http://progress.montgomeryadvertiser.com/article/20110219/PROGRESS/102180350
Staggering debt load biggest factor; proposed budget of $33.6M includes sales tax increase, sewer surcharge, day-a-month furloughs, layoffs.
They are so far in debt that they are looking at tax increases and other radical solutions to try to balance the budget. Seems to me they should cut back some on the spending and abandon plans to raise taxes in this economic climate. These new taxes won't do the city any good, from an economic standpoint.
So, with all the cities going bankrupt across the nation, don't forget our very own Prattville, city of the declining standard of living and rising taxes.
Only to pull the curtain back and show Part II of the Great Crash...when the housing market crash started up two years ago...it just was the starter.
ReplyDeleteImagine a case where town after town owed far more than they'd ever be able to pay (based on incompetence and fraud by elected members). Then imagine counties having done the same thing. Then imagine a dozen states in similar circumstances.
Bonds and bank loans are out there and held by various mutual funds and retirement pension groups (especially school teacher and public worker groups).
By the end of this year...congress will have to write a law that enables groups like these to declare some bankruptcy situation and be able to walk away...like they did with homeowners.
Crash one was just practice....this one will be fairly severe.
And the town idiot who suggested that they spend $500k on new police hardware for the police force of sixteen folks? You might want to ask him why that was ever necessary? And the same for the folks who wanted to spend $700k on a new walking trail.
I think "fairly severe" is an understatement. And it is caused by the "accepted wisdom" that big government is good.
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