Bankrupt Bernardino

Another California City falls! Apparently some budget makers in southern California don’t think the govenor’s new bullet train will bring enough economic opportunity to stave off insolvency! Imagine that.

Different city, same story: dropping revenues and increased pension costs. San Bernardino’s mayor was apparently unaware of how bad things were; city budget officials having presented false documents to the mayor and city council in recent years.
Where is the lesson? Well, there are a few but here are two:

1) Send people to represent you that understand budgets, budgeting, and economics. The feel good initiative people may have big hearts but you can’t make payroll on good intentions.

2) Demand continual transparency with your tax dollars. Make sure budget dollars are allocated and prioritized according to the basic needs of the municipality.

It’s not enough, but its a start.

-Sean Morgan

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16 Responses to Bankrupt Bernardino

  1. Joseph says:

    Demand continual transparency with your tax dollars. Make sure budget dollars are allocated and prioritized according to the basic needs of the municipality.

    What is this? Some kind of joke? I urge you to go and watch the video of the last city council meeting. Then you will see how clueless and arrogant the Gang of 5 and the bureaucrats are. And just watch Chief Beery’s bumbling as he tries to explain his shortfall even after he gets an extra quarter million dollars. It’s hilarious.

    And Andy Hokum’s take is everything is fine just as long as he raises your taxes. The other 4 most likely believe the same thing but just won’t say so.

    See the reaction to Toby and Stephanie Taber’s repeated requests for transparency and pointing out that these arrogant bureuacrats are breaking the city code. The bureaucrats and the Gang of 5 couldn’t give a rat’s droppings.

    It’s a sad, sad joke but I ain’t laughing!

  2. Joseph says:

    And by the way, San Berdoo went bankrupt and they were only spending 75% of the general fund on city gummit compensation. Chico is up around 87%.

  3. Joseph says:

    And meanwhile the Gang of 5 will spend a small fortune outlawing grocery bags and all of Schwab’s task forces and committees will spend even more money looking for other “sustainability” issues and ways to dictate how we will be allowed to live while the city finances are completely UNSUSTAINABLE.

    WHAT IDIOCY AND ARROGANCE!

    It completely baffles me why people aren’t furious and raising hell about all of this.

  4. Toby says:

    A few days ago I was reading about the mayor of Scranton Pa. cutting all city employee pay to minimum wage, his included. I would guess Scranton is about the size of Chico, give or take. The story I read stated that 400 employees were affected. My guess is the teachers got a pass and that is why he did it in July.
    How will Chico deal with it? It is just a matter of time.
    I saw a headline last night, Spain raised their sales tax to 21%. That will do nothing but speed them down the drain. Would you buy a car or a house or anything other than the essentials if you have to pay an extra 21%?

  5. Post Scripts says:

    21%? That is the kiss of death for their economy. Thanks for the heads up about Scranton too Toby, I was going to do a story on that, but then the San Bernardino story broke. When you look at the big picture it doesn’t look good for us. I’m worried, but not much I can do except try to ride out the coming storm.

  6. Post Scripts says:

    Joseph, some of us are furious and working hard to try to save Chico. If you are interested in attending a taxpayers meeting put on by the BTA I’m sure you would be welcome. I could let you know when the next meeting is?

  7. Mark Sorensen says:

    Toby writes: “Spain raised their sales tax to 21%….”

    Not only does it put significant downward pressure on commerce and their economy, but it puts big-time pressure on increasing grey market and black market activities as the intelligent humans work to escape from the pain of a punitive tax.

    For all of these reasons I’d bet that their “sales tax increase” results in a decrease of their sales tax revenues.

  8. Peggy says:

    Scranton, PA mayor also tried to raise property tax 78%.

    Doherty most recently put forward as a recovery plan an unpopular proposal to hike property taxes by 78 percent over the next two years, which the city council rejected.

    Full Story here.
    http://www.wsws.org/articles/2012/jul2012/scra-j11.shtml

    Chico is also undergoing a huge downtown remodel to add bike paths, roundabouts, ripping up streets and adding one way only streets at what cost? Is it only our federal taxes paying for this or is there matching local funds too.?

    Added to the past mistakes this city council has made, isn’t this going to just bankrupt us sooner?

    http://www.chico.ca.us/capital_project_services/FirstStreetSecondStreetCouplet.asp

    First Street / Second Street Couplet:
    The 1st Street / 2nd Street Couplet project proposes to enhance bicycle and pedestrian modes of travel within the downtown core. The project’s limits are on 2nd Street from the Union Pacific Railroad tracks easterly to the Camellia Bridge over Big Chico Creek and then continuing along 1st Street westerly to Salem Street. It also encompasses all north /south streets from Salem Street to Flume Street. The project will change bi-directional traffic flow to eastbound one-way traffic flow on a portion of 2nd Street from Broadway to Flume Street. Bi-directional traffic flow will also change to westbound one-way traffic flow on 1st Street from Flume to Salem Streets. A roundabout is proposed at the intersection of Camellia Way Bridge/1st Street/2nd Street/Flume Street. The project will take a holistic approach to address several potential issues/improvements within the project area.

