Reporters from The Star are shaking in their boots so they aren't really reporting budget stuff right now but there's a current ordinance under consideration right now that yet again demonstrates the financial hardships currently facing Kansas City.
COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 090194 is basically a plan to raid every fund in City Hall that isn't already locked down in order to "close the gap" for the general fund.
Kansas City's budget officer, Troy Schulte explains it all very calmly and congenially but its more like a fire sale.
Writing about budget stuff is boring but the basics of it are simple enough:
There are a variety of general municipal funds Kansas City holds which collect interest - The interest is generally put back into whatever fund from which it originated. This ordinance suggests that, unless otherwise noted (or restricted), the interest should now be pooled into the general fund. It's part of a desperate search for "idle cash."
It sounds like the Capital Improvement Fund will take the biggest hit.
Still, I like the title . . . The Pooled Investment Portfolio Interest Earnings Allocation Policy rolls off the tongue nicely but fails to realize a simple fact.
THE INTEREST WAS BUILT INTO THESE FUNDS FOR A REASON!!! AND EVENTUALLY THIS KIND OF ROB PETER TO PAY PAUL SOLUTION WILL BREAK OTHER KC FUNDS BECAUSE THE GENERAL FUND IS AN ABYSS FROM WHICH NO CASH EVER RETURNS!!!
Again, if any cash laying around City Hall is not restricted, if it's not bolted down to the floor . . . The City Council is looking to throw it into the general fund in order to finance P&L Party Times and other money losing operations. It's a phased approach so the money suck will happen slowly . . . In the meantime, 090194 is (out of committee but) still on the table.
Watch the whole disaster for yourself if you dare . . . And then come to the painful conclusion that the logic which supports this move comes from Kansas City politicos like Jan Marcason who are still desperately hoping that the Obama Stimulus will save us all . . . If not, this town keeps moving closer to financial disaster.
Damn good reporting dude. Did you forget to thank a Tipster?
ReplyDeleteI think I saw this in The Star.
ReplyDeleteI love The Star. I think Tony is a bit of a poseur sometimes. But in this case, no no you didn't read any of this stuff from The Star because they've been way behind on the budget.
ReplyDeleteThe city budget and department funds are all a shell game. It's scary just how many hands have dipped into many pots. There is no "lock down". Good luck finding some money.
ReplyDeleteThis action is from the playbook used at the County.
ReplyDeleteHardball politics are sure to follow.
If the citizens think the EEO issues were hot, just watch the ethical and legal fights that will follow this activity.
Nothing like mayhem to get more reporters on the beat.
I don't know why anyone should be surprised at how government bodies operate. Combine their relatively low intelligence with their need to be liked and they can never make good decisions.
ReplyDeleteGood that the city is looking for ways to move money into the general fund accounts. How else will be pay for our sins of supporting Mayor Kay Waldo Banres. Of course, we have to pay for our sins for putting the Funk in too. Lets get a fundraiser underway to help the multimillion deficit next year.
ReplyDeleteThey didn't use the county playbook -- Lenexa has the same policy and they had it first!
ReplyDelete