Unions and pensions killing the city
Mayor Manny Diaz presented his Fiscal Year (FY) 2010 Preliminary Budget before the City Commission during the First Budget Hearing last night. As news media filled the parking lot at City Hall and many city workers picketed the cuts.
The fire and police unions and pensions are bankrupting the city and layoffs are suggested for many city workers not part of unions, although almost 200 police officers are slated to be layed off. The NET offices are also threatened with closure to save money.
The budget addresses a decrease in revenues while working to maintain essential services for the residents without increasing the millage rate or utilizing the General Fund Balance.
“Sacrifices must be made. The question we must answer is who should make these sacrifices,” said Mayor Diaz. “Today we have a choice: we can continue to use the people’s money to feed the appetite of the bureaucratic beast, or we can remember that we are public servants, and put the interest of people first.”
That's easy for him to day, he'll be gone with his own pension in November.
Highlights of the Mayor’s proposed budget:
Proposed budget of $511.4 million, a decrease of $13.7 million, or 2.7%, from the FY 2009 adopted budget.
Proposed millage rate remains at 7.6740 mills.
Decrease of 572, or 16%, in total number of approved full time positions (including 177 police officers), for a savings of close to $40 million.
Across the board reductions of close to 16% in all of the departments, including the complete elimination of several departments, resulting in a savings of close to $45 million.
Tiered salary reductions across all departments ranging from 6% to 15%, resulting in close to $22 million in savings.
Additional reductions in expenses and increases in various fees result in close to $11 million in income and savings.
Pensions seem to be the main problem, the current $101 million city pension plan is most definitely going to increase. The police and fire unions refuse to offer pay cuts. As you know, the fire department has the highest salaries in the City.
Commissioner Marc Sarnoff was being sarcastic last night claiming that he should never have gone to college and law school to succeed in life, all he had to do was become a fireman.
Mayor Diaz’s Proposed Budget for Fiscal Year 2010 can be viewed here.
By law the mess must be solved by September 30. Commissioner Tomás Regalado said it best, "It's going to be a long September."
The fire and police unions and pensions are bankrupting the city and layoffs are suggested for many city workers not part of unions, although almost 200 police officers are slated to be layed off. The NET offices are also threatened with closure to save money.
The budget addresses a decrease in revenues while working to maintain essential services for the residents without increasing the millage rate or utilizing the General Fund Balance.
“Sacrifices must be made. The question we must answer is who should make these sacrifices,” said Mayor Diaz. “Today we have a choice: we can continue to use the people’s money to feed the appetite of the bureaucratic beast, or we can remember that we are public servants, and put the interest of people first.”
That's easy for him to day, he'll be gone with his own pension in November.
Highlights of the Mayor’s proposed budget:
Proposed budget of $511.4 million, a decrease of $13.7 million, or 2.7%, from the FY 2009 adopted budget.
Proposed millage rate remains at 7.6740 mills.
Decrease of 572, or 16%, in total number of approved full time positions (including 177 police officers), for a savings of close to $40 million.
Across the board reductions of close to 16% in all of the departments, including the complete elimination of several departments, resulting in a savings of close to $45 million.
Tiered salary reductions across all departments ranging from 6% to 15%, resulting in close to $22 million in savings.
Additional reductions in expenses and increases in various fees result in close to $11 million in income and savings.
Pensions seem to be the main problem, the current $101 million city pension plan is most definitely going to increase. The police and fire unions refuse to offer pay cuts. As you know, the fire department has the highest salaries in the City.
Commissioner Marc Sarnoff was being sarcastic last night claiming that he should never have gone to college and law school to succeed in life, all he had to do was become a fireman.
Mayor Diaz’s Proposed Budget for Fiscal Year 2010 can be viewed here.
By law the mess must be solved by September 30. Commissioner Tomás Regalado said it best, "It's going to be a long September."
posted by Tom Falco at 8:00 AM
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28 Comments:
An interesting budget meeting indeed. I was saddened to hear of all the departments slated to be eliminated. MCI (sustainable initiatives), double ouch. This department has worked hard to green our city. Xeroscape is being installed at city hall as we speak. The money for this was obtained through a grant. And will conserve water and set an example. The xeroscape project was shot down by one commentator. It's a shame when people make comments without having done some fact finding first. It was truly a sad night but Berkowitz and his team of expert financial volunteers did a wonderful job of summing up our next steps for us. There were even moments of brief levity. Angel's comments about buying a lotto ticket and the wave moment. I had to contain myself from jumping up and running out the door in search of a lotto ticket. TC.
