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As reported in the Chronicle.
Depending on the source, it is or isn’t balanced
By BRADLEY OLSON
Copyright 2009 Houston Chronicle
May 30, 2009, 7:38PM
Does the city of Houston have a balanced budget?
Like so many things in politics, it depends on whom you ask.
For wealthy businessman Bill King or City Councilwoman Pam Holm, the answer is no, since Mayor Bill White’s administration is planning to spend about $50 million more from its general fund in fiscal 2010 than it will take in from taxes and other revenue streams.
To Bob Lemer, conservative tax accountant and longtime critic of City Hall, the answer is an emphatic no. Lemer said a 2008 audit of Houston’s finances over the past five years shows the city in the red to the tune of $1.5 billion if it were to do its books like a private company.
And if you see things like the mayor, Finance Director Michelle Mitchell and most City Council members do, the answer is a strong yes in the sense that the city is not spending money it does not have.
Who is right? All of them, each in their own particular way, said City Controller Annise Parker.
“We have used borrowed money to meet some of our current obligations, which is, I think, fiscally unwise,” Parker said. “But while Mr. King and Mr. Lemer are out waving the red flag, I just have the yellow flag of caution up.”
Wild card: economy
Questions surrounding the city’s financial strength will only intensify as hearings over the mayor’s $4 billion fiscal 2010 spending plan continue through next month. Some, including Parker, believe the budget could leave Houston in a precarious position if the economy worsens or calamity hits.
And although the rhetoric has grown thick on the subject of just how balanced the budget really is, the distinct points of view on the matter could reshape the spending plan in unexpected ways.
In the course of his administration, White said he consistently has made sure the city built up its “fund balance” — governmentspeak for reserve or savings — to pay for large expenses and to improve the city’s bond rating. The latter is a key factor in holding down the cost of borrowing.
At the end of this fiscal year on June 30, the city’s reserves are projected at $220 million. Under White’s proposed budget, fiscal 2010 will end with $171 million in unspent funds, meaning the city will have drawn down its reserves by $49 million.
Careful about borrowing
White said the city built up the balance with the expectation of spending it on certain big expenditures, such as raising the pay of firefighters. That means the budget is balanced, he said, despite the fact that expenses will outpace revenues by the $49 million.
“I know accounting, and I know what operating cash flows are, and we increased our cash by collecting more money than we spent,” White said. “And we do not borrow, unlike the federal government, to pay for operations. We only borrow money for long-lifed investments or to repay debt.”
Although the mayor is right that the city has not borrowed to pay for operating expenses, Parker said, it has used debt to pay for obligations that in previous years would have been paid through the tax- and fee-supported general fund, the city’s main operating budget. In other words, the use of debt for certain expenses freed up money for the city to spend on operations.
The debt, much of it the result of borrowing to meet pension obligations, also is a primary reason the city has built up its reserves, the city controller said.
“Part of the reason we have healthy fund balances is that we borrowed the money instead of tapping the fund balance,” Parker said. “We used pension obligation bonds to meet current (pension) obligations.”
For some, the $49 million dip into the reserves is enough to declare the budget unbalanced.
“How do you justify expenditures being greater than revenue?” Councilwoman Holmasked. “How is that being fiscally responsible?”
Cost of building boom
For Lemer, the author of a 2004 ballot proposal to limit city spending, the $49 million question is moot. He argues that the city racked up a cumulative deficit of $1.5 billion from 2004 until 2008.
“That is absolutely frightening,” he said. According to his research, the main driver of that has been borrowing to keep up with costs for the city’s pension debt.
But White said that when the city has borrowed to pay pension expenses, it has reduced other borrowing accordingly, so its overall debt levels have remained low relative to its assets.
“The ratio of debt is down from where it was in the early ’90s, and it is very competitive with other cities,” the mayor said.
Parker said the city’s spending has exceeded revenues by $1.5 billion from 2004 to 2008 because Houston has been on a building boom since the administration of Mayor Bob Lanier, borrowing to pay for new infrastructure that helps fuel growth.
