Friday, March 9, 2012

Is insolvency coming soon to a town (city, county, state) near you?

It can't happen here? That's what Suffolk County, New York used to think!

Wealthy enclaves and some of the greatest beaches in the world are just not enough!!

The sad fact is that the $500 million budget deficit hitting this county can happen anywhere!

From an email I received (H/T MG):

- Greece will default?

- California is broke?

- Spain and Portugal are next?

No way!!!

Just look into a mirror, Long Long!

IT'S RIGHT HERE. -- NOW!!!!

My Democratic friends tell me that huge deficits and downgrades of credit ratings are unimportant!!

Tax and spend our way out!! That's how you fix it!!

Or, better yet, Just wait, and when our economy returns to a 5, 6, 7 percent GDP growth, everything will be just fine! (I'll be long gone or in a nursing home when that happens!!!)

Well, go tell that to Suffolk County!!! (They are just following Nassau's example!!)

They ARE broke NOW!!

The new Democratic County Executive, Steve Bellone announced on Tuesday, that it is MUCH worse than anticipated!!

1- Suffolk ran a $ 33 million dollar deficit last year!! (1% of its budget!!).

2-They realistically now estimate a $148 million dollar projected deficit in 2012!! (70% higher than expected!

3- in 2013, the projected deficit is $ 349 million!!

A multiyear total of $530 million dollars!!! WOW!!

4- the implications of December’s downgrade in its short-term credit rating ARE really devastating!

5- they may have to surrender control to the State!!

6- each department will have to be trimmed by 10% (I'll believe that when I see it!!)

7- hundreds of county employees may be fired! (I already hear the municipal worker's union!!)

8- the county's public employee pension expenses are expected to increase to $192 million next year! That is DOUBLE last year's cost!! (The union's lawyers are warming up in the bullpen!!)

Surprised?? This is not Europe!! It's Long Island!! It's THE HAMPTONS, Long Island's crown jewel!!

Let's hope that County Exec. Bellone will NOT revert to the typical Democratic answers:

1- raise taxes

2- more borrowing or

3- run to New York State or Washington for "free help”!!!

I hope that he can straighten this mess out WITHOUT these typical nearsighted, short-term remedies!!

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