Trinko thinks so ~ David Trinko's insights on news, life and the world around us

Archive for the 'Balanced Budget' Category

Column: Lights fade to black as local governments balance budgets

December 19th, 2011, 9:54 am by
Streetlights

Streetlights went dark in some places to save money. (Photo courtesy of Wikmedia Commons)

Apparently my dad was right. You can stop spending a lot of money if you just turn off the lights.

Story after story from The Associated Press shows cities going dark to get their budgets in the black:

•The Detroit suburb of Highland Park, Mich., tore out two-thirds of its street lights last month to help chip away at its $4 million overdue electric bill, which cost the city of 12,000 people $60,000 monthly payments.

•Rockford, Ill., saved $500,000 a year by turning off 15 percent of its streetlights.

•Closer to home, New Paris will end its contract in January with Dayton Power and Light, saving $17,000 a year on streetlights in the Preble County village.

•Much closer to home — literally home for me — in Ottawa, the village is considering a proposal to turn off half the streetlights, potentially saving $30,000 a year in the shadow of a failed income tax increase in November. The village already eliminated its annual Christmas lights display in Memorial Park, saving $7,500.

The economy may be getting better for many Americans, but municipalities often feel economic shifts last. Because income taxes and property taxes fund them, cities and counties don’t feel the pinch immediately when things go bad. They’re starting to feel it now, though.

The state budget’s approval just complicated matters. There’s a 25 percent cut in local government funding next year, followed by another reduction the following year. Times will be tight, and local governments will have to be resourceful.

Officials in American Township are feeling the chill of residents, who are concerned the elimination of the assistance maintenance supervisor might slow down snow removal this winter. Fort Shawnee continues to meander its way out of its $800,000 projected deficit (down to $140,000 now), but it won’t make more drastic changes before swearing in the new councilors and mayor in January.

Lima has to figure out how to deal with $2 million in funding cuts from the state. It’s looking at reducing personnel costs, much of it by eliminating 30 positions left open when people decided to leave.

Other cities across the country are finding dramatic ways to fill dramatic gaps in their budgets:

•Naperville, Ill., might sell advertising on all city property. One possibility includes stamping the Kentucky Fried Chicken logo on fresh asphalt when filling potholes, according to the Chicago Tribune.

•Clearwater, Fla., dismantled nine of the city’s 34 parks within the last five years. It expects to knock down another five by 2019, according to the St. Petersburg Times, as the cost of replacing equipment at parks can cost $50,000 to $75,000.

•Coney Island, N.Y., began rationing toilet paper at its public restrooms this summer, according to the New York Post, offering only a few squares per person of the city’s single-ply sanitary product.

These places are all feeling the pinch of thriftiness, something most Americans adapted to three years ago. Taxpayers feel frustrated when officials brag about pay freezes when those same taxpayers took pay cuts a few years ago. They can’t help but wonder if these places slimmed their workforces down enough, a practice called “right-sizing” in the private sector.

It’s not a fun process to look at your budget and try to live on it when your expenses go up and your income goes down. Just ask any taxpayer what that’s like. They call that “living within your means.”

They should also be careful with things such as public safety, one of the legitimate and agreed-upon uses of government. I’m a cynic, so I wonder if something as public as turning off streetlights might just be a ploy to push a future tax push, just as some schools threaten to cut sports if a levy fails.

Still, I applaud these places for looking closely at their budgets and thinking about what’s absolutely necessary and what’s not. It’s time more people talked about what should be essential government functions and what shouldn’t be.

Kasich: Nation’s least popular governor

October 3rd, 2011, 2:16 pm by
John Kasich

John Kasich, right, is the least popular governor, according to a recent poll. (Photo courtesy of governor.ohio.gov)

Based on what he says and does sometimes, it’s like Ohio Gov. John Kasich wants to be hated.

If that’s the case, a recent poll by Public Policy Polling shows he succeeded. With a 53 percent disapproval rating, he’s the least-liked governor in the land, edging out former frontrunner (backrunner?) Rick Scott of Florida. The Ohio Democratic Party latched on to the poll, issuing this statement to supporters:

“One category in which we never intended to be first was having the most unpopular Governor in America – but that is what we now have,” reads the e-mail signed by Chairman Chris Redfern.  “A brand new poll released shows that John Kasich is now the most unpopular Governor in America. Making him #1 and our state’s reputation dead last.”

Does this mean Kasich’s doing a bad job? Maybe. Maybe not.

The reality is Kasich stepped into a mess when he took over as Ohio’s governor, a mess created by former governor Bob Taft (a fellow Republican) and not made much better by former governor Ted Strickland (a Democrat). As is often the case, there’s plenty of blame to be spread around on who made the mess. Still, there’s no doubt it was Kasich’s job to clean it up.

