Failed logic on Issue 5 from Toledo politicians

I just received a press release from Mayor Mike Bell:

Bell To Urge Support for Issue 5
Ballot Initiative Will Help Reduce Garbage Fee

Mayor Michael P. Bell will hold a press conference this afternoon, Tuesday, April 27 at 3:30 p.m. outside of Council Chambers encouraging voters to support Issue 5 on the May ballot. He will also announce the 2010 capital program which includes 87 lane miles of street resurfacing.

What: Mayor Bell Urges Support for Issue 5

When: Tuesday, April 27, 2010
3:30 p.m.

Where: One Government Center
Outside Council Chambers

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This is the second time a Toledo politician has said that voters should support a transfer of capital funds (CIP) into the daily operating (general) fund in order to reduce the garbage tax.

What the politicians fail to point out is that they just raised the garbage tax!

My trash tax went from $1 per month to $15 per month. That's a 1400% increase!

So they've raised our taxes and then tell us that if we allow them to take money away from our long-term needs (like roads and infrastructure), they'll reduce that tax. Now, they'll only reduce it to $8.50 per month for people like me who recycle. That's still a 750% increase, but I'm supposed to be so grateful that I'll make a decision to sacrifice my long-term needs for a short-term reduction.

Of course, there's no promise whatsoever that after they deplete the CIP account they won't turn again to the garbage tax to provide income to cover their daily operating costs.

In fact, much of the money they'll move into the general fund if Issue 5 passes will go directly to the unions for the 'concessions' they made. Under the terms of the concessions, if Issue 5 passes, the unions will get reimbursed for the items they gave up.

I cannot be more clear about our situation: it is unsustainable! We have costs that far outweigh the income and these 'temporary' solutions do not solve the problem - merely postpone it.

It is short-sighted and we need to tell them all NO! on Issue 5. Our elected officials need to make the same difficult decisions we're all making in our daily lives and start cutting out non-mandatory things. Then they need to go through the Toledo Municipal Code and start repealing ordinances that present a drain on the city finances. If they instituted a board or commission by ordinance and then funded it, they can repeal the ordinance and de-fund it.

I cannot afford $180 a year which is what we're currently paying. I also cannot afford $102 a year (if Issue 5 passes) AND the yearly costs of re-aligning two vehicles because our roads are so bad, not to mention paying so that employees of the city can get their portion of their pension contribution covered by me. That money should be going into my own personal 401(k) which doesn't have an 'employer' portion since I'm self-employed.

I suspect many of you can't afford this either.

Government has got to get its costs in line - and they won't do that if we keep giving them money to continue their current practices.

Friday Round-Up 4-23-10

There are just too many issues I'd like to blog about and not enough time in the day, so here's a round-up:

* George Sarantou, a sitting Toledo city councilman and candidate for Lucas County commissioner, is urging people to approve Issue 5 on the May ballot which would divert monies from our Capital Improvement Fund to the General Fund. Oh - and he's a registered Republican.

Sarantou has been chairman of council Finance Committee for quite a while now, during which time the city has had increasing yearly deficits. He says that allowing the money to be diverted from our long-term needs like roads and major improvements, will allow the city to reduce the new trash tax of $15 that he supported. Yes - he voted to increase our taxes.

However, approval of Issue 5 will only reduce the new tax to $8.50 per month for people who recycle. However, that's still an increase over the $1 per month we're currently paying. So he's supporting a tax increase. And, he supporting diverting money into the general fund because they (the city council) is still spending more money than they take in! It's just a shell game, moving money around because they will not do what is necessary to bring spending in line.

* Exigent Circumstances. It's a term Toledoans have learned over the last several months. Having the city declare 'exigent circumstances' allows it to impose cuts in wages/benefits/pension contributions outside of the collective bargaining process. City Council voted in favor of exigent circumstances and set some criteria for those cuts.

Since then, several of the city unions have agreed to voluntary concessions, though some of those concessions are only for the remainder of the year and some of them will be restored if Issue 5, discussed above, is passed by voters.

It appears that 'exigent circumstances' was a very clever bargaining tool to get the unions back to the table and agree to cuts. However, now that these unions have done so (only the police unions - patrolmen and command officers - have voted down the proposals), the exigent circumstances have been removed and the new agreements approved by council.

