Tuesday, March 06, 2007

AM I CRAZY or is County Spending? by Geniusofdespair

I was bored so I just looked at Miami Today, and found this article: County wants one thing from Legislature: money To quote:

“Miami-Dade officials hope the state will start solving the county's cash crunch next week. But they know the reality. Florida is in just as tough financial shape as Miami-Dade, so they hold out little hope of receiving a cornucopia of currency from Tallahassee.”

Cash Crunch? Did they say Cash Crunch?

In this crazy Real Estate market of the past few years, we have had more property taxes, more property sales, more increases of property taxes and more document stamp money than ever (On a $500,000 house the County collects about $3,000 with the document stamp)! It was a gold mine for the county coffers. The money should have been flowing, shoveled in wads of giant piles. And, on top of that we just passed that colossal (and I might add stupid) General Obligation Bond Issue during the depressing last presidential election. why did you vote for that people? The county should be rolling in dough.

And now Tallahassee has no money either?

And, they are all going to lower our taxes? “Toto there is something really bad going on here.”

Gimleteye, you analyze. What is going on? I am about to flip my lid. Actually I was going to write “what the ....” But I changed my mind. (Press read more...)

The Sunpost Editorial -What’s More Important Than Drafting Another Marlins Deal? Plenty.- seems to agree with me, I am not the only one concerned that the county wastes our money, excerpt below:

"County officials don’t owe the Marlins anything. County officials owe us. And what they owe us is an accountable and efficient government, one that doesn’t overspend tens of millions in taxpayer dollars on capital projects that are never finished; doesn’t let its housing agency become a slush fund for connected developers; doesn’t allow its airport to become, as the mayor himself put it, “a stomping ground for greed”; and doesn’t ignore the Water and Sewer Department as some of its employees failed to collect connection fees from Miami Beach and Sunny Isles Beach developers."

16 comments:

Anonymous said...

The county might be in a cash crunch from the last 6 or so years of being handed unfunded mandates from the state and fed governments... everything to national security requirements to education cuts to cuts in indigent care. Now the Federal administration is further cutting billions out of Medicaid by administrative rule! These are things we cannot overlook.

And now the state wants to cut property taxes and raise the sales tax to offset cuts to local governments.

Realize that the state sales tax is collected at the state level. Do we really think that funding will be equitably distributed to local areas? especially urban areas like Miami that need funding? I wonder if ANYONE really believes that the state will treat South Florida fairly!

Geniusofdespair said...

The money coming in will never get better for the County. There are good programs but there also is boondoggle after boondoggle. We can't continue to bail them out. If they couldn't make it in the heddy times --2000 till 2006-- what now for them?

Anonymous said...

you ain't kidding we/they are in trouble. Haven't they ever heard of socking away money for a rainy day?

Anonymous said...

Anonymous 1 - Just what are these "unfunded mandates from the state and fed governments" and where in the budget are they highlighted. I've read through the 06-07 budget and I can’t see them. If this is such a problem why has the county not made them more public?

Anonymous said...

G.O.D - According to the Miami-Dade County PY Adopted Budget Vol 1 Page 9, property tax revenue for FY 2004-05 was $ 1,235,250,000 (32% of revenue) and FY 2006-07 $ 1,729,363,000.00 (37% of revenue). So in three years property Tax revenue jumped $ 494,113,000.00, just shy of ONE HALF a BILLION DOLLARS. Also note that it went from 32% of the budget to 37% of the budget. A 18% jump FY 04-05 to FY 05-06 and a 19% jump in FY 05-06 to 06-07 or a 40% jump in three years in property tax revenue. Also note that this is with the “save our homes” cap in place.

Anonymous said...

unfunded mandates are cost shifts to local governments that are required programs but are not funded by the state and fed. These are largely done through requirements within legislation.

For example, at the Port of Miami and the Miami International Airport, there have been extraordinary security measures required of the local government by the Federal government after 911 with very little funding if any at all.

costs associated with health care, the judicial system, requirements in education without appropriate funding. these are all unfunded mandates.

as to your question about why local governments are not making this an issue, I don't know. Palm Beach County and other counties around the state seem to be clued in and are putting the effort forth.

Anonymous said...

by the way, I am in no way defending the county in their assessments and collection of property taxes... I'm merely making the arguement that if our property taxes are reduced by state law and in return we get an increased state sales tax, we need to be aware that state sales tax is distributed to counties around the state with a political bent. and that political bent has routinely not been favorable toward Miami Dade.

Geniusofdespair said...

rthrc -- thank god (the other one) that you came along. Someone who can do math! Don't stop reading our blog. We need you to help educate the readers.

Geniusofdespair said...

Anonymous --- I never thought about what you said:

we need to be aware that state sales tax is distributed to counties around the state with a political bent. and that political bent has routinely not been favorable toward Miami Dade.

and I never knew what an unfunded mandate was. Thank you

This has been a really good discussion I am learning from it.

Anonymous said...

Anonymous 1 – I also have the same concern about the state giving Miami-Dade County a fair allocation. If actions in the past are any indication we will be shortchanged by the state. I’m not for the sales tax solution even though it would reduce my overall tax burden. The county would just make up the shortfall with some other tax increase.

Anonymous said...

here's an article regarding unfunded mandates and their impact by NaCO National Association of Counties, albeit dated, it makes the point of what it is and how we get to the point of paying for these requirements. keep in mind this is a largely federal list, there are plenty of state mandates too.

http://www.naco.org/Template.cfm?Section=justice_and_public_safety&template=/ContentManagement/ContentDisplay.cfm&ContentID=15994

Anonymous said...

I think Port/Airport security (Federal), and transfer of the costs for running the court system was transfered to the county (state) last year was a big issue.

Another one is impact of immigration on the county. It jams up the social service systems and the state or federal governments do not care to cost-share.

You need to think about the next Cuban Crisis. Someone is gonna get stuck footing the bill.

Anonymous said...

Anonymous 1 – Thanks for pointing out the items that may not be under control of the county. I do have a concern about how the county responds to some of these issues. One that comes to mind is the airport and port security and the use of overtime to handle the issue. Overtime may be a short term solution to staff shortages but other less costly solutions do not seem to be on the drawing board. The bang for the buck in paying time and one half and double-time is not in the best interest of taxpayers.

My biggest problem with the county is lack of oversight and budget control. I was watching the commission meeting today. Commissioner’s were discussing the HUD housing problem and a memo they got form US government HUD. One commissioner was on one hand saying that they, the commission, had no authority over how money gets spent and how they cannot get access to detail budget reports. On the other hand she went on and on about how the mayor now runs everything. Watching this does not give any confidence that our spending of our tax money has any oversight.

Anonymous said...

In this crazy Real Estate market of the past few years, we have had more property taxes, more property sales, more increases of property taxes and more document stamp money than ever.This article is very interesting for Flipping Real Estate Tips, click on the link
to find similar article Flipping Real Estate

Anonymous said...

While I am not one to usually criticize government spending alot of welfare funds has been wasted. Look at how special interests siphoned off money from the public health trust. Worst than the drunken sailor spending of the county is what has happened with many of the cities. From Miami Gardens to Coral Gables cities have no savings or are essentially broke. As real estate continues to crash how are the short falls with what were expected to be surpluses, going to be covered?

Anonymous said...

Here is a good article somewhat spelling out issues with the property tax rollback and increase in sales tax http://www.miamiherald.com/458/v-print/story/34814.html