Bankrupt Miami in Fiscal Emergency, Breaks Employee Contracts, Hikes Property Taxes
Submitted by bobbyw24 on Tue, 08/31/2010 - 07:36Miami is bankrupt. Unfortunately the city refuses to admit it.
In an enormously foolhardy attempt to make ends meet, in spite of the fact that Miami home prices have been hammered and 1-in-8 are unemployed, the County keeps pouring on the painful tax and fee increases.
As you recoil from your tax warning notice today, ponder this: those multiple tax hikes aren't the only charges set to rise. Besides Miami-Dade County's plan to raise every taxpayer's rates 12.2% for operations and an incredible 56% for capital spending on undisclosed projects, it also plans to raise retail water and wastewater rates 5%.
And though County Manager George Burgess proposed the 5% water and wastewater hikes, that's not because water and sewer are running in the red. They're already quite profitable. But by raising rates, the county can dip into water and sewer cash and add $25 million to its operating spending cache while claiming it's keeping our cost down. And for that $25 million slice the county would be right — unless you happen to drink water or flush a toilet.
"If you keep taking money it just goes to reason you're going to be charging more so all the residents are paying more," Commissioner Carlos Gimenez told us. "It's actually a hidden tax. You're just hiding it in water and sewer."
One Miami-Dade worker in eight can't get a job and commissioners don't seem to notice. Instead, as the economy strangles the public and values of homes fall, the county plans double-digit tax hikes on every dollar of remaining value. Before the commission finally clamps the screws on taxpayers or, as it should, relieves pressure by backing off its massive increases, it will hold budget hearings at 5 p.m. Sept. 13 and 23.
What can we do?
One suggestion: Let your commissioner know you'll be taking names of those who vote to raise tax rates even a penny in today's economy. Remind them that the purpose of government is not to remain bloated. Another suggestion: Wear a red "Cut Tax Rate" T-shirt to the hearings. Have your friends do the same. Remember, commissioners only count the hundreds of votes in the room, not the hundreds of thousands of suffering taxpayers back home fighting foreclosure.
Miami Breaks Employee Contracts
Inquiring minds are reading Broke City Breaking Employee Contracts
The city of Miami is so broke it's forcing employees to take pay cuts, even though they're under contract. Mayor Tomas Regalado said he's never seen a financial mess like this before, and his options are grim.
“It's either that or we layoff 1,000 employees or we raise taxes to the max, and we're not raising taxes to the max,” the mayor said.
Mish Comment: If you are looking for one of the most disingenuous comments in history there you have it. The only reason it is not a blatant lie is the ending phrase "to the max". Regalado is clearly incompetent and needs to be removed.
The city is operating under a state of "fiscal urgency," declared earlier this summer. The budget deficit for next fiscal year is about $110 million. The proposed cuts in salary, pension contributions and health insurance costs amounts to about $86 million in savings for the city.
That fiscal urgency declaration allows city commissioners to impose salary cuts on employees, despite their contracts.
Charlie Cox, who represents about 1,100 general service workers, said employees with valuable knowledge will retire or find work elsewhere. “We're going to have a ton of people leave the city and the institutional knowledge will be gone,” he said.
Mish Comment: Hello Charlie. Good luck in finding jobs with excessive benefits in this market. Hell, you don't need luck you need a miracle.
Good riddance, the sooner you leave the better Miami will be. Every position vacated will be a gain to the city.
Miami's police officers, firefighters and other union workers are all expected to choke down cuts. One police union official said the Fraternal Order of Police will sue the city if the cuts are imposed
Mish Comment: It is the right of the FOP to file a lawsuit. I hope they do. The correct response for the city would be to immediately declare bankruptcy so the overpaid union clowns can see just what benefits they get in bankruptcy court, ideally nothing.
Hell, the correct response is for Miami to declare bankruptcy now, whether the FOP is stupid and arrogant enough to sue or not. Miami is bankrupt, and the sooner the mayor and city council admit it the better.
http://globaleconomicanalysis.blogspot.com/2010/08/bankrupt-...
Here in Phoenix...
A couple of months ago I called my city council critter's office to share my disgust at how bloated the city of Phoenix still is in these economic times. The staffer tried to extinguish my anger by reassuring me that the city had negotiated a 3.2% pay decrease for the unions. When many in the private sector are losing their jobs and many more are receiving pay cuts of 10%, 15% and greater, we Phoenicians are supposed to take solace that our overpaid city employee's received a 3.2% pay reduction.... 3.2% is equivalent is nothing more than a freeze on a cost of living adjustment.
Meanwhile.... our illustrious version of Napolean- Mayor Phil Gordon, steams on with all sorts of building projects, not the least of which is a massive light rail expansion into the airport with it's appropriately named "Sky Train".
The bottom line: By and large, the parasitic class is doing just fine in this depression thanks to the public's ongoing tacit belief in the municipal governments supposed altruism, wisdom and all around good guy persona.
Make the revolution local.
No one is "entitled" to public money
There should be NO contracts for employment with regular employees of a government. Special contracts for limited times (less than a year) for specific services, yes. Ongoing contracts for regular employment - no.
I have no sympathy for government workers. Get a job in the real world, or move somewhere else where there are private jobs. The cry that people who are PRODUCTIVE have to fork over more of their hard earned money so someone else can retain their feeding trough access is despicable.
This problem must be dealt with one way or another
IMO public workers are the biggest problem and impediment to establishing a society based on the rule of law and property rights. I would guess the psychological profile of public employees is borderline psychopath and in some cases (maybe 10%) totally batshit moonbat crazy. These people believe they're entitled to all of the necessities of life (and some of the luxuries too). Given this profile and given the promises the polticos have made, if their entitlement is not delivered then violence will be the outcome. We've just witnessed millions and millions of "private sector" layoffs with scarcely an incident of violence. If the same dynamic were to be played out in the "public sector" there would be explosions, murders, and violence everywhere. Just saying.
