If an operation finds itself spending more money than it makes, then the choices are really quite simple: make more or spend less. The City's lack of any real economic development has forced us to spend less, which translates to cutting city services.
The City's current situation is the result of three primary factors:
1. City expenses exceed revenue – The City is rebuilding in its pre-storm footprint with smaller population and tax-base.
2. National Recession - Contrary to local perception and the Nagin administration’s characterization of New Orleans as a “great place to ride out a recession,” we are seeing that the City is not immune to the effects of a national recession.
3. Debt - Various expenses, such as recent legal settlements and FEMA reimbursement costs, are overwhelming the already stretched budget.
One of the shortcomings to surviving in a perpetually depressed economic state is illustrated in our significant dependence on sales tax revenue to financially operate each year. This is largely attributable to the City’s primarily tourism based economy. New Orleans remains vulnerable to variables that deter business and consumer travel such as national recessions, incidents of terrorism, and rising costs resulting from inflation (primarily transportation related commodity prices, namely oil).
In addition, the recession’s effect on the financial markets has forced the city to add substantial amounts of new money, public tax dollars, to the city pension to keep it in compliance with governmental regulations. The City is confronted with the same challenges many private citizens are facing in light of the drop in value of their personal retirement accounts over the past year. Governmental rules dictate that governments use tax dollars to bring account balances up to arbitrarily defined levels to remain in compliance and avoid hefty fines and the potential loss of critical tax advantages. These untimely expenses, as well as the corresponding rising costs of employee health benefits being paid by the city are contributing to a large part of the deficit.
It is also important to note that many, if not all, of the City’s capital projects are being funded by federal disaster money, which has been fully allocated. This means that the current practice of tapping into these funds to meet general operational expenses can not continue.
If at some point in the future city government concludes that it can no longer cut vital city services it will then forced to create more revenue, which translates to raising taxes. Potential tax increases will directly be related to the level of economic growth we are able to achieve locally. This is precisely why economic growth is so vital to our long-term recovery.
Although the message at times seems bleak, there are many things to be optimistic this New Year as we take stock of what we have accomplished together. All we need to do is realize that everything required to ensure a secure and prosperous future in this magnificent city is not only already here, but clearly exemplified in each and every one of the hard working citizens who call New Orleans home.
The inevitable multicultural prosperity that awaits the people of New Orleans requires nothing more than our recognition that we all prosper from a growing economy. It cures everything from our roads to the grassy coast that stands guard over our fragile existence in this place.
Thursday, December 17, 2009
Monday, November 16, 2009
New Orleans’ City Budget: What it Means to You
In light of the projected $68 million 2010 budget deficit, the Lakeview Civic Improvement Association (LCIA) hosted a town hall discussion entitled, “New Orleans’ City Budget: What it Means to You” on Saturday, November 14, to provide insight into our city’s upcoming fiscal and redevelopment challenges. Councilmembers Arnie Fielkow and Shelley Midura and LCIA board members presented at this meeting. As President of the LCIA, I believe that it is our duty to facilitate issue driven discussions to ensure that our community's needs are reflected in the city’s plan for recovery. It continues to be a pleasure to work with the city’s leadership and lend my perspective as a CERTIFIED FINANCIAL PLANNER™ Practitioner. as we work together to reach economic stability. Learn more about Saturday’s meeting and New Orleans' recovery challenges by reading the article published by the Times-Picayune below.
Red tape choking N.O., citizens lament
Lakeview addresses city's troubles
Sunday, November 15, 2009
By Katy Reckdahl
Times Picayune Staff writer
Community leaders in Lake-view maintain house-by-house data on the status of blight, demolition and rebuilding efforts in the neighborhood. They keep track of every new business that opens. And they have the ear of public officials, several of whom showed up early Saturday morning for a meeting of the Lakeview Civic Improvement Association.
But four years after a wall of water virtually obliterated their section of New Orleans, much remains to be done. And it seems every bit of progress is hard-won, especially when it involves the City Hall bureaucracy.
City Councilwoman Shelley Midura, Councilman Arnie Fielkow and state Sen. Ed Murray, who is running for mayor, met Saturday with about 50 residents to discuss the city's projected budget shortfall, the future of the Recreation Department and the blight that still chokes many Lakeview properties despite efforts to force owners to clean up their property.