The problem is that the financial deficits of the city have not be fully addressed. We have unsustainable obligations and not enough money and many of those obligations will be back up to the high levels as of January 1, 2011. This is part of the reason Sarantou and other members of council want to take money out of the CIP budget...

If exigent circumstances was used only as a negotiating tool, it cannot be used again. The unions have now seen that card played and will not make the same mistake in 2011. If, however, Mayor Mike Bell uses the rest of the year to truly bring the contracts into line with available funding, it will have been a card well-played.

We'll see what happens between now and December 31.

* There's something wrong with the people supporting Ohio's state Issue 1. The proponent radio ads are promoting this as 'people' and not 'government.' However, this is a government program, so I guess perhaps I'm just too logical to 'get it.'

Issue 1 would allow the state to issue bonds - read: borrow money - to offer to businesses for certain types of 'economic development.' The borrowed money has to be repaid, including interest. This means that the state's general fund dollars - our tax dollars - must be used at some point in time to make those payments. While this may not be a 'new' tax, it is still a program that relies upon limited and declining tax dollars to fund it.

It also means that government - whether by an appointed board or by elected officials - will determine who gets the money from the account. Government will be picking winners and losers in terms of the funding. This is not the role of government.

Instead of taxing Ohioans to pay for borrowing and interest in order to give money to selected organizations or companies, why not just lower the overall tax rate so everyone benefits? That would certainly do more to promote economic growth and jobs than anything else. And it wouldn't put government in the position of deciding who gets to succeed thanks to help from the government - and who doesn't.

Even in you believe Issue 1 is a good idea that should be supported, you must agree that commercials saying it's people and not government doing this are wrong and intentionally contradictory to the truth.

Toledo balances its budget

Yes, the City of Toledo has a balanced budget - but at what cost?

I'm not talking about the additional tax people who live in the city but work elsewhere now have to pay...nor the $15 trash tax every home has to pay.

I'm talking about the subsequent costs everyone will incur as a result of the government taking more of our money than they did in the past.

While some will say that $15 a month in a trash tax isn't that much, to many it's a lot! The cries of "it's only...." ring hollow when you realize that you can't go to your boss and say, "Hey, the city just raised my taxes so I need another $180 a year in pay." You'll likely get some comment about being grateful you even have a job! Especially in Toledo!

So what will happen? Well, I can tell you that in our house, we'll have to cut out something we're currently purchasing in order to cover this new tax. So what will it be?

Well, we stopped going to movies quite some time ago because of the cost. There are only a couple of movies in the past several years that we've decided need to be seen on a big screen (Lord of the Rings, 2012 and Harry Potter) rather than wait for them to come out on video. So we've rented videos for about $3 each. But no more. We won't rent - and pay tax! - on five videos a month in order to cover the trash tax. If a lot of people make this decision, will that mean financial difficulties for the store and it's employees?

Or, perhaps we won't go to our favorite Chinese buffet over on Alexis. Carryout for lunch for two is about $15. People have already cut down on eating out. Will others make a similar decision and be the 'final straw' that closes this eatery?

Or maybe we won't pay the enterprising teens who come by and offer to shovel our driveway. Too bad, young entrepreneurs, but we've got a new tax to pay and the money doesn't grow on trees.

And if you're one of those live-in-Toledo-work-elsewhere people, the cuts in spending you'll have to make to cover your tax is much more severe. So sorry that Toledo politicians see you as a source of revenue and not as an equal member of the community.

These are the costs. These are the 'prices' the community pays when government decides it needs our money more than we do.

And shame on Toledo City Council for:

1) not recognizing or not caring about the negative impact of their decision, and

2) spending more than they had over the last several years and putting us into this situation in the first place.

Toledo has Issue 5 on the ballot which would allow these same politicians to divert money from the Capital Improvements (CIP) budget into the General Fund so they can continue to spend money like they have in the past.

We need to defeat Issue 5, just like we did the similar measure last November. These idiots have got to learn to live within their means just like the rest of us.

And we need to stop rewarding them for their fiscally irresponsible behavior by not 'promoting' them to other elective office (Joe McNamara and George Sarantou) and then not re-electing them to council anymore.

(I've exempted Tom Waniewski, who is running for state Senate, from that statement because he has consistently voted against the spending and the taxes.)

We cannot keep doing the same things, electing the same philosophies, and expect different results. Politicians don't bring change - only we can do that!