Being on the road in West Texas this week gave me a good opportunity to read the book I.O.U.S.A. The book is a non-partisan look at the four deficits that could very well ruin this country if they are not dealt with quickly. It is a short and easy primer on this very important issue. I am planning on reading thru it with my eldest daughter this Summer as well. I am now moving on the prequel to this book Empire of Debt.
Tomorrow morning we have our first official budget meeting. The $95,456,531 FY 2010 Budget represents an overall decrease of $864,779 from the FY 2009 Adopted Budget. This decrease in overall spending is reflecting the overall economic factors impacting not just the national economy but also impacting our local economy. The City is not immune from the national recession and its effect on the local economy has played a significant role in the development and recommendations of the Preliminary FY 2009-2010 Budget. In fact, the local effects of the economic recession have been significant in both the management of the current year budget and in the development of the preliminary budget for the upcoming FY 2010. Due to the economy, cost saving and containment measures went into effect mid-year in FY 2008-09. This preliminary budget forecasts flat or slightly declining revenues in several key areas for the upcoming fiscal year. Property and sales taxes, two key revenue accounts for the city, are such areas. Temple’s diverse economy has proved more stable than many cities, but is not immune to the current recession and the resulting challenges. There are several areas in the budget that give me pause. Those areas include compensation and capital projects. Stay tuned.
An interesting read on the Cap and Trade legislation that is heading for the Senate.
Our regular Friday packet must weigh five pounds. The bulk of which is related to the Budget. The City Manager has presented the Council with his recommendations and now it’s in the Council’s court.
Making progress…. I just talked to Chet Edward’s office and was informed he would be voting no. This was a pleasant surprise. Our Rep. John Carter is also opposed to this new tax.
I’m spending the afternoon working the phones asking for NO votes on the pending cap and trade legislation. So far I have only been able to get through to two on a long list.
The 1934 Chicago Tribune cartoon pictured below has recently been making the rounds in the blogosphere.
In it, members of Franklin Delano Roosevelt’s administration are seen shoveling money out of a wagon with a billboard on the side declaring, “Depleting the resources of the soundest government in the world.”
Last Wednesday, the Trib reprinted the cartoon with the caption “This is a 1934 Chicago Tribune political cartoon that many say rings true in today’s political and economic climate. What do you think?”
Sorry for the huge image but I could’nt get it to upload any smaller.
The property tax exemption for 100% Disabled Veterans contained in HB 3613 will be the gift that keeps on giving. While I appreciate what the legislature is working to do for the men and women that are disabled as a result of their service the our country I sure wish they would’ve figured out a way to pay for it. This is yet another example of the State and/or Feds writing checks that cities have to cash. This exemption will cost the City of Temple approximately $350,000 in lost revenue. It will also cost the county approximately $750,000 in lost revenue. Where do our representatives in Austin think this is going to come from? The money can only come from two places; increased taxes or reduced expenses and/or services. The City is in the middle of the 2010 budget process and, at the direction of the Council, is working diligently to avoid raising taxes. When you combine this goal with the fact that both our sales tax and property valuations are in a declining trend you will find that every dollar matters more than ever now. We have been fortunate in past years to be able to live off the growth in both sales and property taxes. This time around we do not have the same luxury. It sure would’ve been great for our representatives to have been as diligent in securing funding to pay for this worthy benefit as they were in resurrecting and passing it.
Back in December the City Manager met with our new State Rep. Ralph Sheffield to discuss transportation related issues. Click here to view the document that was presented to Rep. Sheffield that outlines the areas deemed critically important to Temple. As you will see there is a whole lot of money needed to make these projects happen. So where will it come from? Maybe TxDot can get their hands on some of the $335M for prevention of sexually transmitted diseases our infinitely wise Congress included in the stimulus package approved today by the House. As for me, I would prefer my tax dollars to be spent on concrete over condoms any day!
My boy and I watched Fox News this yesterday morning before we started to get ready for church. I was eating my oatmeal and he was hard at work whippin some bad guys on his DS. OK, he wasn’t really watching the news…. but he was listening. How do I know? Well, as the illustrious Senator Schumer from New York was discussing the stimulus package. He said something that the caught the Boy’s attention. Schumer said, “We needed to spend the stimulus money as fast as we can.” “No they don’t”, said the Boy. “No they don’t what?” I asked. “ They don’t need to spend the money as fast as they can,” he replied. “Why?” I inquired back. “Well if they spend the money as fast as they can then they are going to run out of money and then what will they do?” Hmmmm, I thought to myself. This is a pretty sharp kid if I say so myself. He was listening to the news, playing his game and talking to me. How’s that for multitasking? Can anybody tell me what will happen when they run out of money? That same question is bugging me as well and… he is still waiting on me to get back to him with an answer. I wonder if our people in DC are asking this question.