Last year around this time, Mayoral Kamal Johnson suggested that Councilmember Rich Volo should resign for raising the specter of the City's imminent insolvency.
As it turns out, although the term bankruptcy may have been a bit extreme, Volo was not wrong in warning about the City's increasingly precarious financial situation.
At last night's Finance Committee meeting, Heather Campbell, city treasurer, reported that the unrestricted funds in the City's fund balance now total $2.27 million. The shortfall between anticipated revenue and actual revenue in 2025 is expected to reduce that amount to $1.88 million. It is recommended that a municipality's unrestricted fund balance be equal to two months (or 16.7 percent) of expenditures. For Hudson, two months' expenditures amount to $2.66 million.
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So we are 84 days into 2026...
ReplyDelete- So far the City apparatus was distracted by federal immigration policy (not within Hudson municipal purview, regardless of your view on the matter).
- Then the Housing Industrial Complex (HCHC) tried to manufacture a fake scandal about a parking lot... and wasted everyone's time.
- Yesterday it was a potential Jussie Smollett / Godfather mashup complete with dead fish and "beaded feather". Thank you RS, really lining up some Nieman Fellowships and Pulitzers with your paid work.
Every week a distraction, feelings, "holding space, and making space," but very few facts.
And here we are... the City budget is still headed to $20m per year. It was $14m per year (2018) before Covid, and when the population was higher.
Meanwhile, the City of Hudson Youth Center gets more than $750k for 3 dozen kids and a dozen unionized employees, and the Hudson Fire Department barely gets $250k p.a. for daily call outs and to save the city from Risk of Ruin.
Yes, that is right.
We spend 3x more on the Youth Center ($750k+) than we spend on the Fire Department ($250k).
One saves lives and property in one of America's oldest cities, the other is a crony job creation program that duplicates activities that we already pay HCSD $60m taxes for, and give money to a dozen area not for profits.
Even the "Friends of Hudson Youth" a well intentioned Union Street based lobbying and fundraising outfit, raises more private funds for the Youth Center, than city tax payers spend or raise for the Fire Department.
There are more Hudson Fire Department volunteers, than there are youth that attend the Youth Center during the year.
Make it make sense.
Dear BEA: The Mayor, CC President and Treasurer, who together make the budget:
Step 1: City-wide Tax Reassessment.
It costs $50k, will increase fairness. Its almost a decade overdue.
Step 2: Zero-based budgeting (ZBB) every year.
Stop approving unbudgeted expenses. If it is not in the budget, voted on by the Council, it has to wait a year.
Step 3: Focus on what only a municipal government can and should do:
- Public Safety (DPW / HFD)
- Public Works (DPW)
- Public Administration (Clerk + Treasurer)
- Public education (HCSD has this at $60m p.a.)
The rest can be done better by the philanthropic or private sector, or New York State, that can levy taxes other than property taxes and has the scale.
Kinderhook and Claverack now has more residents, 8k and 6k respectively, and less than a 1/3 of Hudson's annual budget.
The 2027 Mayor's Race might be the first time multiple candidates will run AND dare say the verboten words in Hudson; "lower taxes".
At some point City Hall is going to have to start taking serious cost cutting measures beyond a hiring freeze. These issues are not going to go away anytime soon, if ever, and they just might get a lot worse, especially if gas prices remain high and higher Waiting til the you know what hits the fan is not a good idea. But I don't see the current Finance Committee being able to deal with anything that might prevent insolvency. How long did last night's meeting last? All of 32 minutes?! Did they accomplish anything? What will be on the agenda for next month's meeting? Just more bad new$ with little to no response to it??
ReplyDeleteWe’ll be digging out of Tom and Kamal’s mess for years. At least we seem to be getting back on track with parking tickets and unpaid property taxes.
ReplyDelete