“We have invested back in the city of Houston,” she said. “Our long-term debt has gone up sharply, but our infrastructure assets have gone up in valuation as well. We’re a growing city, and we’re trying to meet the needs of that growth.”
Sunday, May 31, 2009
Thursday, May 28, 2009
Redistricting lawsuit
As reported in the Chronicle's blog:
Mayor Bill White on the dismissal of the redistricting lawsuit against the city:
"In order to do what is right for all voters, I sought the advice of counsel who recommended we use the best demographic information obtained from the 2010 census," White said in a statement. "City officials have fielded a lot of criticism; but, Judge Lake's ruling confirms that the decision to wait until we get the best available data is most fair to voters."
Read Judge Sim Lake's full decision here, which has a lengthy, although quite interesting, history of the complex voting rights issues that led to the present City Council composition. Read the Mayor's Office release after the jump.
FOR IMMEDIATE RELEASE
May 27, 2009
A Federal Court Rules in Favor of the City of Houston on the Issue of
When to Expand City Council
The City of Houston has prevailed in a federal lawsuit over when officials should begin the process to expand City Council.
A 1979 amendment to the City Charter requires the number of council seats to be increased from fourteen to sixteen, when the population of Houston reaches 2.1 million.
City officials acknowledge Houston's population has reached the threshold to begin the process. According to City Attorney Arturo Michel, numerous court decisions confirm that only census data, produced once a decade, next due in April, 2011, provides the detailed information for specific geographic areas by race, ethnicity, voting age population, etc., needed to change council district boundaries in a way that complies with federal statutory and constitutional law.
"In order to do what is right for all voters, I sought the advice of counsel who recommended we use the best demographic information obtained from the 2010 census," said Mayor White. "City officials have fielded a lot of criticism; but, Judge Lake's ruling confirms that the decision to wait until we get the best available data is most fair to voters."
Opponents claimed that by waiting, the City of Houston was diluting the voting strength of minority voters.
Federal Judge Sim Lake dismissed the case after determining the plaintiffs failed to prove their claim. In the ruling, Judge Lake states, "The voters' approval of the Council-expanding provision in the Charter in no way indicates that a fourteen-member Council somehow becomes dilutive of minority votes...."
Judge Lake's written ruling went on to state, "Because the plaintiffs have failed to identify, based on an objective and workable standard, a benchmark against which to test the challenged voting practice, they cannot maintain (their claim)."
Mayor Bill White on the dismissal of the redistricting lawsuit against the city:
"In order to do what is right for all voters, I sought the advice of counsel who recommended we use the best demographic information obtained from the 2010 census," White said in a statement. "City officials have fielded a lot of criticism; but, Judge Lake's ruling confirms that the decision to wait until we get the best available data is most fair to voters."
Read Judge Sim Lake's full decision here, which has a lengthy, although quite interesting, history of the complex voting rights issues that led to the present City Council composition. Read the Mayor's Office release after the jump.
FOR IMMEDIATE RELEASE
May 27, 2009
A Federal Court Rules in Favor of the City of Houston on the Issue of
When to Expand City Council
The City of Houston has prevailed in a federal lawsuit over when officials should begin the process to expand City Council.
A 1979 amendment to the City Charter requires the number of council seats to be increased from fourteen to sixteen, when the population of Houston reaches 2.1 million.
City officials acknowledge Houston's population has reached the threshold to begin the process. According to City Attorney Arturo Michel, numerous court decisions confirm that only census data, produced once a decade, next due in April, 2011, provides the detailed information for specific geographic areas by race, ethnicity, voting age population, etc., needed to change council district boundaries in a way that complies with federal statutory and constitutional law.
"In order to do what is right for all voters, I sought the advice of counsel who recommended we use the best demographic information obtained from the 2010 census," said Mayor White. "City officials have fielded a lot of criticism; but, Judge Lake's ruling confirms that the decision to wait until we get the best available data is most fair to voters."
Opponents claimed that by waiting, the City of Houston was diluting the voting strength of minority voters.
