Big state aid cuts coming today at 5:00PM…Two Taj Mahal's to be built next year in Barnstable.....

Three months into the F/Y09 state budget Governor Patrick finds himself $1.5 billion short.

The F/Y09 budget is $28 billion, but in order to put the deficit in perspective the state revenue shortfall needs to be proportionate to the first six months of the budget, or $3 billion if current revenue stream continues....

The $1.5 billion is a 21% first quarter deficit.

The Governor ordered cuts of 7% in state spending in areas other than local aid which still leaves him 14% in cuts to balance the budget.

In his F/Y09 state budget, local aid is 20.5%, or $5.35 billion.

75% or $4.26 billion of local aid is some form of school aid;

• Chapter 70,
• Regional Transportation,
• Retired Teachers' Pensions,
• Charter Tuition Reimbursements,
• School Lunch, and
• School Choice Receiving Tuition.

The Governor will have no choice but to cut some school aid to avoid draconian cuts in other areas because he’s looking at a total deficit of $3 billion.

Lottery receipts this year totals $811 million, which shouldn’t be cut because Beacon Hill merely handles and disseminates the funds through a formula.

It appears to me that Governor Patrick will have no choice but to cut $870 million from school aid to make up for the F/Y09 deficit.

It was only yesterday that I talked with a DOR employee who will be involved in making individual community cuts.

Ironically when I spoke with her last Friday she was concerned about the impacts of passage of Question 1; elimination of the state income tax.

It seems everyone who works for the DOR was put on layoff notice should voters approve the elimination of the income tax, and rightfully so,

since the income tax makes up $13 billion of the state’s $28 billion budget.

During our conversation yesterday, I kidded her by saying local aid crisis was manufactured to send a message to voters on November 4th just how devastating the elimination of the income tax will be.

She laughed, but said her life will be miserable for the next month because she’ll be the person local officials will complain to about cuts.

Oddly my call to her yesterday was to obtain the level of free cash and stabilization funds for Barnstable's five fire districts, thinking maybe the various prudential committees would be willing to loan the town some of the fire district's $20 million in cash reserves.

Tonight Barnstable will get caught with its dick hanging out, because Mark Milne and John Klimm never filed Barnstable’s Schedule “A” report for F/Y08 with the DOR that was due in July.

Among other facts on the report are the levels of free cash and stabilization funds.

Free cash is just that, extra cash that can be used for any purpose once certified.

The Stabilization fund is “extra” cash earmarked for capital improvements, but is essentially the same as free cash, as money can be redirected to free cash.

The DOR will be looking at Barnstable's certified cash reserves as of July 1, 2007 in the amount of

 $23,840,623,

 which happens to be the fourth greatest of all 351 Massachusetts communities, behind Boston, Cambridge, and Springfield, all much larger communities. 

CLICK ON IMAGES TO ENLARGE

198 Massachusetts communities have less than $1 million in free cash, 13 of which had negative levels which mean the communities ended the F/Y08 in a deficit.

70 communities had less than $2 million in free cash, and 72 have less than $9 million.

Pretend you are the DOR that has to implement the individual cuts to total the Governor’s order tonight.

The cuts will be based on need.

On paper Barnstable looks like Bill Gates standing in the free cheese line.

Barnstable's F/Y09 net state aid of $11,970,503 is still $3,385,773 less than the $15,356,276 obtained through RAGE efforts in 2002. 

Look for significant disproportionate cuts in Barnstable's state aid next week because of the outlandish cash reserves of F/Y2008.

The truth is a month ago John Klimm told the council the town is virtually broke.

Mark Milne said last week that he has $8 million in free cash.

Two weeks earlier John Klimm, with Mark Milne sitting alongside, said there is $6.5 million in free cash left in the till.

Two weeks ago Milne told the school committee that it will be short $5 million for next years budget, and the superintendent said she'll have to lay off 100 teachers.

Unfortunately neither bothered to tell the DOR about the frivolous spending of last year's free cash, as of Monday of this week.

In addition to the $8 million in cuts already scheduled in the town's F/Y10 budget, town hall will have to deal with cuts in state aid for this year, and possibly next.

That $17.4 million in free cash would look good right now.

Free cash should be saved for a rainy day, not to be spent living beyond the town's means.

