fresno elections 2008

A correction must be negotiated between the Board of Supervisors and the Retirement Board.

The Fresno County Retirees’ Association (FCERA) does indeed enjoy the highest benefits in the state of California. At the same time, Fresno County ranks 50th in per capita median income in the state. This is an anomaly. Retirement system costs are out of control compared to contributions because the employer (Fresno County) has not paid its fair share. The average return on money invested in the market has been 5% over the past 100 years. Yet the retirement board is making payouts on an “estimated” investment return of 8.2% and the Board of Supervisors tied its contributions to this fantasy rate of 8.2%. High “estimated” rates translate to lower employer contributions, while lower “estimated” rates require higher contributions. The County chose the former and balanced its budgets on the backs of the 7,000 employees and 4,000 retirees.

The huge double digit multi-year salary increases the current Board gave to the rank and file, under the guise of employee retention, is a plain and simple pay back to the unions for their support. As an accountant, I consider this a dereliction of duty which will eventually translate into layoffs, program cuts and service reductions. There is some possibility of reduced tax returns from the slowing housing market, plus future property tax reversals, but the CAO suggested tax receipts from the state had grown, so what is left? Salaries, position expansions, and added programs, all unfunded thanks to an out of control Board.

(1) Improve the infrastructure to generate more businesses that pay taxes, (2) Identify and eliminate waste and mismanagement in county operations.
(3) I do not approve any tax until the budget process is straightened out.

We must redirect our priorities from an economy based on cheap housing and rampant development to an economy based on environmentally friendly businesses that pay taxes and provide jobs. In the eighties and nineties, Fresno County, debt free and flush with reserves, was the envy among its sister counties in the state of California. Today, the tenth largest county in the state, micromanaged and badly mismanaged is in financial straits, in the bottom of the financial barrel, keeping company with San Diego, Orange and Los Angeles. As I said earlier every department must undergo a cost efficiency audit by an outside consulting firm. That will identify the departments with problems, and will uncover waste and mismanagement, ever present in government. I believe that there will be no need for a public safety tax if we apply this time tested fiscal management procedure.

As an experienced accountant, I will approach budget cuts with caution, fully aware of the political responsibility that comes with the position

First of all we should have never come to this point. But we forgot to save for a rainy day and kept spending like a drunken sailor, and now that the rainy day is here we ask the public to pay for the Supervisors’ mistakes. This is so disingenuous it is worth of an academy award. According to one department head, who asked to remain anonymous, the majority on this board has not “met an expense they did not like”. My campaign sign reads: “Stop Deficits and Save Jobs”. Being that we are in a severe deficit position—self inflicted with the multiyear budget busting double digit salary increases—we have to again look within and put our house in order before we ask the public for yet another bailout. Stop the micromanaging and manage by exception. Commission an outside consultant to conduct cost efficiency audits and take drastic austerity measures. Freeze any future salary increases. The Board of Supervisors should set the example by voluntarily cutting their salary to that of the City Council members. We may have to do with less and must understand that we cannot do everything for everybody. Our redirected priorities should be to use our resources efficiently so that at least we will be able to do something for everybody. This is my approach to dealing with the inevitable budget cuts. Hey, people have to wake up. It may come to laying off people. And guess what, in a county with a median per capita income of $25,000 (Fresno County’s 6/30/07 annual report), there are qualified people out there that are willing to work for less than what we presently pay.

I don’t agree because we are out of money and have violated our legal debt limit. Additional debt will mean added violation of the state statutes.

The most pressing issue today is the ever climbing deficit. The main focus of my campaign is to make this fiscal wake up call to Fresno County and not only District #2. We have mortgaged the house to pay for operating expenses. This is wrong. Prudent people get a mortgage to build brick and mortar, an asset that will be used, produce returns and that will eventually allow you to borrow on it again. And Yes a jail is a good example of a brick and mortar asset. Until we resolve this deficit of historic proportions, I don’t think it is prudent to generate more debt. We should follow the example of other counties (such as Maricopa County in Arizona) that have been able to efficiently address the cost of operating their prison systems.

Based on the very limited information currently available to me, I rank the morgue as number one priority, food and safety second and offices third.

Unfortunately, non-incumbent candidates cannot make intelligent priority decisions because the county makes it a habit to not release up-to-date financial data to the public. When in financial crisis, management needs daily information to see the direction it is headed. One would expect the county has such information, but the public and the non-incumbent candidates do not. The way things are playing out, I anticipate such information will be released to the public in March of 2009, long after the June 3, 2008 election and the swearing-in ceremony. As an accountant, I make priority decisions based on sound financial data. Unless I am provided with that data, I cannot give unequivocal answers to these questions. I don’t know how deeper in deficit we will be at the close of the current fiscal year. In fact, prioritizing spending may be academic—for all we know, the County may already be insolvent.

Until we have the actual budget information from the state, I propose to continue the program.

Education is the foundation for future jobs.

Again we have our priorities sort of screwed up. We, Fresno County, encourage housing development which gobbles up valuable farm land and worsens air pollution. And now we have fallen under the spell of the subprime witch. Jobs can only be produced by investment in productive assets. We need assembly plants, packaging plants, electronic businesses. Rather than having developers knocking at our Hall of Records doors, I would like to see the likes of Bill Gates and Larry Ellison coming to us to discuss new electronic plants for Fresno County. But we will not get the likes of Gates and Ellison, unless we address the dreary condition of our educational system.

As an accountant, I am for it if we can find the money.

First, we have to address the awful deficits that are sapping our children’s future and threatening their well being. Bestowing huge debts unto the new generation, has been characterized by some as “fiscal child abuse”. Parents want to leave something of substance to their offspring. We chose deficits. It has been estimated that for our children to enjoy the same standard of living as we do and afford the same safety, their taxes have to be doubled (The coming generational storm, MIT Press 2003).

Yes. But all these plans are being destroyed by the lack of fiscal responsibility by a Board that embraces fiscal fantasy and tooth-fairy budgets.

Yes I do—this is indeed, the reason for my candidacy.

The county has accumulated a deficit of $387 million, an unfunded liability of $539 million and a long term debt of $935 million–as of 6/30/07. Do I think the county has too much debt? You bet I do! Fresno County has far exceeded its legislated legal debt limit. Since we lost some of the fiscal stalwarts on the Board, such as the late Deran Koligian, and Sharon Levy, the county, over the past four years stands in violation of state statutes (see page 124 of Fresno County’s latest CAFR). We have borrowed in excess of our legal limit. If we want to be a law abiding county, we cannot legally add another dollar to the current debt limit. At a recent public meeting, a board member was quoted saying: “The county is BROKE” and another one “we are balancing the budget with FAKE money”. It is very hard to argue with such profound and heart felt statements when they come form the mouths of sitting board members.

The County does not need to approve all developments.

Our neighboring counties have successfully withstood pressure from developers. Sprawling housing, cheap and expensive, contributes to bad air and adds to the demand for services and water. Someone has to pay for this. At this time neither the county nor the city–with a deficit of $66 million dollars–can afford to pay.