Denial (Klein's Idionomics Strike Again)

Philip R. Klein has uncovered another conspiracy in Jefferson County, as detailed in his latest posting on the Southeast Texas Political Review:

We told you. We told you. We told you. We told you. And we told you. And it has begun - the excuses for why government cannot cut back. Meaning - get your frigging check books out - residents of Jefferson County and Business are now witnessing the FINAL ACT of Jefferson County and its financial health.

Well - the Review has learned that the smart old guys that watch your money on commissioners court have come up with a plan. And it was what we told you months ago they were going to do. So here is the plan for you in the media that want to write your page six story - or your blurb story after the weather.

The Plan :

1. Cut into the "Rainy Day Fund" - take almost all of it.
2. Increase Fees and Taxes
3. Get rid of political foes and neuter their staffs.

And there you have it - uh but wait. Is that $8 million?

Klein's $8 million reference shows he's not remotely familiar with the facts. The county will end its fiscal year with $21,017,129 in its rainy day fund, more properly the unreserved fund balance. See for yourself. Likewise, I'm not sure how getting "rid of political foes and neuter[ing] their staffs" will reduce the budget deficit, but this apparently makes sense to Philip R. Klein.

The real story: Jefferson County is predicting a shortfall of $8 to $20 million; Commissioners will have better definition at the end of the budget hearings. Here are some steps taken so far:

• Commissioners cut 9 constable positions in budget hearings...
• County commissioners voted to close the Jefferson County Library and the county's bookmobile...
• Jefferson County kills crime lab, asks Ford Park to cut costs...
• The county is expecting to save $820,000 on vehicles for the Sheriff's Department...

I suspect that if Klein had any real insight into the budget process, he would have mentioned cutting the Jefferson County library and 9 constables positions.  I'm sure he'd learn more if he actually attended the hearings, rather than just manufacturing a story to cover his ignorance of the subject matter.

Jefferson County is in a better position that the State of Texas, who faces a budget shortfall of between $11 and $18 billion (that's billion with a "b", Philip):

$11 billion budget shortfall projected for Texas

John O'Brien, director of the Legislative Budget Board, told a legislative committee Monday that the estimate is conservative and could grow to as much as $15 billion.

The shortfall is a result of several factors, including lower-than-expected sales tax receipts.
State agencies have submitted proposals to cut their current-year budgets by 5 percent, as requested by Gov. Rick Perry. Those savings will only amount to about $1.7 billion, O'Brien said.

According to the Wall Street Journal, this shortfall could amount to about 20 percent of the overall Texas state budget:

But as the state's budget shortfall widens—to as much as $18 billion, or about 20% of the next two-year budget, according to the state legislature's latest analysis released earlier this month—critics are complaining that Mr. Perry's policies have left the state with little room to reduce spending.

"There is no way that they will be able to come up with $18 billion in cuts," said Eva DeLuna Castro, a senior budget analyst at the Center for Public Policy Priorities, a nonprofit that advocates for low-income Texans. "They would have to shut down our prison system."

Likewise, almost every state is having similar budgetary problems. See for yourself. The contributing factor, a worldwide recession, is obvious to most rational adults. Yet, Philip R. Klein published this comment  in 2007 just before the bottom fell out of the economy:

"It is the economy stupid. And it is doing pretty good."

In that article, I pointed to a number of factors that proved the economy was shaky.  As another example of Klein's confusion, he admitted he didn't know what he was talking about in this posting two weeks ago:

Well - the Marine Division - which is the Jefferson County Navy - a part of the Jefferson County Sheriffs Department. Why this is not a part of the SO budget...well we do not know. But it is here and you the taxpayers are paying over a million dollars for boats to cruise the Neches River looking for Amada or Rashid - or someone drinking a cold beer on their boat.

As I pointed out at the time, the Marine division of the JCSO is funded through a tariff at the Port, not by taxes from local residents. See the Intergovernmental Agreement here.

In this latest article, Klein's ignorance of the Marine division is again evident:

Jefferson County Sheriff Mitch Woods told the commissioners court that taxpayers don't pay for the Jefferson County Navy. You know - the marine division that was a MUST!!!! Had to have. Big boats with 50 caliber (giggle) machine guns on the front of it - all the while only three mid-night patrol cars on the streets of Jefferson County. He tells commissioners that the money comes from a freight tonnage fee (tax) to ships that park up and down the Neches. Uh.....wait? Who is going to pay the "fee" (Tax) - business who does what? Passes the cost (s) to you? Really Mitch? Come on!!!

Klein still exhibits profound ignorance of the real issue. Most traffic through the port is international in nature, so the bill is being paid by foreign companies with a tariff on our exports, not local taxpayers. PRK's bottom line:

HELLO DEPARTMENT HEADS - JEFFERSON COUNTY IS BANKRUPT. End of story.

While Klein has a great deal of experience in this area, the county is not even close to bankruptcy, nor is this being discussed by anyone but Philip R. Klein. KBTV Channel 4 should have questioned Klein on this when he repeated this lie several times during his "commentary" (I use the term loosely) this week. This is unethical.