Remember a week ago Tuesday, the School Committee met to discuss the building of an $80 million elementary school without state funds.

Tomorrow the Barnstable Airport Commission will ask the town council to appropriate $2.7 million to buy the property at 191 Airport Road by eminent domain causing 25 people to lose their jobs just before Christmas, and taking $10,500 off the tax rolls each year.

Why?

To enable the airport to build a $53 million terminal.

Airport Commission Chair, Dan Santos, believes the state will hand over $24 million to pay the state's share of the costs of the new terminal, even though there will be draconian cuts in local aid, health, and social services.

A few months ago the council Okayed a measure to enable the Airport Commission to spend $3 million in state money to design the new terminal that may not ever be built.

Last year the council appropriated $2 million to take Blackburn’s Automobile Junk Yard to provide the new terminal with overflow parking.

Up to now the airport spent $4 million for an environmental impact report and Cape Cod Commission DRI.

Without a shovel hitting the ground the airport commission has spent $12 million on a pipe dream airport terminal to nowhere.

Without a vote of the people who'll have to finance the $135 million the two buildings town hall continues to march on unabated while 150 teachers and 100 municipal employees are to be pink slipped.

The schools will feature no music, no sports, no gym, no extra curricula activities, and super-large classroom sizes, while the tradesmen who fly to Nantucket each day will come and go in the lap of luxury. 

Will Janet Joakim please pass the bong.  

Facts stated in this post can be verified through the three You Tube videos.

Comments

I'm curious to see how Munafo votes tonight.

He is an outspoken proponent of property rights and he supported the vote to accept design funds for the airport knowing that this plan required an eminent domain taking.

Which Jim Munafo do you think will show up tonight?

The rabid ideology or the shill for business?

[John Julius]

Jim Munafo voting on what tonight? Today is Wednesday. Council mtg is Thursday.

Hey, I heard that Gov Patrick has asked John Klimm, Janet Joakim, Mark Milne, Tom Lynch and the school superintendant Patricia Grenier to go to Boston for a week and help straighten out the state budget crisis....

Anyone else hear this?

I do hope so because these people really know their stuff! Money? NO PROBLEM! AAA BOND RATING? NO PROBLEM!

Their plan?

RAKE IN BILLIONS... STASH IT ALL AWAY... PROVIDE NO SERVICES.

THEN when they pile up BILLIONS, give all their pals NICE RAISES! The hell with the taxpayers! They can stick it.....

And that AAA BOND rating is the GODALMIGHTY most important thing!

We are all set now. When do they leave for Boston?

The state's worries are over. John Klimm and Janet Joakim at the helm. No problem!

I think he meant tomorrow.

Munafo flip flopped on the airport vote once before.

Munafo was against the airport expansion before he was for it.

He is on record as being against takings.

We'll see if he flips or flops on the taking tomorrow.

[John Julius]

Munafo is against land takings? No offense but I am not certain is Jim Munafo even knows what eminent domain means....

And as for the rest of the idiots on the council, it will be interesting to see how each votes on this...

THE AIRPORT belongs to US and should be in control of US, not any commissioners. THAT MONEY belongs to OUR general fund!

[Taryn]

Got a call from owner of KON LIMO. He had complaints from Joakim supporters about language used announcing shuttle service our registered PAC is providing to ALL voters for the recall on this blog.

To show what good sports we are, we are offering free rides to folks who want to vote YES or NO on the recall. Our PAC is paying KON LIMOUSINE for the service, which will be at no cost to the voters.

No person at Kon Lomusine has taken a position on the recall. We merely chose them because they are the closest limo service to the precinct.

Kon has a right to do business with whomever they please, and they are not taking sides in the recall.

I hope this clears the matter up for anyone who misunderstood any previous postings on the subject of the free shuttle service. Thank you.

[A E Customer]

What happened to the video about the recall?

[X]

Joakim whined about her account number being posted on her three year old bad check and YouTube said it violated their terms. It has been reposted at BARNSTABLEBEATDAWGHTCOM

[barnstablebeat.com]

barnstablebeat

She really called You Tube to complain? wow. You'd think she'd be spending her time trying to get people to vote for her.

Yahoo headlines: Dow Plunges 400 to Below 9,000 as Retail Sales Disappoint

Gee...aren't you glad we spent all that money on Main Street? I hope those shop owners manage to sell something between now and next July. I think we should give the Mall another tax cut.