  9. Toby says:

    Have you seen in the news (some news) a lot of ultra-rich people are denouncing their US citizenship and heading elsewhere? That to me is no small thing, it is a very loud alarm being sounded. Before “the usual suspects” chime in with their usual 1%ers BS, the latest to leave is the widow of Bill Clinton’s buddy Marc Rich, and her name eludes me. I can tell you she is a huge democrat ATM. She maybe ignorant in how she spends her money but she is smart enough to know when to flee in time to save her skin.
    Is it just me or do the little dots such as Chico, Scranton, Stockton, lead to bigger dots such as the bullet train, the state of California, Obamacare? Those dots lead to the US national debt, Greece, Spain, the Euro and the Euro Zone. They make a very ugly picture of incompetent leadership, power hungry governments, out of control spending and taxation. Clearly spending more money, growing government and out of hand taxation is not the answer, it is the cause. Why would our elected officials with the power to actually change things choose to take a proven path of destruction to economic Armageddon? That was a rhetorical question, we all know the answer.

  10. Rick Clements says:

    Look, let’s all treat this financial and administrative mess for what it is. I wrote months ago that this dilemma all of these municipalities are enduring, including Chico now, are the conclusive results of what the Unions and the Democrats did in coming up with their plan to consolidate and grow their power base by targeting the public sector workers whose numbers have grown so huge that frankly, I think it will be impossible to lay that many people off without suffering extremely dire tax income losses whose consequences most cities rely on to insulate them from going under.

    It was called the “Cash for a Vote” program. A BRIBE for a vote. They offered these ridiculous pensions and salary packages with one hitch, the worker would and will through union dues backed political ads; support these generous Unions and vote Democrat.

    It worked until the recession hit, something both parties never figured on happening. But it did, and now the Unions are losing millions in memberships. Their attempts to circumvent cities from declaring bankruptcy are all meant to keep the public workers who relied on those cash windfalls they came to rely on monthly; from turning against these Unions and Democrats who offered them in the first place, and subsequently, their political scam of bribes got all these workers/victims into their current financial jam.

    Yet still, the dumbest and most dishonest 5 liberal council members that in my 42 years of living here, I have ever seen; these party first, policy second arrogant militants are willing, as shown through their self serving style of governing; to bankrupt this city no matter what it cost the taxpayers, before they will admit their brains operate only when their put in neutral. They spend more time coming up with a reason or a person or an event to blame the upcoming financial mess on, and they are confident that the Chico News & Review ( the bible of our local progressive liberalism and winner of the best contrived con-job journalism award) they will convince the students whose votes will save them using a Save the City of Chico campaign to support their made up experiences for saving all of mankind. The Progressive Liberals are not only counting on it, they are experts at using the dumb of the young. This political strategy was invented by their infamous leader Bob Muholland who invented the use of taking a table napkin and turning it into a hit piece mailer.

    Will the Middle Class vote? Not until these liberals have burned their homes down for failing to pay for and support our protective city services.

  11. Tina says:

    That would be Denise Rich, Toby, ex-wife of Marc Rich, described as a “shady” commodities trader (oil) who left the country because of tax evasion problems…he’s the guy Bill Clinton gave a last minute pardon before leaving office. Now the lovely Denise is outa here to avoid paying high taxes. Lefty big shots are such phonies.

    Cities are beginning to fall like dominoes. That means the country is in pretty bad shape.

    Romney is looking better day by day. I heard him suggest a zero percent tax rater on savings, dividends and interest as one of the ways to jump start investing and opening up foreign trade to encourage manufacturing. Americans need work and the sense that they can improve their situation…just these two thins would make a difference. Extending current income tax rates, ending Obamacare, and making reforms to bring down the cost of healthcare (and support docs and care providers) would also get ‘er done!

    I have a great deal of respect for those of you on PS who are working hard at the local level to “transform” the make-up and/or direction of the current Chico board. Sounds like a bunch of giddy teenagers have had free reign for much too long. It’s time for some adults to take over and put Chico’s house in order.

  12. Peggy says:

    I know it was a rhetorical question, but I couldn’t resist.

    Obama set the stage and the example for everyone to follow when he appointed tax cheater Tim Geithner Secretary of the Treasury.

    How else could Pelosi and the rest of those throwing stones, who made $1-5 million over seas and the widow can take her money and run, feel justified in accusing a republican of being greedy for wanting to legally keep what he earned.

    Dont forget the huge percentage of income differences given to charities between Romney, and Obama and Biden.

    And also Bidens good friend John Corzine and the missing billions from MF Global.

    The list really is endless.

  13. Post Scripts says:

    Mark, I’m sure you are right. As I recall when people start paying more than 18% in taxes the amount of tax cheating starts to rise and by the time its up around a 28% tax rate the cheating is so wide spread that the country is taking in less than it was at 25%.

  14. Post Scripts says:

    Peggy, that’s true, Corzine is kinda symptomatic of the corruption that is really damaging the economy. When times are tough like they are now it exposes the fraud and we sure have an abundance of it. I can’t help but think if these brilliant crooks put the same effort into making an honest buck how much better off everyone would be.

  15. Post Scripts says:

    Thanks for commenting Rick, you are right on target. If we only had about 20,000 voters like you this place would be an oasis for prosperity.

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