Mason pushing for state meeting

6/5/2008 Press release:

Received the following note from Beth Mason’s camp this afternoon. As a reminder, all council members are openly invited to share their messages with the Hoboken411 readers.

Wants forensic accounting

beth-mason.jpg“Following a recommendation of the city council last night, Mason is working today to arrange a meeting or conference call among the City Council and the State’s Department of Community Affairs, which oversees municipal budgets.

Mason said the council and the public needs a clear understanding of what exactly what the state can do and is willing to do to help the city correct its budget problems.

“We need to thoroughly understand what the state can and cannot do and what kind of decisions the council and the administration have to make in order to rectify our budget problems,” said Mason.

“There is significant distrust right now between the city council and the mayor over budget figures, And there is also concern about the accuracy of the administration’s statements regard the scope of the state’s intervention,” said Mason.

Mason is insistent however that the state’s intervention and any subsequent compromise by the city council on the budget, is not a one shot option. She says the state and the council must consider not just the 2008 budget, but the 2009 budget year, which begins July 1.

“The options on the table fail to address the core financial problems: excessive spending and borrowing. We need to start working on the 2009 budget at the same time as we address the 2008 problems.”

Mason has been asking the administration for weeks for 2009 budget figures and has floated the possibility of bringing in a forensic accounting team to help the council get a better picture of the city’s spending and borrowing problems.

“There is a limit to the guidance the state can provide for us,” said Mason. “The state is not going to undo years of bad financial decisions. The state may not have the resources to dig deep into the city’s financial problems.

“The city council needs to know where he state help ends and what we have to do then to pick up the pieces and move forward,” added the councilwoman.

RESISTANT TO BORROWING

Mason has resisted offers to extend the city’s borrowing to cover the 2008 budget gap to level out the city’s inevitable tax increase over five quarters.

“Borrowing more money now to plug a budget hole does nothing to solve the looming financial crisis that starts all over again in the 2009 budget,” said Mason.

“It would be deceptive to taxpayers if the council and the administration engaged in a borrowing scheme and then failed to tackle the structural problems that – left unaddressed – will lead to, not a one time tax increase, but a bigger tax increase down the road,” says Mason.

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25 Comments on "Mason pushing for state meeting"


hobojoe
Member
8 years 3 months ago

Along these lines: if you had $20-25 million at your disposal, sitting in the bank, earmarked solely for uses related to parking- do you think you could come up with a little something to alleviate the parking situation in town? Perhaps a new facility or two?

Well, that’s about how much money the Roberts Administration has usurped from the Parking Authority/Utility just to pay general operating expenses and plug his perennial budget gaps.

Don’t wonder why nothing seems to be done about parking. The money’s already been spent.

Red Haven
Member
Red Haven
8 years 3 months ago

That only makes sense HH. However, when Roberts took control over the Hoboken Parking Authority (and it’s millions in the bank) the new Hoboken Parking Utility’s books were still structured to remain a somewhat separate entity. That’s why it didn’t get renamed “Department of Parking Services” like the existing “Department of Environmental Services” and “Department of Human Services.”

The HPU does book it’s own revenue and expenses on it’s own books, only to then transfer all it’s excess revenue (or “profit” if you will) over to the City of Hoboken’s main budget to fill part of the ongoing structural deficit. This amounts to 3-4 million dollars a year out of our pockets that goes right into filling the Roberts budget gap. Even with that HPU revenue the city still has a nearly 12 million dollar gap this year.

To make matters worse, the City Taxpayers are paying for a 2 million dollar bond issue to pay Unitronics for the work done on the 916 Garden automated garage even though the HPU had 2 million in revenue to pay the bill. Why? It was just another way for Dave Roberts to get around the rules that say you can’t bond to pay for ongoing expenses.

HHoney
Member
HHoney
8 years 3 months ago

[quote comment=”86781″]Roberts swallows up millions in revenue from the HPU, but doesn’t include the expenses in the main budget.[/quote]
I hope that’s not true since that is Enron accounting! US GAAP requires that all revenue and expenses are booked at the same place (i.e. account, department, company, etc.) and receive the same treatment.

Red Haven
Member
Red Haven
8 years 3 months ago

I think the regular budget is up to $102 million now, not including the expenses of the HPU. Roberts swallows up millions in revenue from the HPU, but doesn’t include the expenses in the main budget.

daviddavidson50
Member
daviddavidson50
8 years 3 months ago

Does anyone know how much Roberts has spent this year? (including parking dept. as this has been included in recent years) Isn’t it around $116 million? What was the total, including parking, last year and the one prior to that?

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