Tell me about it! Film was slated to go as well. What are they thinking??? Who will issue film licenses? I don't understand how they came up with their list of who needs to go. It almost sounds like there's a disconnect with the functions that these departments provide to our residents. Someone needs to analysis the return on investment and the money these departments generate before offering them up for the chopping block. Oy vey!
"Unions and Pensions are bankrupting the City"
I'm sorry, but you have absolutely zero evidence for that statement. Example - the line items for insurance premiums and debt service together are roughly equal to the line item for pension contributions. Why doesn't your headline say "Insurance Companies and Bankers are bankrupting the city"?
What's killing the budget is the dramatic decrease in revenue from Property Taxes. So, why not "Recession is Bankrupting the City"?
Tyranny of the omnipotent, big and overspending branches of government is the reason we have been experiencing national and local crisis for over ten years. So I agree with Sarnoff, no one is better than the self to put out one's own flame.
It was very strange and disconnected to see and listen to what was being eliminated - which basically consisted of Everything.
If City Hall raised the AC temp 2 degrees they'd be able to save jobs.
They proposed reducing bulk waste pick up to once a month. Isn't that yard trimmings?
One irate man railed against the cut backs when they could run full page ads about Miami 21. He suggested eliminating code enforcement which got huge cheers. We only understood every fifth word but it was quite a performance.
I find it somewhat ironic that on September 11th, a day that will resonate in our nation's history forever, we are criticizing the fire department for their pensions. Let's remember that these people are putting their lives on the line every day for us and willing to sacrifice their life for ours.
In the private sector, we don't have the option of making our clients pay more when times are tough, and we don't have the luxury of operating the same as when times are fat.
Unfunded public pensions and entitlements are a ticking, fiscal time-bomb. Social Security and Medicare are Ponzi schemes on the verge of collapse. Our city and county have wasted untold millions on corrupt boondoggles such as the affordable housing scandal and shady land purchases by the school board. If we held our city, county, and national governments to the same standards of accoutability as the private sector, our elected leaders would all be headed to prison.
As if all that wasn't enough, we have a president and congress that is printing money so fast that we're being lectured by the Chinese, and we're trying to fully nationalize the healthcare sector, which amounts to at least %17 of our total economy.
Beam me up, Scotty. There's no intelligent life, down here.
You talk about no intelligent life down here? I ask, where was the intelligence for the last eight years - literally and figuratively? Locally and in Washington? The spending and greed had already started. Years ago they installed flat panel TVs in City Hall when most homeowners couldn't afford them. People are going to lose their jobs but Blanche Dog Park gets homeland security money to spruce itself up? China already had most of our jobs in 06. They were already shipping us poisoned dry wall. As far as DC, please stop blaming the clean up crew for the toxic spill that started years ago.
Spreading lies on a comment board for Coconut Grove related issues, doesn't make our Village a tourist attraction. And Washington has no desire to nationalize health care - they want to fill a gap of 4%. There is plenty of intelligent life here in the Grove.
Had the budget office audited the spending of money rather than just gut programs - with no consideration to fallout and ramifications this would be much more civil.
Hey, Marc stole my "should have become a firefighter" line! And he's absolutely right. In what other job could you make great money, work two or three days a week for 20 years with so much free time you can have a side business, and then retire young with a huge pension benefits for the rest of your life?
Meanwhile, how many of us under 45 or 50 in the private sector have ever had a job that gave us more than a 401(k) plan to put our own money in and maybe a little matching, for our retirement? I'd love to know the answer to that question. I'm a lawyer and have never had a job where there was more than a 401(k) plan.
Let's do a little Grape poll: Post anonymously if you want, and tell us what you do for a living and what kind of retirement plan you have at your job.
Anon 10:00 A.M. Agreed Anon, however, so do armed service personnel, police officers and every single American who gets in some mode of transportation to get to work. After all most accidents happen within one mile of home and hundreds of thousands die annually getting to and from work and yes, the local bars. So why should the fire department personnel be so special? Simply because they can muster the personnel, with fire bells ringing to high hell attracting attention to whatever politician can give them the most benefits for turning out.
