NEBRASKA TAXPAYERS FOR FREEDOM WORKSHEET:
OUR ANALYSIS OF THE FY 2011-12 OMAHA MAYOR SUTTLE BUDGET.
Good evening. My name is Doug Kagan, chairman of NE Taxpayers for Freedom, 12320 William Street. Mayor Suttle publicizes his budget as one that “reflects responsible spending and responsible savings.” To the contrary, this budget sees total expenditures reaching 10% higher than the previous budget, which itself had raised spending by 11%. As you can see from our analysis which we are providing you, this spending is predicated upon an unstable revenue stream. Some revenues, like the restaurant and bar tax and license and permit fees, are up. However, stable general property tax revenues will rise by less than 1%, as valuations are flat. Interest income is low. Other revenue sources, like street and highway funds, are falling, or stagnant, like vehicle taxes and sales taxes. This instability in the revenue stream should alert city government to not increase spending by a substantial amount.
This budget depends on wishful revenues. The tourism bureau estimates 100,000 hotel rooms booked in 2012, yet the number has steadily fallen to an estimated 85,000 in 2011.
The Suttle budget displays a tidal wave of spending. The Tourism Bureau and other departments spending more than gathering in revenue. Pension costs rising in depts. by 17%! The mayor’s office budget rises by 5%, mostly for employee salaries, yet the number of employees is fewer. Salary and benefit hikes by double digits. A bloated bureaucracy, with 3 new employees to handle the restaurant tax. An appropriation for a Parks Dept. public awareness program. Specialty, overtime, and longevity pay up by double digits. Health care costs up by almost 12%, yet the mayor does not bargain hard for higher employee premiums. The Finance Dept. estimates that employee health costs eventually will consume 50% of the General Fund budget. Mayoral cuts are phantoms. He authorized the police division to trim 9 employees to 780, the present number, so no one would suffer a layoff. Mayoral spending in this budget is much too great considering the unstable revenue stream, recessive economy, and evaporating federal funding.
We suggest greater privatization of services, e.g., city parking garages and lots, street maintenance, curb and sidewalk work.
Among rare positive nuggets, a massive infusion into the cash reserve fund, a necessary requirement to pay for future mayoral reckless spending.
Among our suggested budget cuts:
- Many city departments are purchasing new office equipment and furniture, which the city could buy at auction or used. Savings: millions.
- Lower the number of battalion fire chiefs, the number which has risen from 27 to 30. Savings: millions.
- Eliminate funding for Omaha By Design, as we have city planners. Savings: $50,000.
- Defund homeless day services, which private charities can provide. Savings: $100,000.
- Defund the truancy programs, as the city is not an educational entity. Savings: $365,000.
The list goes on…..
We ask you to mark this budget “Return to Sender” and request that the mayor make more comprehensive budget cuts.
Doug Kagan, chairman NE Taxpayers for Freedom
Email: netaxpayers@gmail.com.
NTF worksheet: ccwatch93.doc. 8-11.
