Shall We Borrow More to Balance Our Budget?? I Don't Think So.... ~ Annapolis Capital Punishment

Monday, April 26, 2010

Shall We Borrow More to Balance Our Budget?? I Don't Think So....

Come to City Council tonight. Do we really want to borrow more? This line of credit is for current expenses and will be paid off with next year's revenues.  The mayor's current budget has NO provision in it for paying back the line of credit so we may pay it back in October with tax receipts but we'll be in the same position of needing to draw down on the line next spring to make payroll (or sooner). According to some estimates, it looks like the city's structural deficit is somewhere between $12 and $14M.  Yes, M as in millions......

I SAY NO MORE BORROWING>>>>>>NO MORE TAX AND SPENDING......(see the below post from Alderman Ross Arnett)

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1 Comment:

Will Small said...

First regarding raising of the city's debt ceiling. It's my opinion that as a short term fix this is reasonable though it should be built to prevent a viscous cycle, which could be codified in the legislation that allows the raising of the debt ceiling. For example, to mandate that this raised debt ceiling be used only for short term budget crisis which can be seen through. For further example, to continue services through October, while examining the results of cost cutting and corresponding budget balancing. If the budget is not balanced for next year, have a schedule of actions or cuts that are legislated in. If we are still paying for this year's budget with next year's projected revenue, to balance that budget without spiral borrowing we would need to cut costs corresponding to that amount to balance.

On subject of red tape cutting, why do we still pick up residential trash two days a week? While we study the issue, we continue the increased number of waste vehicles added for recycling, and the trash stream has declined significantly. We need to cut the excess vehicles and procrastination has cost us a lot and continues to.

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