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03/01/04 Houston's Budget Crisis
To: Dallas City Council 2-29-2004
Reference: Stadium and Super Bowl Fail To Sustain Houston
Someone named "Rob" over at
the Cowboys' publicity shop
keeps referring to the revenue Houston is reaping from
their new stadium and the
Super Bowl. "Rob" needs to speak with
Annise Parker, the Controller of Houston and learn much more about their
huge budget crisis.
Ms. Parker states:
"The search for efficiencies is already
intense as a huge budget crisis looms for FY05. We
hope the recent minor upturn in the economy continues
because the city faces dramatic increases in the expense column, notably
a $50 million contractual raise for police and a $20-$30 million jump in
health insurance costs as well as pension fund underfunding."
Also, the below reports indicate Houston has
BIG financial woes right now.
The Mayor of Houston should know what he is
talking about, and things are NOT GOOD down there.
"Rob" should speak
with Mayor White.
Excerpts from Real Estate Center at Texas A&M University
2/12/2004 --- City layoffs all but certain (Houston):
"Layoffs of city employees are inevitable as
Mayor Bill White?s administration struggles to bridge
a huge budget gap that looms this summer. Other
cost-cutting ideas also are in the works, but layoffs will
have to be part of the effort to overcome the expected $150 million
shortfall in the fiscal year that begins July 1. Among the other
proposals is a plan to save about $13 million by passing much of an
increase in the cost of healthcare coverage to city employees.
Still, more will have
to be done. City officials warned recently that the cost
of providing health care benefits to city employees, retirees and their
dependents will jump by $40 million this summer ? a 24 percent increase
that mirrors a nationwide trend of higher costs in health care.
Although
the city has absorbed the full brunt of such increases previously, it
can no longer afford to foot 88 percent of the cost."
It is difficult to find any city in the U.S. that is paved with
cash as a result of financing a stadium
project. It is probable that
cities will keep trying to be among to first to become profitable, but
at the continued expense of the citizens.
Regards,
Rad Field
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