Like him or not, Kasich is consistently marching toward his vision of a sustainable Ohio. His budget passed without much change. Senate Bill 5, which is on the November ballot as a referendum, made it through. And he privatized economic development, just like he said he would.

What’s really troubling is people worry about the popularity of politicians. If they’re really doing their jobs well, sometimes they’ll have to be unpopular. Being a guardian of the public’s money isn’t a popular job. The only poll that really should ever matter is the one where you vote on who gets or keeps the job.

Let’s be honest about taxing the wealthy

September 20th, 2011, 10:34 am by

Image courtesy of Zazzle.com.

I want to tag along with President Obama on his “tax the wealthy” idea for solving all our country’s problems. I really do.

When I heard about the President’s speech Monday, I was ready to jump to his side. (Read the AP story, Tax the rich, Obama says; class warfare, says GOP, here) 

I once subscribed to the conservative belief that you shouldn’t tax the rich more, as they’re the economy’s best chance of creating jobs. I’ve given up on that belief as I read story after story after story about companies doing just fine financially but still not hiring or growing out of some fears they’re basically creating themselves.

But then the facts got in the way of a nice story. (Read the AP’s FACT CHECK: Are rich taxed less than secretaries?” here.)

The AP’s fact check doesn’t even hit where the disputed numbers come from. People such as Warren Buffett are talking about lower overall tax rates because much of their money comes from capital gains taxes, for which you only pay around 15 percent in taxes. (Read the IRS’s explanation of capital gains taxes here.)

Most middle-class people don’t think much about capital gains taxes, as they’re not buying or selling enough of anything for it to be a real concern. But conceptually, the fact they even exist should infuriate Americans. It’s a double-jeopardy tax, taxing you again on money you already paid taxes on when you earned it in the first place.

For all the frustration people air about the so-called death tax, shouldn’t they be just as irritated about getting taxed over and over on money you’ve already earned? Even worse, this is sometimes a tax on things you’ve also paid a sales tax on, along with any other taxes that might be applicable. Then, heaven forbid, you find a way to make money off it, and the government takes its share off the top.

I’m all for the top-tiered salary-earners (of which I’m not even close to being, as I make less money than your average teacher) paying their fair share. As it turns out, they are on their income. If you’re going to fund your government on income taxes, then the mission has been accomplished. But increasing the capital gains tax, which shouldn’t exist in the first place, isn’t the best way to drive innovation in this country.

Your income went down

September 13th, 2011, 12:18 pm by

This isn’t really new to most of us living in the real world, but the amount of money you earned in 2010 officially went down from 2009.

The U.S. Census Bureau announced its findings, showing that the real median household income in the United States dipped to $49,445, down 2.3 percent from the 2009 median. It’s all found in the report “Income, Poverty and Health Insurance Coverage in the United States: 2010.” The median income in the Midwest is $48,445, down 2.5 percent.

Yup, that’s right, people had less money in their pockets. This is, of course, after the Great Recession ended in economists’ eyes back in June 2009.

The poverty rate went up, from 14.3 percent in 2009 to 15.1 percent in 2010, marking the third consecutive annual increase in the poverty rate. That means there are 46.2 million people living in poverty, the largest number in the 52 years they’ve published these numbers.

Oddly enough, the number of people without health insurance didn’t change significantly, with 16.3 percent of people living without insurance.

The numbers aren’t that hard to interpret. People have less money. More people don’t have enough money to live. It seems pretty simple that the government should give some of what it collects back, not ask for more in these tight times.

Census shows fewer government employees

September 12th, 2011, 4:46 pm by

Maybe government employees are listening to us after all when we ask them to tighten their belts.

A recent U.S. Census report, the Annual Survey of Public Employees and Payroll, shows the number of full-time equivalent employees in government dropped by 203,321 people ebtween March 2010 and March 2009. Before we get too worked up on this great step forward, I’d note there were 16.6 million full-time equivalents left, so this drop is really just a dip of 1.2 percent of the workforce. But it’s a start.

In Ohio, there were 525,373 full-time employees of the government in March, acculumating $2.2 billion a year in salaries.  (You can check out Ohio’s numbers here.)

The good news is the government’s biggest where it probably should be if you’re going to buy into the premise that government’s meant to serve the people. More than half of those employees, at 9 million, worked in education. Another 986,471 people worked in hospitals, followed by 946,196 in police protection and 731,692 in corrections.

The numbers of people working in state government and local government both decreased in the previous year too.

This shows that some folks really are understanding the angst of voters, who are asked to live on more limited budgets as costs rise faster than their incomes. I only hope that by next March that number of government employees dips even lower.