It's ALL about private property rights
The sooner everyone get's that through their heads and actually starts doing real things towards that end the better. My eye opener came two ways, one was a graduation event at a place called the Berry Center, my taxing authority built and the other was Debra Medina. The Berry Center is HUGE and it was built through my taxing authority. At this particular event
there must have been 50 police and they were everywhere. They literally frisked everyone, looked in every bag and managed to steal personal items from my
brother in laws mother..STRIKE ONE...Then Debra Medina started private property initiatives and made it her primary platform in the Texas governors primary..Well I was primed. I researched and found terms like rendering agreements (who do these pertain to) and taxable and non taxable properties. Did more research and finally concluded much as I had the traffic issue that the Constitution and the state statutes never intended that I assume a privilege FROM ANYONE to travel anywhere (state law and referencing case law bears this out in detail)
And the rendering agreement was a way FOR A PRIVATE PROPERTY OWNER to participate in the election of bond issues and to vote on expenditures. Nothing more or less either way. IF YOU ALLOW BUREAUCRATS TO STEAL YOUR RIGHTS AND TAX YOU INTO OBLIVION THEY WILL YOU HAVE TO FIGHT FOR YOUR RIGHTS. You cut yourself lose when you challenge the people in authority to prove up their taxes with law under threat you'll sue their asses personally for fraud.
It's the same with travel. anyone who has spent any time in any courtroom in America knows these people earn their living BREAKING THE LAW. Remember anything that the Constitutions find repugnant is void..CASE CLOSED..There is tons of state code, statute and case law to back that up. Start fighting these people. Challenge them on every point.
Just one last kick in the nuts, then a final deathblow
sounds like the city needs...
It sounds like the city needs the old Sicilian mobs back.
Ron Paul's success is about speaking the truth not 'talking points'
There will be alot more stories like this in the coming months
and years.
Vote for Liberty...Buy Silver Eagles.
California's Prop 13 and Prop 218
The Howard Jarvis Taxpayers Association www.HJTA.org in California passed Prop 13 back in the late 70's, and that capped property tax rates to a small increase per year unless you were a new buyer. The reasoning was that this would put a stop to the elderly being pushed out of their homes by rising property taxes, when the value of properties near them was really irrelevant since they did not plan to sell.
This made planning predictable for everyone.
Of course the politicians simply started raising fees, instead. So we passed Prop 218 that made the distinction between fees and taxes, tying fees to actual costs and requiring 2/3 voter approval (I think I remember this correctly). At any rate, now 2/3 of voters or legislators must approve any increases.
When people start to lose their homes to taxes and fees, you can get even Democrats to take a stand against tax increases.
Incidentally, Prop 13 insulated government from worse consquences of the housing bubble. If taxes had been allowed to rise for everyone as the prices climbed, many more would have already lost their homes, and government would have grown much, much more. Prop 13 limits kept the bubble from being bigger.
You can reach voters in California, here: http://consequeries.com/California-voter-guide.php
The problem with caps...
They simply, and quietly, re-inforce the notion that taxing untransfered property is legitimate. In reality, there should be no tax on real estate until there is a transfer of ownership. In other words, it's ok to cheat me if you only cheat me a little bit; just don't get carried away with it.
Vote for Liberty...Buy Silver Eagles.
Taxation is Theft
But for California, it was a big step in the right direction.
Fees for services are the only humane way to go.
The inhumanity of eminent domain is even worse than predictable taxation, but you're right that taxes are a cheat.
You can reach voters in California, here: http://consequeries.com/California-voter-guide.php
bump
Thanks for posting.
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Yeah, I saw that and I don't even own the property anymore
And they are still sending me a property tax notice. Those guys are corrupt. They do nothing but spend money on useless stuff like the Marlins stadium, their undercover cops all seem to be driving brand new cars every year, and these cars are like $20k Plus cars, they give all the so call 'refugees' free money, food stamps, Section 8, wic(to teenage girls that don't speak english, are not married have one kid, and another on the way, etc, then they raise taxes to support that. Lucky for me, I don't have to pay those property taxes anymore, I'm out of this town in about 3 years, and I'm never looking back. Fun in the sun is not worth this 3rd world country known as Miami anymore.
Doesn't suprise me....
I live maybe a mile and a half from City Hall. I've had to deal with these guys on many different occasions. The air is full of "Smug" when walking into their offices. However, these elites will get a pass because corruption is the norm around here, and damn it the Marlins need a Stadium! Don't expect any Official Bankruptcy's until after the Stadium is complete. Then bond holders look out!
Yeah, I saw that and I don't even own the property anymore
And they are still sending me a property tax notice. Those guys are corrupt. They do nothing but spend money on useless stuff like the Marlins stadium, their undecover cops all seem to be driving brand new cars every year, and these cars are like $20k Plus cars, they give all the so call 'refugees' free money, food stamps, Section 8, wic(to teenage girls that don't speak english, are not married have one kid, and another on the way, etc, then they raise taxes to support that. Lucky for me, I don't have to pay those property taxes anymore, I'm out of this town in about 3 years, and I'm never looking back. Fun in the sun is not worth this 3rd world country known as Miami anymore.
Florida's liberal paradise.
Couldn't happen to a nicer bunch.
And Yet Miami
Has enough money to build a brand new Marlins stadium that the Marlins owners had the money to build themselves....
LOL
When I caught the "FOP" above, as in, "Mish Comment: It is the right of the FOP to file a lawsuit," I figured it might stand for F'ed-Over People :-)
New Hampshire and Ecuador.
Miami is one the few places
Miami is one the few places in the world where a city bus driver can make 6 figures per year.