Fort Worth council may have no choice but tax increase Posted Friday, Jun. 18, 2010
What's that old saying, "When you find yourself in a hole, stop digging"?
Fort Worth City Council members should have that permanently affixed to their nameplates at City Hall, because the painful truth is that councils past and present are in large part responsible for putting the city into the financial hole it's in.
No, the council couldn't do anything about the recession, which has negatively affected revenue coming in from property and sales taxes. But for too long, the council has been making promises about employee pension and healthcare benefits that are flat out unsustainable. Of the $77 million budget gap that the city is facing for FY 2010-11, $22.6 million is directly tied to retiree benefits. Wonder how Fort Worth residents will feel if the city raises their taxes to pay for benefits that they themselves don't have? Councilman Danny Scarth does. "I have the deepest respect and admiration for city employees and want to do what's right for them," Scarth said at a Thursday budget workshop. "At the same time, I'm elected by constituents, many who may live in much more modest houses, who may make much less than our city employees, who do not have a retirement fund, and yet I'm going to tell someone of very modest means and a very simple lifestyle that we need a little more money from you because we have employees who have a retirement that we need to make up for."
That may be just what council representatives have to do if they remain unwilling to make significant changes in the benefit plans. If they were expecting cover for the tough decisions to come from two ad hoc committees that have been studying the retiree benefits, then council members are out of luck. The reports given Thursday from the pension and healthcare ad hoc committees, which included city employees and residents, can be summed up with two words: status quo. While everyone accepts that fairness among classes of employees is an important concept, that hasn't been the reality for Fort Worth. Police and fire are first among equals, and the recently adopted firefighters' contract, which runs through 2013, is dictating the committees' recommendation of no benefit reductions in the near term. According to Assistant City Attorney Laetitia |