Monday, February 02, 2009

Another $7.50 Per Person for Debt Service

Per the Sentinel, the Oneida County Comptroller is seeking to borrow another $19.7 Million for construction and equipment. That's more than $85 for every man, woman, and child living in this county of some 230,000 people (and dropping). The annual debt service (which won't kick in until 2010) will be $1.7 million -- that's almost $7.50 a person.

Don't these people know that we are in a recession?


Greens and Beans said...

By bonding for these projects without the assurances of being granted the federal stimulus funding may usher the danger of letting the vicious debt Genie out of the bottle. The “Catch 22” of this quagmire is that these projects must be placed on the bonding list before they can have any hope of qualifying for the federal stimulus funds. The inherent danger is, if the projects fail to get the federal funds, we may be strapped with additional debt that the taxpayers cannot afford.

Oneida County is already in debt. The population is decreasing as a direct result of stagnating to decreasing job growth. Oneida County’s economy has not rebounded from the twentieth century recession let alone trying to deal with this new twenty-first century recession. The question is; will the Oneida County Legislators be responsible enough to cut the projects that fail to get the federal funding? Should we trust this County Legislature who voted in lock-step to unanimously approve the capital budget last November?

This bonding situation is akin to purchasing a new vehicle. The qualifications are that the purchaser must produce the down payment and apply for a new car loan for the entire remaining balance of the purchased price. Only then will the manufacturer make the determination if they will offer the buyer a rebate. Sign on the dotted line with no guarantees and no backing out of the deal. It’s a crap shoot at best. A sucker’s bet for sure.

Who writes this goofy legislation on the federal level?

kemtee said...

"Don't these people know…"

More to the point, dear: do they care?

I think not. It's always been "do first and ask questions later" with OC government.