Remember when local economist Mark Weber warned Sioux Falls about the economy and preparing for the worse? Well guess what, they were not listening, once again;
Sales tax collections in Sioux Falls through July are down 0.4 percent from last year, causing some city councilors to worry that a projected sales tax growth of 4 percent in 2010 is too optimistic.
Eugene Rowenhorst, the city finance director, told the City Council during a budget hearing Monday that sales tax revenues did not grow at all in the first seven months of the year. The council originally had budgeted for a 6.5 percent increase this year, but that later was modified to a projected 2 percent increase.
It’s not like you couldn’t see this coming for months and months. It was pretty obvious that SF was not immune to the recession, but it doesn’t stop Eugene from spinning it even more;
But the fact that the tax revenue is down this far into the year has some councilors worried about next year. During the budget meeting, council member Kermit Staggers questioned why the 2010 proposed budget projects a 4 percent increase in sales tax.
Rowenhorst’s answer was that the economy is expected to improve by next year, and the 4 percent increase is a middle ground between the 2 percent growth that eventually was projected for 2009 and the historic 6 percent to 7 percent increase in sales tax receipts.
“We’re coming out of the recession and getting back to a more normal growth phase,” Rowenhorst said.
Sorry, Eugene, I have trouble taking the word of a man who basically ignored economic trends by not preparing for the worst. I believe Munson did not care what happened with the economy, it is his last year in office, and he had a legacy to build. How do you justify cutting the budget when you can ‘pretend’ everything is going to be fine down the road. I have often been told by many people that Munson is a positive man, and I believe that, but IMO, lying to yourself and the public to get what you want is very negative, very negative indeed. I have been saying it for years that Munson has put his priorities above the public’s best interest, and while McKennan Park residents will be enjoying a new $170,000 shitter and the Rhino’s at the zoo have a new shed to sleep in the rest of us and the next mayor are going to have to figure out how to fix this shortfall and overspending by Munson.
The first thing the next mayor needs to do on day one is fire Eugene and anyone who is loyal to him in the finance office, and employ someone who is in touch with reality.