and publicly discuss how to reduce unfunded pension liabilities during the next five to ten years;
Have a community town hall meeting at least twice a year to discuss the budget and other current issues;
Develop a realistic and flexible agreement with the Biltmore that protects the taxpayers not just now, but in the coming years;
Undertake a review of financial mechanisms and the defective EDEN system to establish a modern, functional accounting of spending and revenues;