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Brad Fortier, the association's president, implored attendees to take a metaphorical battering ram to what he called "this castle of dysfunction that has been the city of New Orleans," though fighting the system continues to prove challenging.
As has been common citywide since Hurricane Katrina, Lakeview residents are still trying to rebuild from the grass roots.
Fortier's 15-member board of directors on Saturday filled three tables in the St. Dominic School gymnasium. The group's Web site lists roughly 100 volunteers who make up a dozen or so committees. Still others lead neighborhood business groups, an outdoor market and "Holidays on Harrison," an annual gathering complete with Santa and trolley rides.
Some signs of progress are visible. Construction of a new Edward Hynes Charter School and a new public library is slated to begin in January. Harrison Avenue, the area's main commercial drag, is being repaved. Even the gaping holes in the post office driveway are almost history, pending a final cement lip.
Still, the city last month held 200 blight hearings involving Lakeview properties, all of them observed by someone from the civic group.
And although neighbors reported that demolitions have finally begun in earnest, only 36 of the roughly 600 condemned Lakeview properties sold to the Road Home program were torn down last month. Another 172 are scheduled to be torn down within next few months. Fully half of them have been labeled "high priority" by neighbors, said Pamela Danner of CDM Inc., a city demolition vendor.
The remaining sites are waiting for demolition approval from the New Orleans Redevelopment Authority, which receives Road Home properties in New Orleans.
The civic association has been working closely with NORA and hopes to sell all of its Lakeview properties within a year. But even though the group has a roster of 165 interested buyers, it won't get a list of available properties from NORA until the end of the year, said Todd Wallace, who oversees a neighborhood committee devoted to the issue.
The delay offers another example of how residents' efforts can get mired in bureaucracy. Still, neighbors try to focus on the positive.
The Greater New Orleans Community Data Center reported in June that about half of all pre-Katrina households in Lakeview were again actively receiving mail.
And Wallace, for one, said he is hopeful about the next round of NORA homes to be sold.
"Maybe we'll get neighbors back from the north shore," he said.
Katy Reckdahl can be reached at kreckdahl@timespicayune.com or 504.826.3396.
Red tape choking N.O., citizens lament
Lakeview addresses city's troubles
Sunday, November 15, 2009
By Katy Reckdahl
Times Picayune Staff writer
Community leaders in Lake-view maintain house-by-house data on the status of blight, demolition and rebuilding efforts in the neighborhood. They keep track of every new business that opens. And they have the ear of public officials, several of whom showed up early Saturday morning for a meeting of the Lakeview Civic Improvement Association.
But four years after a wall of water virtually obliterated their section of New Orleans, much remains to be done. And it seems every bit of progress is hard-won, especially when it involves the City Hall bureaucracy.
City Councilwoman Shelley Midura, Councilman Arnie Fielkow and state Sen. Ed Murray, who is running for mayor, met Saturday with about 50 residents to discuss the city's projected budget shortfall, the future of the Recreation Department and the blight that still chokes many Lakeview properties despite efforts to force owners to clean up their property.
Advertisement
Brad Fortier, the association's president, implored attendees to take a metaphorical battering ram to what he called "this castle of dysfunction that has been the city of New Orleans," though fighting the system continues to prove challenging.
As has been common citywide since Hurricane Katrina, Lakeview residents are still trying to rebuild from the grass roots.
Fortier's 15-member board of directors on Saturday filled three tables in the St. Dominic School gymnasium. The group's Web site lists roughly 100 volunteers who make up a dozen or so committees. Still others lead neighborhood business groups, an outdoor market and "Holidays on Harrison," an annual gathering complete with Santa and trolley rides.
Some signs of progress are visible. Construction of a new Edward Hynes Charter School and a new public library is slated to begin in January. Harrison Avenue, the area's main commercial drag, is being repaved. Even the gaping holes in the post office driveway are almost history, pending a final cement lip.
Still, the city last month held 200 blight hearings involving Lakeview properties, all of them observed by someone from the civic group.
And although neighbors reported that demolitions have finally begun in earnest, only 36 of the roughly 600 condemned Lakeview properties sold to the Road Home program were torn down last month. Another 172 are scheduled to be torn down within next few months. Fully half of them have been labeled "high priority" by neighbors, said Pamela Danner of CDM Inc., a city demolition vendor.