Anon 11:38
I do not agree with the pensions....and they must come to the table because they are part of the problem. This is a multi-faceted issue that requires more of a thesis paper.
That being said I disagree putting armed forces and people who drive to work in the same catagory.
Yes, people die every day. They also die of starvation and preventable diseases.
But I would not put a guy (or woman) who drives to work every day as a guy (or woman) who signs up to go to war fully knowing there's a good chance he can die a horrible death far away from home.
For the person who chastised the comment on firemen salaries and police pensions because of 9/11, here is a fun fact:
3000 people died on 9/11
30000 people die each year from influenza and this country still cant provide enough vaccinations
So, while both are horrible, Id like to think that 240,000 deaths since 2001 are slightly paramount to 3000. 9/11 was a horrific day in our country's history. So was Pearl Harbor, the Civil War, and the list goes on. We remember, we mourn, but we must move on.
anon 11:38 Respectfully - why not?
Think for one second. You go to war and possibly die a horrible death. You join the police dept and die a horrible death. You join the fire department and die a horrible death. You go to work in you transport --and pay your taxes to your country/community and the probability of dying a horrible death as a common citizen is percentage wise, much greater than all the other horrible deaths combined. Being an average citizen, paying your taxes, feeding yourself and your family and loved ones, frankly while in Miami, American citizen or illegal, is pure crap when one considers the overwhelming greed that touches every single Miami citizen. The average citizens are the only group who can deal with this Madoff type personality. However, the average citizen normally cannot be motivated to the necessary degree to run these characters out of town/office, or could they? Presently, the only way to deal with being in Miami is to earn enough to pay for their greed, catch a few lobster, eat some good food and make small talk otherwise one is labeled nuts.
Dear Anonymous 10:00 am. Thank you for reminding us what day it is today. How soon do we forget? Let's take a moment to reflect on the 343 fire fighters and 23 cops who died. Not to mention the people in and around the towers. I know because I was there. And I will not list my name because I don't want the recognition. But I went to dig people out of the rubble and to cart off the debris in wheel barrels. I am a woman and my arms are very thin. I pushed the damn wheel barrel until my hands bled. But that's ok. I am alive. I was one of many. I don't know if you all realize this but the towers smoldered for 3 months afterwards. The fires in the subways burned for what seemed like an eternity. Thanks again for reminding us to remember those who died today. Oh, I moved back to Miami in 2003 and have the privilege of living in the grove. Signed truly anonymous...
I was at the Budget Meeting yesterday. After hearing Manny Diaz speak I was surprised that no one in the audience shouted out “Liar” or threw some shoes at him. The man has no shame if after eight years of ruining Miami he can blame the economy, declining property taxes and drop in the stock market for creating the Perfect Storm that has damaged Miami. He takes no blame for the eight years of his efforts to have high salaries, unrealistic pensions, over building, unethical behavior or any of the ills that have beset Miami. He made no effort in saying that he would forgo his salary or pension. David Sarnoff the former Chairman of RCA & NBC is quoted as saying “Work and live to serve others, to leave the world a little better than you found it and garner for yourself as much peace of mind as you can”. Unfortunately it did not apply to W and will not apply to Diaz either. So much for a Legacy! Harry Emilio Gottlieb
Harry, for a moment there I thought you were talking about George Bush. Only time will tell whether Manny's vision is ill fated or not. You can't blame the economy, drop in the stock market or any of those global downfalls on him. As for building, keep in mind that we are two steps ahead of any other growing city with buildings up and filling in at a fast rate according to reports. I don't want this for the Grove but for Downtown, absolutely. We need a vibrant DT. These bad times will not last forever. I do agree that a shoe should have been thrown but not to Manny. It should have been thrown to Regalado for the cheap shots and grandstanding. Someone other than the Mayor should have stood up and said "You lie".
Mathilda, statistics can be decieving. There is a real increase in Downtown....however there is also a real decrease. Higher rates of homeless, hundreds of foreclosures in Miami Dade a MONTH.
Funny how criticism of The One is called "hate mongering." What's up with that? I thought that "dissent was the highest form of patriotism," or something.