Federal Judge Sim Lake dismissed the case after determining the plaintiffs failed to prove their claim. In the ruling, Judge Lake states, "The voters' approval of the Council-expanding provision in the Charter in no way indicates that a fourteen-member Council somehow becomes dilutive of minority votes...."
Judge Lake's written ruling went on to state, "Because the plaintiffs have failed to identify, based on an objective and workable standard, a benchmark against which to test the challenged voting practice, they cannot maintain (their claim)."
Sunday, May 10, 2009
District H contest will decide sheriff's successor
As reported in the Chronicle
By BRADLEY OLSON
Copyright 2009 Houston Chronicle
May 10, 2009, 1:10AM
Houston Police Officer Ed Gonzalez and former City Council aide Maverick Welsh will square off in a runoff to replace former City Councilman Adrian Garcia, who resigned his District H City Council seat after being elected Harris County sheriff in November.
With all 13 precincts reporting and nearly 4,200 ballots cast in a district of more than 93,000 registered voters, Gonzalez had 31.4 percent of the vote and Welsh had 26.9 percent.
They were followed by attorney Yolanda Navarro Flores, HPD officer Rick Rodriguez and pastor Larry Williams. Lupe Garcia, Gonzalo Camacho, Hugo Mojica and James Partsch-Galvan took in less than 3 percent each.
The strikingly low turnout did not surprise political handicappers or any of the campaigns, many of which knocked on doors and placed volunteers at the district’s polling places to do last-minute electioneering. Their efforts had a slightly blunted impact, as nearly half of the votes counted came from absentee and early voting.
Gonzalez had a huge lead in the early totals, coming in at least 10 points ahead of the nearest candidate.
Both campaigns said they plan to continue frenzied efforts to reach voters for another month, when the runoff most likely will be scheduled. A City Council vote will be required to set the exact date.
“I feel very positive right now,” Gonzalez said as he watched the totals come in at The Manor in the Heights. “It’s a testament to the hard work of a lot of our volunteers.”
He estimated that he knocked on more than 1,000 doors while campaigning.
“We had a really good grass-roots effort and really took it out to the community and heard their concerns and issues and I think it paid off,” he said.
Welsh was also optimistic.
“We’re going to keep connecting with as many voters as we can, going door to door and listening and talking about change,” he said. “People are tired of business as usual and they want a new approach, and I totally represent that.”
He also spoke of highly organized block-walking and phone-banking efforts conducted by volunteers for his campaign as a decisive factor in his success.
“We’re a grass-roots campaign and as you go through all the neighborhoods in (District H), you can see from the signs that people are excited to support me,” he said. “I just think it’s fantastic.”
In sparse numbers, voters fanned out on Saturday across the sprawling district, which includes the Heights, much of the old Second Ward just east of downtown and a wide swath that extends midway between the inner and outer loops around Interstate 45.
Several voters said they personally knew or had met the candidate they ultimately voted for, illustrating the heightened importance of shoe-leather campaigning in such a short contest with so many candidates.
Robert French, 90, said he received a visit from Gonzalez Saturday morning that tipped the scale in his favor.
"He’s the first man that ever came to my door and asked for my vote," French said after casting his ballot at Roosevelt Elementary off Fulton near Interstate 45. "He was a very nice fella, and after he came I was glad that I hadn’t been over here yet. I think he’ll do a good job."
Bardo Martinez, who voted in the same location, said he chose Flores, who has been an acquaintance "since the Little League days" and who is known to have done well in other jobs, such as her current post on the Houston Community College Board of Trustees.
Voters stressed the impact of their personal interaction with the candidates.
Steven Ponder, 57, said he was impressed with how Welsh handled himself in a few instances when they had met. And although city elections are non-partisan, he said, he knew Welsh is a Democrat, and that was another important factor in his vote.
"I thought he seemed very inclusive in his views, very articulate and intelligent," said Ponder, who voted at Hogg Middle School in the Heights. "I liked his demeanor, the way he handled himself.’’
Meanwhile, in Baytown, Mayor Stephen DonCarlos was re-elected with more than 70 percent of the vote, defeating three other candidates, including Lee High School senior Ali Cuellar, 18.