The remaining sites are waiting for demolition approval from the New Orleans Redevelopment Authority, which receives Road Home properties in New Orleans.
The civic association has been working closely with NORA and hopes to sell all of its Lakeview properties within a year. But even though the group has a roster of 165 interested buyers, it won't get a list of available properties from NORA until the end of the year, said Todd Wallace, who oversees a neighborhood committee devoted to the issue.
The delay offers another example of how residents' efforts can get mired in bureaucracy. Still, neighbors try to focus on the positive.
The Greater New Orleans Community Data Center reported in June that about half of all pre-Katrina households in Lakeview were again actively receiving mail.
And Wallace, for one, said he is hopeful about the next round of NORA homes to be sold.
"Maybe we'll get neighbors back from the north shore," he said.
Katy Reckdahl can be reached at kreckdahl@timespicayune.com or 504.826.3396.
Tuesday, November 3, 2009
Champion of personal freedom: a letter to the editor
As New Orleans moves towards the 2010 mayoral race, rebuilding a sustainable community remains the top priority. In light of this, it is important that the community understands the costs associated with policy decisions affecting the city’s rebirth. Read more in my letter to the New Orleans Times Picayune editor.
Champion of personal freedom: a letter to the editor
By Letters to the Editor
November 03, 2009, 1:20AM
Should freedom and liberty be regulated by central planners in government?
"No way," say most level-headed Americans. Yet that is exactly the opposite opinion shared by many people of New Orleans, who likely consider themselves conservatives.
New Orleans Mayor Ray Nagin's decision to allow the city to rebuild in its pre-storm footprint serves as one of those rare examples where a liberal politician seeking self-preservation, i.e. re-election, actually promoted the most fundamental of traditional conservative values.
I believe allowing residents to rebuild unregulated or steered by central planning government was the ultimate example of the empowering dynamic of personal liberty. It is up to the people now to collectively contemplate a way in which to pay the costs associated with those decisions, not to second-guess the decision itself.
Liberty and freedom are never free, and the people should embrace the minor costs they impose. They are both as vital to our quality of life as the oxygen in the air that we breathe.
Brad Fortier
Metairie
Champion of personal freedom: a letter to the editor
By Letters to the Editor
November 03, 2009, 1:20AM
Should freedom and liberty be regulated by central planners in government?
"No way," say most level-headed Americans. Yet that is exactly the opposite opinion shared by many people of New Orleans, who likely consider themselves conservatives.
New Orleans Mayor Ray Nagin's decision to allow the city to rebuild in its pre-storm footprint serves as one of those rare examples where a liberal politician seeking self-preservation, i.e. re-election, actually promoted the most fundamental of traditional conservative values.
I believe allowing residents to rebuild unregulated or steered by central planning government was the ultimate example of the empowering dynamic of personal liberty. It is up to the people now to collectively contemplate a way in which to pay the costs associated with those decisions, not to second-guess the decision itself.
Liberty and freedom are never free, and the people should embrace the minor costs they impose. They are both as vital to our quality of life as the oxygen in the air that we breathe.
Brad Fortier
Metairie
Thursday, October 22, 2009
Back to the Basics
The recent announcement that New Orleans will be facing a 68 million dollar budget deficit in 2010 strongly indicates a need to return to sound financial planning that I advise my clients to practice everyday, such as budgeting, cutting expenses and making wise investments to avoid monetary shortfalls.
Adherence to these basic principles is just the beginning, though. No matter how many cost-saving and fee-enhancing initiatives are implemented in the upcoming year, City Hall must demonstrate a high level of financial competency and management in order to restore public confidence. Despite the fiscal challenges that lie ahead, an accessible budget approved by both branches of city government that provides a clear picture of how much money the city plans to spend, what it will be spent on, and how this spending will affect the deficit for 2010 is essential.
Brad Fortier
New Orleans
Adherence to these basic principles is just the beginning, though. No matter how many cost-saving and fee-enhancing initiatives are implemented in the upcoming year, City Hall must demonstrate a high level of financial competency and management in order to restore public confidence. Despite the fiscal challenges that lie ahead, an accessible budget approved by both branches of city government that provides a clear picture of how much money the city plans to spend, what it will be spent on, and how this spending will affect the deficit for 2010 is essential.
Brad Fortier
New Orleans
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