Mathilda I absolutely agree with your statement. I would love to see Regalado's office payroll and take home cars, I bet they are very similar to the mayor's office, if not more, yet he sits there so judgemental pointing fingers at everyone. If he really practices what he preaches, everyone should know what his office spends.
Anonymous,
Ask Regalado's office yourself.
It's easy to point fingers however history will show you he is always under budget and is the only Commissioner to consitently donate his office account money to District 4
Interesting suggestion 5:45 pm. Contact Regalado's office and request their financial statement. Uh, huh. I bet it will be as transparent as his income tax statement. What is Regalado's yearly reported income? Isn't it $4000 or $5000? Right... So what makes you believe you are going to get a full accounting of his office expenditures? Mathilda, you are spot on girl! Just as Manny was spot on when he called him a liar. Wish I could have been there to see that!!! And then the hissy fit Regalado threw!
Isn't it ironic that in May and June this year Manny Diaz and sidekick Larry Spring were telling the world how strong Miami was. So strong they demanded the local taxpayers transfer over $3 bil to a private foreign company. Manny and Larry even used the taxpayers money to fly to NYC and there they told Wall Street salesmen that Miami's finances were strong. Now it is August and September and "suddenly" they tell us Miami is facing bankruptcy.
Could they be indicted for misrepresenting the facts? Arrested?
In memory of 9/11 and the firemen and women that were willing to give their own lives to help the victims at the World Trade Center, I find it in extremely bad taste for any politician or lawyer to compare his or her occupation to that of people that help to keep us safe. Do you know any lawyers that, during a crisis, must leave his or her home and family to help the community? Scary hurricane coming? Guess who's not home? The fireman. If you were stuck in a highrise, who would you rather see at your door, a lawyer or a fireman?
Why is it that when people get a little educated, they suddenly think that they are above it all? Pissed off that you got all that schooling and firepeople are making more than you? Try putting your life on the line once in a while and then we'll talk about what you're worth!
I don't think some folks are being negative when they state firemen are overpaided and then someone else replies that they risk their lives for all of us. The point is frankly "so what" So do police officers, so does every soldier, a life guard, the coast guard, an FBI agent----so does every doctor who comes in contact with disease, so does a lawyer representing the state and angers some criminal mind when found guilty and so does every person who drives safely when so many have phones to their ears when driving and so do I when I trim and prune my 35 feet palm trees to keep my yard looking nice. Life has always been dangerous, hell, there's been about 88-billion human like people here since we developed the modern brain, hell, everyone single human, horse, dog, cat and dolphine is important----but, why does a firemen have to be paid so damn much money from our taxes? Hundreds of them in Miami are collecting about $13,000.00, monthly during retirement. I'm not jealous, it pisses me off to have to pay out that sum of money month after month and year after year. But, what's worse is it is all political, that really get me. Sure, I want them to come if my home catches fire, as they should since we are paying a high price for fire protection in Miami, Florida. And if they don't come I have a special water system to help me take care of it myself.
We all know how much the firefighters are paid, but do we have any more information than that? Does anyone actually know how many firefighters are injured or killed in the line of duty? Or how many fires they actually put out? How many fire calls they go out on per shift? Is it 0? 100?
I don't know the answer, and it seems like no one else does either... so how can anyone be taking sides here when we don't have all the information??
We can only debate the cost/benefit and "value" of our firefighters when we have all the facts... it seems like conjecture and emotion are carrying the day right now.
It's been a long time since I've beheld the type of manipulation and circus antics on the dais of the city commission that Regalado treated us to in the past few days. This type of blatant twisting of the truth for a sound byte opportunity on the campaign trail is offensive, and not just to Mayor Diaz. We need solutions not grandstanding for political gain.
Actually, if you look at the numbers, firefighters are a bargain for pensions. Rarely does a firefighter "outlive" their pension. In other words, what is paid out is less than what was contributed. Why? Because firefighters die much younger than the average person. That's a fact.
Firefighters dying young is a generalization. What happens if a firefighter gets a pension for 40 years? $200,000 per year (indexed) for 40 years would cost the taxpayers $8 mil. Maybe $12 mil. Anyone in the private sector getting a $8 mil pension?
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