[main street hyannis]

lots of empty storefronts now, and lots more when their leases end.

NEW YORK - Oil prices dipped below $75 a barrel Wednesday, a new 13-month low, as OPEC reduced its 2009 petroleum demand forecast amid signs that the global economy is headed for a severe downturn.
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Light, sweet crude for November delivery fell $2.95 to $75.68 a barrel on the New York Mercantile Exchange after earlier sliding to $74.57, the lowest trading level since Sept. 5, 2007.

Oil prices have now plummeted 48 percent since peaking at $147.27 on July 11.

[mh]

Is this recall flopping? If so, why?

How much money is in the coffers for this PAC to drive voters to the voting booth?

I hope you aren't counting on your broke crazy bitch Taryn for the funding!

Leave her alone. Is there some reason you are making a stupid comment like this?

I hope you weren't planning on taking out a student loan any time soon:

SLM 8.76 -2.74 -23.83%

Great time to build an airport. And, a water park! Let's get some more $8 a hour jobs down here.

Hell, who needs an education.

JPMorgan's Plans for More Loan Losses as Economy Weakens

Oct. 15 (Bloomberg) -- JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said he will set aside more money to cover loan losses as the biggest U.S. bank by market value braces for the economic slump to get ``a lot worse.''

JPMorgan, which reported an 84 percent drop in quarterly profit today, said it expects loan losses will continue to climb. The New York-based lender said net charge-offs in the retail bank climbed to 2.44 percent from 1.99 percent in the second quarter and 0.82 percent a year ago.

``We have to be prepared that it gets a lot worse and we are,'' Dimon said today on a conference call with analysts. ``We are bracing for increasing loan loss reserves.''

Dimon, 52, said unemployment, reduced consumer spending and turmoil in the markets are weakening results. The U.S. Labor Department said Oct. 3 the unemployment rate was 6.1 percent compared with 5 percent in April. The U.S. consumer price index fell in August for the first time in almost two years as declining fuel costs and a slowing economy cooled inflation.

JPMorgan added $1.3 billion to credit reserves in the third quarter, bringing the total to $15.3 billion. The company's Tier 1 capital ratio, a measure of ability to withstand loan losses, stood at 8.9 percent. Regulators consider banks to be ``well- capitalized'' if the ratio is 6 percent or higher.

Charge offs on home-equity loans rose to $663 million for the quarter, more than quadruple last year's $150 million, and 30 percent more than the second quarter.

``The home-equity number is starting to get a little bit scary,'' Charles Bobrinskoy, vice chairman of Ariel Investments, told Bloomberg Television today. ``The good news is they can absorb that kind of hit and still make a profit,'' said Bobrinskoy, whose firm manages $13 billion, including about 400,000 JPMorgan shares.

Home-Equity Losses

JPMorgan, which expects home-equity losses of as much as $800 million over the next several quarters, cut originations 51 percent in the third quarter to $2.6 billion.

Non-performing subprime mortgages grew 39 percent to $2.4 billion and the bank reported $273 million of bad debt in the third-quarter. Losses on the loans could be as much as $425 million in early 2009, the company said.

Prime mortgages had their biggest third-quarter losses on loans originated in 2006 and 2007, with California and Florida accounting for 80 percent of the total. The company charged off $177 million, up from $9 million a year ago, and expects that number to climb to $300 million next year.

In the credit-card division, JPMorgan said net charge-offs were at 5 percent could climb to 7 percent by the end of 2009.

Dimon said today JPMorgan is looking to be more prudent as it continues extending credit across all of its businesses.

``If you're not fearful, you're crazy,'' he said

Governor Deval Patrick is planning to announce this afternoon that 1,000 jobs will be eliminated and at least $700 million will be cut from the budget, according to two sources briefed on the details.

The job reductions will come through a combination of layoffs, leaving open positions unfilled, and encouraging current employees to retire, said the sources, who spoke on the condition of anonymity because the governor has not announced his plan.

The governor is also planning to announce that the state will use $200 million in funds from the state’s $1.8 billion reserve account, the sources said. The current state budget relies on about $400 million from the rainy day fund; Patrick would need approval from the Legislature to spend more, and top lawmakers are weighing whether to return for a special session or wait until their next formal session in January.

