There was an extremely interesting article in the May 7 th edition of the San Francisco Examiner concerning the economic environment in the suburb community of Vallejo, California. While we do not claim that there is a direct correlation to events in Martin County, our leaders could certainly benefit from understanding the lessons apparent in this discussion. Many of the events cited in this article are quite similar to those currently unfolding here.

To put this article in perspective as you read it please note that:
Martin County has approximately 145,000 residents. The current projected budget shortfall for 2009 is in excess of $20 million. Real Estate taxes, sales taxes, gas taxes and home sales are all down for the year and continue to decrease. The assessed value of existing homes has decreased substantially which will show up as a reduced tax base and Ad Valorem income for the future. The Fire/Rescue and Sheriff’s Deputies contracts have 8 – 10 percent raises already built in for 2009 and the Teamsters Union is at impasse with the County over a requested 8 percent increase in salary. Fortunately, Martin County does have significant reserves - at this time.

“The (Vallejo) city council voted unanimously Tuesday night (to declare bankruptcy) following hours of public comment and months of failed negotiations with police, fire and other unions.

City Manager Joseph Tanner and the city’s finance director had advised filing for bankruptcy before its fiscal year ends on June 30 because Vallejo faces a projected budget deficit of $16 million and has no money in its reserves.

The San Francisco suburb of 117,000 people also is expected to generate $5 million less in revenue than projected because retail sales and property values are down amid an economic slowdown and slumping real estate market, according to a report issued by Tanner.

Many officials and residents attribute Vallejo’s fiscal troubles to overly generous pay and benefits to the city’s police and firefighters. The salaries for police and firefighters currently take up 75 to 80 percent of the city’s general fund.

Representatives from police, fire and electrical workers unions all argued against the Chapter 9 bankruptcy protection, saying that doing so would only make hiring already short-staffed public safety agencies even harder.

Other critics warned that if a bankruptcy judge does not rule in the city’s favor, the legal costs of the proceedings could sink the city further in debt.

The city’s mayor, Osby Davis, resisted filing for bankruptcy, arguing that it would stigmatize Vallejo and hurt future economic development. But after months of personally negotiating with the unions, Davis conceded Tuesday that there were no other options that he could find.

”It’s time to do something different. I don’t like it. I don’t want it,” he said before voting for bankruptcy protection.

The seven-member council all said the process of making the decision was difficult and emotional.

”Honestly, if there are any more options out there, I would like someone to tell us what they are,” said Councilwoman Joanne Schivley, who then recited her phone number twice for people to call her with ideas.

City leaders said filing for bankruptcy will not immediately allow them to fill the potholes on untended streets or add more detectives to the undermanned police force. But they hope, if a judge rules in their favor, it will allow them to restructure union contracts and other debts in a way that allows the city to turn itself around financially within the next few years.

In addition to being the largest California city to declare bankruptcy, Vallejo will be the first city in the state to do so because its revenues cannot cover expenses, experts say.” ENOUTH SAID!

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On the positive side of things, your Taxpayers’ 7 May Board Meeting was hosted by the Supervision of Elections as part of our ongoing effort to visit with all of Martin County’s Constitutional Officers. We were particularly interested how, in this election year, this office would deal with the reduced budget required by the decreasing County revenues. Also, the State mandated all Counties convert from the recently purchased “touch screen” voting machines to a paper ballot and scanner operation for the coming elections. This required the Supervisor to purchase a number of machines over and above those furnished by the State and institute a number of training programs for both Staff and voters. All of these efforts put additional strain on the Supervisor’s budget.

We were particularity impressed with two operational initiatives, and that the Supervisor has met her reduced budget projections from the County.

The first impressive feature is their new offices and facilities. When the Health Department moved into their new home the old facility on Martin Luther King Blvd. became available. This old post office building has now been modified by the owner into an excellent facility customized for the Supervisor of Elections and leased to them at the cheapest per square foot rate in Martin County Government. This efficient economic model is one worthy of being imitated by other County offices.

The other impressive program is the method initiated whereby the Supervisor’s office provides State required training to future voters while they are still in high school. Rather than lecture and brief, the Supervisor’s Office actually run the high school elections for student officers and even home coming queen. Using real world procedures provides an excellent workshop environment to teach not only how to physically use the County’s voting system, but also the procedures and ethical practices that are the foundation of our democracy. WELL DONE!