Villaraigosa's Smoke-And-Mirrors Budget, Part 1
By Walter Moore, Candidate for Mayor of Los Angeles, MooreIsBetter.comMayor Villaraigosa’s proposed budget, released last week, spans 2015 pages. I haven’t read all of them -- yet -- but I’ve already found a few items of interest, including a hidden tax hike that voters never approved.
In a 160-page document entitled, “Supporting Information for the Budget and Finance Committee,” Villaraigosa identifies some of the sources of funds he plans to use to pay for his increased spending. Here are two that caught my eye:
First, Villaraigosa plans to withdraw $93 million from the City’s reserve fund. That’s the fund set up to ensure the City will have cash in case of a fiscal emergency. But why wait or save for an emergency, after all, when you can spend, spend, spend!?
Second, Villaraigosa plans to get $20 million from the DWP by “selling” the City’s “fiber infrastructure” to the DWP. But, as you know, the DWP is simply a department of the City itself -- it’s not a private company owned by shareholders. So the “sale” is akin to you selling yourself your socks.
Why would one branch of the City purport to “sell” an asset to another? Easy! By pretending to “sell” the “infrastructure” to the DWP, Villaraigosa can increase the amount of money that you, the taxpayer, pay into the City’s general fund -- without bothering to get the required approval from two-thirds of the City’s voters!
The checks you send to the DWP will be used not to provide water and power, but to provide more funding for Villaraigosa’s increased spending. In short: Villaraigosa just raised your taxes, and he didn’t even tell you about it!
Speaking of budgets, if you haven’t already contributed to my campaign, there’s no time like the present. Visit MooreIsBetter.com if you want to save L.A.
Posted by Walter Moore @ 4/24/2007 07:15:00 AM
25 Comments:
did you see his 'growl' on the news, with Wendy Greuel?
pathetic.
Walter, if you can plow through 2015 pages of this proposed budget, you have my endearing respect. I'm sure you'll find other shenanigans though and thanks for doing this. Shine the light in the crevices!
isn't that what Laura Chick ought to be doing?
Glad you all enjoy this, but this is the tip of the tip of the iceberg. I'm collecting the other items for my State of the City address....
And yes, it IS outrageous. This is yet another example of career politicians circumventing laws enacted to protect hard-working taxpayers. What they cannot win in the polling booth, they steal through spreadsheets and sham transactions.
I want to agree with the position of great respect to Walter for reading this entire report. (Thanks for being a true Economist)
Although I handle my own finances, a system is in place at the credit unions where you can borrow your own money cheaper than what the going interest rate is. (plan is called-share pledge) The whole idea of the DWP selling 'rights' to the city is beyond obsered. They are all one entity. (Los Angeles) wHAT PLEDGE DO THE RESIDENTS GET.
What type of benift does this really intel, not any for the residents as it is expressed and understood at the moment. I have been reading the 'GRP' report relAting to the mayor attempt to decrease 'gang activity' so it look as though several of us are actually sifting these pages to be productive and change our social enviornment.
Walter, please keep me up to speed on any other piggy banks of millions that are being whisked by the residnets without so much say as a............. 'ooooppppsss' I GOT CAUGHT!
Matt, you are correct about Laura, they all have work to do. Keep it up.
ROSE HILLS REVIEW,
ANTHONY MANZANO
11:52A.M. ROSE HILL REVIEW =S ANTHONY NUKLEHEAD NUMNUTS AGAIN I DO THIS, I DO THAT, I KNOW THIS, I KNOW THAT MAN GET A JOB YOU LOSER NO ONE CARES ABOUT YOUR SILLY I DO's, NEXT THING YOUR GOING TO SAY IS THE SUN RISES WHEN I RISE YOU LOSSSSSSSSER!!!!YOU WHAT TO HEAR A JOKE? READ YOUR OWN BLOG HA! HA! HA!LOSSSSER
Walter,
You are reading the document correctly, however some of your conclusions are a little off.
Whenever a propriety dept like DWP, Airports or Harbor does something that shows up in the budget like you observed a couple of things come to mind.
1. Because LAWA follows strict FAA guidelines it much be transparent in all of its activities -- in 1987 the city of los angeles had surplus property that LAWA wanted for an expansion of its police headquarters. Now under the logic you were using this should be no big deal, however due to the FAA LAWA had to purchase the property for $650,000 and financially diclose it, it also appeared in the City of LA budget that year as receiving payment.
2. Harbor dept had to disclose the use of 3 fire dept helicopters to the State's Coastal Coastal Commission in 1992 -- and pay the City of LA $22,000 - which the city then showed as a payment into the general fund.
Now with your example it's very likely the DWP under federal guidelines with the Energy Dept or the state's ISO has to disclose such purchases to stay in compliance -- i will not say i am 100% for sure, but the pattern seems not quite so suspect Walter.
This may be why the City shows payment of $20 million, our City Depts that fall within disclosure laws of the state or feds are merely being good stewards of the laws in place.
Hope that helps.
The Fly
Isn't this the kind of bookkeeping that ENRON did to make them look like a company that was in the money and growing?
Council should remember how that ended.
To Fly:
Wake up and smell the rip-off!
