City of Coral Gables is said to Double Bill FEMA

September 13, 2010 1 Comment

One might hope that this Coral Gables Gazette story is not quite as bad as it looks initially. However, it does not engender enormous confidence in the finance director and auditing functions in Coral Gables, to say the least.  No great confidence that the City is able to keep track of others’ money, let alone the taxpayers.

Florida has ordered Coral Gables to reimburse over $1.2 million  of federal funds the city had apparently doubled billed and was paid twice for clean up expenses of three 2005 Hurricanes: Katrina, Rita and Wilma.

via City ordered to repay 2005 storms cleanup monies.

Filed under Coral Gables, Finance, Government

Economic Risks to the Economy and Budget of Coral Gables

September 12, 2010 Leave a comment

The IMF identifies the weaknesses in the real estate market and small banks as a risk for the US economy.  This the IMF report prepared prior to the forthcoming meeting of the G-20 countries.  Coral Gables is being concretely affected by these risks.

Another risk to the outlook stems from the possibility of renewed weakness in U.S.

property markets. The foreclosure backlog in U.S. property markets is large and growing, in

part due to the recent expiration of the home buyer’s tax credit. When realized, this could

further depress real estate prices. Small and medium-sized U.S. banks, which have significant

real estate exposure, could experience disproportionate losses and hinder bank supply of credit;

labor market conditions may further deteriorate as losses in housing equity restrain mobility;

and the adverse macro-financial linkages could precipitate a loss of market confidence in the

recovery.

Filed under Coral Gables

Bush Tax Cuts for the Wealthy: Options

September 12, 2010 Leave a comment

I assume that some (or many) people in Coral Gables would favor continuing the Bush tax cuts for all income groups, given income levels here.  Here is a different approach explained by Brad deLong (who we would call) a liberal economist.

It is necessary to appreciate that a continuation of the tax cut will increase the deficit because the tax cuts were programmed to expire at the end of this year.  The impact of approving new tax cuts would be a deficit increase of $700 billion.  The solution–use the monies from the tax increase for the rich for job promotion (stimulus) programs.

You would get a smart policy for addressing the current short-term jobs deficit and also make a down payment on the long-term budget deficit if you did the following:  Extend the middle-class tax cuts for a few years, let the top-rate cuts expire on schedule at the end of December, and use the revenue gains in the first year or so to pay for effective job-creating stimulus.  The middle-class tax cuts and the stimulus measures both would end once the economic recovery becomes more sure-footed.  The deficit reduction from ending the tax cuts would be permanent.

via Fiscal Policy: Chad Stone Talks Sense – Grasping Reality with Both Hands.

Filed under Economy, National

Try This for Drastic Government Reform

September 11, 2010 Leave a comment

This epitomizes the extremes reforms that cities might have to go to fix a long festering problem–basically, out source the government!

One Orange County city has already taken bold steps to correct its $10 million deficit. It may be a model for other cities and states across the country. Internally, it has decided it will not replace any city worker that dies, retires, moves or quits. The city will simply out source the employment to an outside service company and eliminate healthcare requirements and unsustainable pensions. Building inspectors will be out sourced as will city plan checkers, librarians and meter maids. Only essential services like top executives and cops will remain on the city payroll. The city staff will eventually decrease from 220 to approximately 35 personnel. This is the essence of deconstruction.

via A Tsunami Approaches: The Beginning of the Great Deconstruction | Newgeography.com.

Filed under Finance, Pensions

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