By Bill Oakey – August 13, 2015
The City Council is now knee-deep into their budget deliberations. All of you reading this are wondering about the answers to some critical questions. These are questions that the news media should be asking the Council members, to find out how seriously affordability is being taken into consideration so far:
- How many cost-saving proposals have each of the Council members brought up so far in the Budget Work Sessions?
- Which cost-saving proposals have they recommended so far?
- How much money has each Council member asked to be cut from the City Manager’s proposed budget?
- Has anyone on the City Council suggested an affordability goal for reducing the budget?
- Has anyone on the Council suggested a target for reducing taxes or fees in the budget?
- Has anyone on the Council suggested reducing the huge increase in staff in the City Manager’s proposed budget?
- Has the Council agreed to use a sliding scale for City Staff pay raises, after City employees received two separate raises this year? Or, do they plan to capitulate and offer all employees 3% raises, including executives with lofty salaries at the top?
- Have any of the Council members’ proposals for new spending have been offset with corresponding cuts, to ensure a zero impact on each new funding request?
- Affordability was often listed as the biggest issue in last year’s City Council campaigns. Has the importance of affordability been front and center so far in the budget deliberations?
- Which Council Members appear to be taking the lead on affordability throughout the budget deliberations?
A Few Bad Signs To Be Concerned About
- According to a recent article in the Austin Monitor, the City Manager’s budget proposal would RAISE TAXES ALMOST TO THE LEGAL MAXIMUM! That is called the “rollback rate,” which is an 8% increase over the current zero “effective rate.” Specifically, Marc Ott’s proposal would raise the tax rate to 48.14 cents. The legal maximum rollback rate is 48.26 cents.
- We would see some relief from the new 6% general homestead exemption. But the bad news is that the proposed budget does not include any specific spending cuts to offset the revenue gap from the homestead exemption. In other words, taxes would need to raised to make up that difference!
- Andra Lim with the Austin American-Statesman wrote a City Hall Blog piece entitled, “5 Things We Learned As Austin Officials Started Hammering Out the Budget.” Unfortunately, three of those five items relate to NEW SPENDING that Council members would like to ADD TO THE BUDGET. While these programs may be worthwhile, and some appear to be, where are the cuts needed to offset these changes?
- Earlier this week, I was at City Hall for a meeting with a City Council aide. While walking down the hall, I encountered another aide who delivered some disturbing news. He told me about a trend that has emerged during the budget talks. Every time someone brings up a plan to cut some part of the budget, another Council member has a pet project ready to absorb that new-found money.
There is a simple three-word message that needs to be conveyed to the City Council:
Remember the Taxpayers!
Remember affordability! Remember the map of the City almost totally blanketed with double-digit tax appraisal increases for this year. Most homeowners will face the 10% appraisal cap, and any difference left over above the cap will be pushed into next year. Probably causing yet another back-to-back 10% increase in taxable value.
The Biggest Obstacle That Taxpayers Face is Business As Usual
It doesn’t take long for new City Officials to become absorbed into the status quo. A good word for that is “INERTIA.” Here is Merriam-Webster’s official definition of “inertia”:
: lack of movement or activity especially when movement or activity is wanted or needed
: a feeling of not having the energy or desire that is needed to move, change, etc.
“Business As Usual” was an appropriate title for the groundbreaking album by the Australian rock group, Men at Work, released in 1981. It stayed at number one on the Billboard music chart for 15 weeks and sold 15 million copies worldwide.
Thank you Bill. You are just too smart for this city. I am always impressed and wonder why we don’t hear others echoing your good straight-forward ideas for better management and common sense. Guess that would make Austin too weird, huh? Todd