"Surplus" property? How do you think a city winds up with "surplus" property -- and then goes out and buys more? And this isn't a $22,000 helicopter item. We're talking milliions.
Walter you are a self aggrandizing stupid fuck. You really think that you are disecting something and discovering things that others aren't?
First of all, the DWP, like LAWA and the Port, is a proprietary department, meaning it is run like a business and does not necessarily operate under the same guise as the rest of the departments. The proprietaries all have a board of directors, the commissions, that make all major decisions, much like a corporation. So, no numbnuts, its not like selling yourself your socks, its like a subsidiary selling the parent organization something, which happens all the time.
Second, he is increasing the reserve fund, not decreasing it like you imply. This is all being done to decrease the structural deficit, which is sound budget policy.
OK, now go ahead and call me a villaraigosa groupy and all sorts of other ridiculous names just because I challenge the stupid shit you spew, as if you dont have your own agenda, running for mayor.
You must really think you know something the rest of the city watchdogs dont. Ever notice that you are the only one that gos crazy around budget time? Ever notice that the LA Times and Dailynews both praised the mayor for his budget? no of course, they are both towing the mayors line and they are not economists like you so they just dont see past the smoke and mirrors.
you keeping trying to push your agenda walter, you're just like the rest of these politicians
To Walter,
Like all things in life an organization like a city will have at times a surplus amount of land.
Maybe pre-1985 the city used that property to store maintanence equipment that would help maintain the communities around the airport.
Once this property was listed as "unused" LAWA'a police dept made a request to use that property because it was in the midst of an expansion because the airports traffic was expanding as well.
So in less than two years a piece of property went from a old maintenance yard to being used by the airport police - which is still in use today. Because the airport police is in the LAWA budget and due to FAA guidelines, LAWA was forced to pay the City for the land. The City of LA had to show the payment on its budget that year.
Again Walter, I am not claiming you are misreading the budget, but your conclusion of some sort of malfeseance is off-base.
DWP has a lot of other agencies that oversee its activities -- they would all require such an expenditure to be publicly disclosed like in this year's budget.
No harm, no foul, just good ol fashion public disclosure.
The Fly
This post is great. The Fly gives some cold, hard facts about government accounting and Walter replies with "wake up and smell the rip-off!" as if the FAA, Coastal Commission, and State ISO don't matter. The Fly gives more facts; will Walter simply brush those off too?
Vote for Walter Moore. Based on his ignorant criticisms, he'll do real well as Mayor!
It's good to know that the Mayor's staff of 70 reads this blog and, unable to come to grips with the FACTS, is instead trying the old "change the subject" tactic.
Keep it up, amigos. I'm sure the public will find your attempt to change the subject very persuasive. Ditto for your inability to back up your assertions with fact -- as opposed to my identifying the particular document and line items in issue.
But just in case, you may want to consider your career options, because, personally, I think the voters are much smarter than you give them credit for.
And if you do ever happen to get into an econ course, read up on "transfer pricing," and how corporations use subsidiaries and affiliates to cheat governments out of tax dollars by setting up sham transactions at inflated prices.
P.S. If one more moron uses the term "structural deficit" as if it means anything, I'm going to . . . note there's one more moron using the term.
Before YOU become that next moron, please read the following excellent essay, which I wish I had written, explaining why "structural deficit" is another meaningless bit of propaganda, not a legitimate economic term: http://www.illinoispolicyinstitute.org/budget/deficit.php
"Free enterprise and limited government for a better illinois"
Why do I have no intrest in reading propoganda from a place like that...
Walter you stupid fuck, answer the comments with an actual response instead if some bullshit dodge. Like I said YOU are the same as any other politician, you just cant get enough votes to actually win any office.
If you're so proud of your brilliant "analysis," then quit hiding in anonymity. Come out and argue like a man, little Staffer, and start your own site with your own name. Of course you won't, because you're a staffer who doesn't know what he's talking about. You know as much about economics and policy as your boss knows about how to pass the bar exam.
Seriously, I say this with nothing but love: go buy "Economics for Dummies," and have a smart friend read it aloud to you.
P.S. I got more votes than over half the people sitting on City Council. So, sadly for you, you're wrong yet again! But by now you must be used to it, huh?
Walter, you forgot to address the issue of FAA, Coastal Commission, and State ISO regulations as it relates to this transfer and others like it. That's not changing the subject.
Walter fuck you in the eye socket you sorry ass ho. Call me a staffer all you want, is that the best you got? You lame ass retard living in your delusional world, wake the fuck up and enter the real world Mr economist.
you are a joke and you'll never win an elected office because of it.
Wow! Excellent staffer justification of raiding the reserve fund and "selling" assets to the DWP rate-payers! I hope you write Villaraigosa's Cliffs Notes for the debates, amigo!
Walter just got fucking bitch slapped! You suck balls!
Ah, the Villaraigosa staffers have now revealed for all the depth of their intellect and their command of the facts. No rebuttal necessary here.
Walter, we're still waiting for a rebuttal to The Fly's comments, which you have yet to provide. Did you research whether the transfer of funds from DWP to the City was required by state law?
Your credibility is on the line here.
ZUMA DOGG IS GAY?????????
Post a Comment
Subscribe to Post Comments [Atom]
<< Home