Noah had a plan, does Sioux Falls?
As I mentioned in a post on January 8th, Newark, New Jersey’s very popular mayor asks his department heads to cut 10%-15% this year to prepare for the economic downturn. This wasn’t a suggestion, it was an order.
The city is making contingency plans to deal with slowing revenues. Before 2008, the city’s sales tax revenues grew at about 7 percent a year, excluding slower growth in the post 9-11 recession. But last year the revenue grew by just 1.7 percent.
Well, I hate to break you the news, Eugene, but we have already been splattered. The time to act is now. But the city doesn’t seem to be too worried about it, heck, they are even going on a hiring spree;
But things are not bad enough to consider layoffs. In fact, this year’s budget, which started Jan. 1, includes funding for about 25 new positions in city government.
“We’ve got those in the plan, and right now the plan is those 25 will come on board,” Rowenhorst said.
So your constingency plan is just smoke and mirrors? No real action?
But Mark Weber, a Sioux Falls resident with an advanced degree in economics, warns that city officials would be wise to plan for a scenario where tax revenues actually decrease from the previous year. Rising unemployment levels will impact sales tax collections and lead to greater delinquencies in property taxes.
“Nowhere in this contingency plan is a plan for a more drastic alternative,” Weber said. “I believe their department is in a world that doesn’t reflect the reality that’s coming.”
Mark, are you just realizing today that most of the council, mayor and department heads don’t have a grasp on reality. LMFAO! Than I cried.
My suggestion would be to do what Mayor Booker told his department heads, make cuts ahead of the storm and NO new hires. This will help pad budget shortfalls in the future and hopefully prevent layoffs of city employees. Of course those decisions would take common sense – something lacking in the chambers of Carnegie Hall.
Why do I think the city doesn’t want to move ahead now with cuts – because citizens would realize something I have known for a long time, the city spends too much money. If a 10-15% cut proves useful and the city gets by just fine, it proves that point. It’s hard to rehab an addict, and our city leaders have been addicted to spending for a very long time.
Get ready for the DT’s at City Hall.