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7/9/2010
Appleton shows up late to austerity program
Yesterday’s FoxPol News included a Post-Crescent article detailing a City of Appleton pay freeze proposal for all nonunion employees, “prompted by a budget crunch Appleton is facing in 2011.” The article says that even with a zero % increase in salaries, the budget projections indicate a $2.5 million shortfall for 2011.
Imagine that.
[Mayor Tim] Hanna cautions the freeze only is a temporary fix, and his administration has to find permanent savings.
…. The city council knew a difficult budget cycle was looming. A one-time revenue of $2.5 million helped balance this year’s budget.
Why didn’t the City worry about tight budgeting conditions last year? Why didn’t they set aside the proverbial nest egg if they had all these extra bucks floating around?
I talked about exactly this last November in a quick review of Appleton’s 2010 budget, asking “what in heck are they doin’?”
Spending increased by 3% in a year when CPI is 0%. Compensation packages increased at 3% and more annually. The total tax levy increased 6.6% - again in a year when the CPI is less than 0% and when most taxpayers are seeing no increases in their take home pay – if they have the good fortune of having a job at all. The tax rate is actually down by a penny or two from 2009.
(The Finance and Budget gremlins are able to increase the total tax levy while actually decreasing the tax rate because all sorts of land value was added to the city when one of the Tax Incremental Districts was closed. And when it closed, not only did it add millions of dollars in taxable property to the tax rolls, the TID’s “leftover” reserves added $2.3M to city coffers! Wow. What a gift. And still, the tax levy increased.)
Not to be an ‘I-told-you-so,’ but 3% spending and compensation increases in a year when the CPI was 0.1%?
Throughout 2010, FoxPolitics News documented municipality after municipality that froze wages, cut wages and/or cut employees or employee work days. Brown Deer asked their employees to contribute to their own pensions. Imagine that. Manitowoc County Exec. Bob Ziegelbauer saw the fiscal train wreck coming and created a well thought out, detailed plan to pare down his budget – cut wages and benefits or cut workers.
That’s leadership.
So now the City of Appleton is looking down the barrel at a reported $2.5 million deficit. Are we thinking leadership here? Foresight? Courage?
Jo Egelhoff, FoxPolitics.net
COMMENTS
Late to the party? "Do they even have the party site programmed in to their GPS yet?" would be my question.
Think convention center - how much is the city already putting in to studying this "want not need", not to mention what will the cost be to the homeowners in Appleton once they (inevitably) decide to proceed?
In my house we don't plan to add on a deck, re-do the siding, or totally re-roof if the money isn't there and the prospects for making more money aren't there. Regardless of how much those things might add to the resale value of the home. If the money isn't there - don't spend it!
The city I live in is equally as guilty ... we have a debt on the order of what you would find in this nation's third largest city and the solution here is to hide our assets and get the best concessions we can from our creditors.
It's pretty obvious that as well intentioned as some of our 'leaders' may be - they're still in denial that real bills come due and the responsible thing to do is to figure out a solid plan to pay them.
Jeff R. (Fri Jul 09 09:10:18 2010)
Jo:
This will only get worse when the next Governor and Legislature takes office next year. There is no money left and no stimulus dollars or tobacco money to plug into the whole.
The areas that will be targeted will be the municipalities and counties and the shared revenue they get from the state. Schools will not be exempt either and there will need to be drastic cuts.
Yes, I agree, that planning should have been done for this long ago. Sheyboygan had the forsite to set priorities years ago and many other municipalities and counties have that plan in place. We could see the storm coming but some felt that either revenue increases in the state or some other money would "plug the hole".
What you will see now because that planning was not put in place, is hasty decisions as reality sinks in.
Decisions made in haste are usually not good ones. Let's hope that there is a serious effort by municipalities and counties who hav'nt planned to get on it soon.
Mike
Mike Thomas (Fri Jul 09 09:42:27 2010)
Thanks Jo,
It is only a start. I hope you send a copy to the mayor and school superintendent.
David (Fri Jul 09 09:55:37 2010)
Some people like to complain about how Ziggy holds two positions, (County Exec and assembly) but he DOES keep costs down! (Which is why he keeps getting re-elected.)
emily matthews (Fri Jul 09 13:30:39 2010)
Appleton is seeing the light...late;
freezing the nonunion workers was the wise and prudent thing to do.However,
the union employees will be a tough
nut to crack, and all 15 labor contracts expiring in the same yr?
Appleton Council should mandate via law or in all labor contracts to have all city employees nonunion or union to pay their own employee contribution of WRS versus we the taxpayers picking up 100% of the emp contribution to WRS...then it would really be an "employee contribution". How much is this costing the taxpayers of Appleton? Other cities,towns, counties will be seeing the light late on terms of funding very shortly too and then there is our $2.51 Billion mess in Madison for the next Gov and the new Legislature. Don't even think about raising our taxes or fees...we are taxed enough much now!
Dave (Fri Jul 09 19:52:25 2010)
Jack & Company, here is where our politically divergent elements require a cooperative approach since neither conservatives nor liberals have shown the will and integrity to ignore their re-election interests for solutions not palatable but necessary.
We have some early evidence that approaches have worked with Bob Zeigelbauer, and some approaches employed by Scott Walker as County Executive.
Solutions will not come easy, however, it can also mark an opportunity for the really bold leader, like John Kennedy, Like Ronald Reagan, to move our Nation to act in the greater good.
This blog should be the repository of ideas and discussion.Let's make an effort, and Jack, I see this initial attempt to act in an unselfish, non-idealogical manner in your recent posts, and some of those same from Jo and others.
Now is the time to come together in the ways we can.
Richard (Sat Jul 10 10:29:24 2010)
Why should public employees have better salaries, benefits, pensions, sick days, healthcare etc. etc. etc.???, than the public that pays them???
Dohnal (Mon Jul 12 09:52:34 2010)
Hear, hear.
Jo (Mon Jul 12 10:08:08 2010)
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