economy

How’s that contingency plan working out?

Remember when local economist Mark Weber warned Sioux Falls about the economy and preparing for the worse? Well guess what, they were not listening, once again;

Sales tax collections in Sioux Falls through July are down 0.4 percent from last year, causing some city councilors to worry that a projected sales tax growth of 4 percent in 2010 is too optimistic.

Eugene Rowenhorst, the city finance director, told the City Council during a budget hearing Monday that sales tax revenues did not grow at all in the first seven months of the year. The council originally had budgeted for a 6.5 percent increase this year, but that later was modified to a projected 2 percent increase.

It’s not like you couldn’t see this coming for months and months. It was pretty obvious that SF was not immune to the recession, but it doesn’t stop Eugene from spinning it even more;

But the fact that the tax revenue is down this far into the year has some councilors worried about next year. During the budget meeting, council member Kermit Staggers questioned why the 2010 proposed budget projects a 4 percent increase in sales tax.

Rowenhorst’s answer was that the economy is expected to improve by next year, and the 4 percent increase is a middle ground between the 2 percent growth that eventually was projected for 2009 and the historic 6 percent to 7 percent increase in sales tax receipts.

We’re coming out of the recession and getting back to a more normal growth phase,” Rowenhorst said.

Sorry, Eugene, I have trouble taking the word of a man who basically ignored economic trends by not preparing for the worst. I believe Munson did not care what happened with the economy, it is his last year in office, and he had a legacy to build. How do you justify cutting the budget when you can ‘pretend’ everything is going to be fine down the road. I have often been told by many people that Munson is a positive man, and I believe that, but IMO, lying to yourself and the public to get what you want is very negative, very negative indeed. I have been saying it for years that Munson has put his priorities above the public’s best interest, and while McKennan Park residents will be enjoying a new $170,000 shitter and the Rhino’s at the zoo have a new shed to sleep in the rest of us and the next mayor are going to have to figure out how to fix this shortfall and overspending by Munson.

The first thing the next mayor needs to do on day one is fire Eugene and anyone who is loyal to him in the finance office, and employ someone who is in touch with reality.

How nice. The Gargoyle Leader’s Ed Board cares about tax payers, now that we are all flat broke

I had to read this editorial twice to make sure, they were saying what I thought they were. I’m shocked!

The allowance to raise property taxes by 3 percent or the rate of inflation each year is just that. An allowance.

It’s not an automatic function that city officials should customarily build into each year’s budget.

Yes, but that is the nature of socialistic, tax and spend, big government Republicans, they don’t care if the average Joe can make ends meet, they only care about their ‘ends’ and ‘behinds’.

As residents continue recovering from the economic downturn, a respite from property tax increases undoubtedly would be well timed.

Indeed, there are times when even in the face of economic downturns it makes sense to spend in ways that take advantage of unique opportunities – such as issuing needed bonds when interest rates are low.

It’s hard to see how automatically raising property taxes fits into this category, though.

Actually, it’s the exact opposite. The 2010 budget offers a unique chance to hold the line on property tax increases.

City officials need to offer a better reason than they’ve stated why Sioux Falls should pass on this opportunity.

You mean, you agree with Staggers for once? Get out!

Monday Night Funnies (kinda, sorta)

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Nobel Prize winning economist, Paul Krugman was on the Colbert Report tonight, he had this to say (paraphrasing);

“I think the Obama administration understands how bad the economy is, they are smart people, they just are not forceful enough to fix it. I mean, they aren’t crazy or stupid like the previous administration.”

I guess I am not sure which was more? Crazy or stupid.

Anti-babe of the week: Sally Kern

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Sadly, it’s not rare that a right-wing loony from my home state makes the news.  However, this one has, in addition to taking the cake by saying gays are a bigger threat to America than terrorism, has now officially left reality for some other bizzaro plane of existence.

In her most recent act of outright stupidity, Kern has issued a proclamation for morality, which you can read here. She has also publicly blamed gays and illegitimate children for the current economic mess. It seems fundamentalist nut-jobs like her have moved on from witches, gypsies, and jews to gays, pornographers, and abortionists, whom it’s still OK to hate. I’m not sure what’s sadder, that people like her exist or that they get elected to public office – in a large city no less.

I’d pay good money to see her in a debate with an actual thinking person. Theocrats cannot win such debates, and ultimately must rely on the righteous stupidity and willful ignorance of their supporters to suppress their opposition. For a case study, look at the recent Iranian elections. Theocracy is dying. Hallelujah!

The bright side in all of this is that 90% of the people commenting on the story think Kern is a complete tool with no business in government.