[Gary Lopez]

I think the governor forgot that the 1,000 people laid off will just turn around and collect unemployment.

The state is self-insured, so the Governor will just pay these people for not working for eight months.

Dow plunges 733 as new data points to recession (AP)

AP - Despair over the economy sent Wall Street plunging again Wednesday, propelling the Dow Jones industrials down 733 points to their second-largest point loss ever. Stocks fell on a combination of disheartening economic data, including a big drop in retail sales and a Federal Reserve report that said tight credit conditions are hurting businesses across the country.

lots of bad news today...maybe tomorrow will be better.

[John Julius]

So big deal. The dow fell 733. Who cares at this point? We all know that the market will go like a yo yo over the coming weeks and probably months...

We have bigger fish to fry here....

As for the wonderful GOV, he is as clueless as John Klimm and janet Joakim. He also has the same WASTAHOLIC policies in place! Anyone read that article just 2-3 weeks back in the Herald? The wonderful GOV hired over 2,000 FOLKS since just last January.... and NOW he only plans to let 1,000 go?!

SOMEONE's MATH is, ah, ah, ah ah, WRONG, you might say?!

I'd say so!

Look, Barnstable TAXPAYERS here need to focus on the important things.

1. RECALL Janet Joakim

2. Someone think about starting the Barnstable Taxpayer Association....

3. Get real READY to fight an OVERRIDE in Hackstable because this will come, and soon....

We pay John Klimm $ 150K PLUS a year and he does NOT LIVE HERE and he PAYS NO TAXES here! Shame on us!

We also pay the gross WASTE of likely $ 100K a year on a FULL TIME Attorney that the SCHOOL DEP'T DOES NOT NEED! The LEGAL DEP'T has THREE there who do nothing!

And the school SUP'T. She is WAY OVERPAID, like about $ 200K a year. Did I SAY A YEAR? Last I knew the school YEAR has 180 days in it. Does anyone really think she works OVER this? Maybe a month or 2 but PLEASE.....

So, like I said, we have problems here....

Then we have the matter of the charter commission folks there. NINE people to help make a decision on the FUTURE direction of our town. The real problem is that many people in town think that this latest charter committee is a BAG JOB....

Does everyone here know what a BAG JOB IS?

So friends... forget about Wall Street. Forget about the state. Focus on Barnstable. We have more corruption here than in the state!

And to be honest, who gives two #####'s about all the supposed SERVICES that the GOV is going to cut!

Many people here EXPECT the state gov't and John Klimm to help them do everything.... Klimm provides NO SERVICES already so what the hell can he CUT??!!

And the GOV? Go ahead. CUT all he wants. No money for snowplowing? Who cares? People will drive through it...

The point is that these guys have lived TEN TIMES beyond their means and HIRED many PALS! Klimm did the same damn thing that Patrick did. So now we are supposed to be scared?

Governments are TOO damn big and TOO MANY HACKS line the state payroll and here, our Master Klimm does the same thing...

And NOW, oooooooooh, my GOD, how will we survive? Cut and FIRE 1/3 of them all and we'll do just fine!

PEOPLE here who all work hard and LIVE WITHIN OUR MEANS do just fine, and so can these HACKS!

AFTER the new GOV was elected, does everyone know HOW MANY job applications were filed? Try 31,000....

So what lesson do we learn? We learn that government is WAY TOO BIG for one....

For another thing, people rely WAY too much on all governments.... No offense but we don't need government to spoon feed us...

Until and unless we all start to push gov't to get rid of the HACKS and stop relying on this hackery, nothing will change...

As John Klimm and Governor Patrick continue to say, "Thank you. Please keep the money coming from your money trees. And please leave your front doors locked and your checkbooks on the coffee tables." Thanks again...

This is what the truth is....

Gov Patrick added over 2000 Jobs since he was elected. Now he's going to cut 1/2 of those. He will still be up 1000 jobs since he got elected. He's a phoney too.

Hey about 2 weeks ago all the mayors in MA went to Beacon Hill to meet with the govenor and his staff regarding Aide and to cities and towns.

Who went up there on behalf of barnstable??? We don't have a mayor. Was Barnstable even in the game??

Recall Joakim and lets get a mayor on the Payroll now!