Baytown also shot down a measure that would have allowed smoking in stand-alone bars.
Baytown's voters approved the existing ordinance, which prohibits lighting up in virtually all public places, in November 2006. A vote to repeal the ordinance was rejected in May 2007.
By BRADLEY OLSON
Copyright 2009 Houston Chronicle
May 10, 2009, 1:10AM
Houston Police Officer Ed Gonzalez and former City Council aide Maverick Welsh will square off in a runoff to replace former City Councilman Adrian Garcia, who resigned his District H City Council seat after being elected Harris County sheriff in November.
With all 13 precincts reporting and nearly 4,200 ballots cast in a district of more than 93,000 registered voters, Gonzalez had 31.4 percent of the vote and Welsh had 26.9 percent.
They were followed by attorney Yolanda Navarro Flores, HPD officer Rick Rodriguez and pastor Larry Williams. Lupe Garcia, Gonzalo Camacho, Hugo Mojica and James Partsch-Galvan took in less than 3 percent each.
The strikingly low turnout did not surprise political handicappers or any of the campaigns, many of which knocked on doors and placed volunteers at the district’s polling places to do last-minute electioneering. Their efforts had a slightly blunted impact, as nearly half of the votes counted came from absentee and early voting.
Gonzalez had a huge lead in the early totals, coming in at least 10 points ahead of the nearest candidate.
Both campaigns said they plan to continue frenzied efforts to reach voters for another month, when the runoff most likely will be scheduled. A City Council vote will be required to set the exact date.
“I feel very positive right now,” Gonzalez said as he watched the totals come in at The Manor in the Heights. “It’s a testament to the hard work of a lot of our volunteers.”
He estimated that he knocked on more than 1,000 doors while campaigning.
“We had a really good grass-roots effort and really took it out to the community and heard their concerns and issues and I think it paid off,” he said.
Welsh was also optimistic.
“We’re going to keep connecting with as many voters as we can, going door to door and listening and talking about change,” he said. “People are tired of business as usual and they want a new approach, and I totally represent that.”
He also spoke of highly organized block-walking and phone-banking efforts conducted by volunteers for his campaign as a decisive factor in his success.
“We’re a grass-roots campaign and as you go through all the neighborhoods in (District H), you can see from the signs that people are excited to support me,” he said. “I just think it’s fantastic.”
In sparse numbers, voters fanned out on Saturday across the sprawling district, which includes the Heights, much of the old Second Ward just east of downtown and a wide swath that extends midway between the inner and outer loops around Interstate 45.
Several voters said they personally knew or had met the candidate they ultimately voted for, illustrating the heightened importance of shoe-leather campaigning in such a short contest with so many candidates.
Robert French, 90, said he received a visit from Gonzalez Saturday morning that tipped the scale in his favor.
"He’s the first man that ever came to my door and asked for my vote," French said after casting his ballot at Roosevelt Elementary off Fulton near Interstate 45. "He was a very nice fella, and after he came I was glad that I hadn’t been over here yet. I think he’ll do a good job."
Bardo Martinez, who voted in the same location, said he chose Flores, who has been an acquaintance "since the Little League days" and who is known to have done well in other jobs, such as her current post on the Houston Community College Board of Trustees.
Voters stressed the impact of their personal interaction with the candidates.
Steven Ponder, 57, said he was impressed with how Welsh handled himself in a few instances when they had met. And although city elections are non-partisan, he said, he knew Welsh is a Democrat, and that was another important factor in his vote.
"I thought he seemed very inclusive in his views, very articulate and intelligent," said Ponder, who voted at Hogg Middle School in the Heights. "I liked his demeanor, the way he handled himself.’’
Meanwhile, in Baytown, Mayor Stephen DonCarlos was re-elected with more than 70 percent of the vote, defeating three other candidates, including Lee High School senior Ali Cuellar, 18.
Baytown also shot down a measure that would have allowed smoking in stand-alone bars.
Baytown's voters approved the existing ordinance, which prohibits lighting up in virtually all public places, in November 2006. A vote to repeal the ordinance was rejected in May 2007.
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