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."