Thursday, October 25, 2007

Beware the Ticking Time Bombs

Watch out Macomb County taxpayers, our County's financial ticking time bomb is about to explode, and when it does the economic carnage will NOT be pretty!

As reported in the Thursday, October 25th editions of the Detroit Free Press and the Macomb Daily, Macomb County is on the verge of a historic budget meltdown that would jeopardize many of the things that we now take for granted. The financial crisis confronting Macomb County -- more accurately, the crisis confronting every Macomb County homeowner, business owner and taxpayer -- is unlike anything we have ever experienced. Worse, this crisis is likely to linger and expand in the coming years.

Yes, our County is in BIG trouble. This is why elected officials in cities and townships across Macomb County are scrutinizing their budgets. Everyone, that is, except Shelby Township Supervisor $kip Maccarone. Shockingly, $kip seems oblivious to the realities of life today in Michigan and Macomb County, and is pressing ahead unaffected by the economic alarm bells going off everywhere.

$kip keeps spending tax money as if the township's pot is overflowing. Since the Supervisor is the person responsible for preparing the annual budget, spending falls directly in $kip's lap. He may try to pawn responsibility off on the Board of Trustees, but he won't get away with it. The bucks stop with him. He is the one who directs Department Heads to spend less or more, and he has been reluctant to even consider budget reductions.

$kip either doesn't read newspapers (unlikely), doesn't believe what he reads (possibility), or worse, thinks that none of this will ever touch Shelby Township residents. For residents who watch the Board of Trustees meetings, it is clear that $kip is not bothered by the bad news. $kip points to township audits showing strong finances to justify his spending. This is the crutch he is using to support his proposal for a massive $50 million township "campus." The problem is, what impacts one community ultimately impacts another, and failure to plan ahead will mean very tough times for everyone when the economic realities hit us.

Documents show that the township's general fund revenues (taxes) for 2007 are projected to be around $15,600,000 while general fund expenditures are projected to be around $19,400,000. This means that to balance the township's budget for 2007, as required by state law, the remainder must come out of the township's general fund reserves. In other words, the township must take around $3,500,000 out of its general fund reserve (savings account) to support $kip's spending. What would happen if you did this with your family's budget?

The general fund reserve balance is projected to be $9,300,000 for 2007. Taking $3,500,000 out of the reserve to balance the budget (as required by Michigan law) will take the reserve fund down to a little over $5,500,000. Continue down this path, as $kip wants to do, and Shelby Township's general fund reserve will soon be depleted. Then what will we do? Where will the money come from to balance the township's budget when the piggy bank is empty?

If you think we are over-dramatizing this point, think again! This is precisely what Macomb County has done to cover its spending. Four years ago, Macomb County had millions in reserves. Today, the reserve is gone, the bank is empty, and a $16 million deficit is staring us in the face. Frankly, we don't like what we see.

We applaud our township officials who have voiced concern about rising spending. The Treasurer, Clerk and a few Trustees (not all, but a few) deserve our thanks for understanding what is going on. As for $kip, when our township is forced to raise taxes or cut deep into programs which benefit Shelby families, the fault will rest with HIM.

Hey $kip...you can run, but you will not be able to hide. You will be held accountable for your actions - or rather your inaction - when Shelby voters get their say.

$kip is holding our future in his hands, and the ticking time bomb is about to explode. Unless we work for change, the collateral damage from the financial explosion will be massive and far-reaching.

No person is an island, and no municipality can (or will) stand on its own. Everything is interconnected, and eventually the dominoes fall. Will our township be ready? That is the big question hanging over all our heads. Unless we change course, the likelihood is that when the economic troubles hit, we will have little choice: higher taxes or less services.

This will be the true legacy of $kip Maccarone. When this day arrives, we will all be asking ourselves why we didn't fire $kip long before any of this happened.

Don't be afraid of $kip Maccarone. Use the power of your free speech and your democratic rights to demand accountability and bring needed change to our township. YOU have the power!


3 comments:

  1. The way Maccarone is spending our money, you wonder if he has a printing press somewhere at the township hall to cover expenses? The real victims of this reckless spending are the people who pay the taxes. If you think we pay too much now, wait until Maccarone gets through.

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  2. Why the rush to spend all the money? The last thing we need is another tax increase, but I fear one is coming. Word to the wise: Shelby Township voters do NOT like tax hikes. Can you say RECALL.

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  3. A million here, a million there...pretty soon we will be broke. That is Maccarone's mantra. He may not care about what happens to our township down the road, but I do. Big Mac will bankrupt our township, and we will all pay a hefty price. Beware....

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