2/1/2008
Another state subsidy - from the Transportation Fund?!!
Representative Gary Hebl (D-Sun Prairie) introduced legislation last week that would create a “Snowy Day Fund” to distribute grants to communities hard hit by winter (horrors!) weather.
Representative Hebl states in his press release “Winter weather has put many municipal budgets on thin ice this year, and what the Snowy Day fund does is provide some relief for the areas that have been hardest hit.”
Municipalities where (per the draft legislation) …snow and ice precipitation and the number of snow or ice events in a DOT transportation region are greater than the region’s… [averages] over the immediately preceding five-year period (whew)…
would quality for a grant not to exceed $50,000.
I absolutely don’t buy it. This is Wisconsin. And yes, the harshness of winters varies. But so do many other expenses that cities, villages, towns and counties are responsible for. And it’s the job of financial folks and elected officials to properly budget to carry out those responsibilities. Through their own “Snowy Day Funds.” Through contingency funds that every municipality should include as part of responsible budgeting. Through their own borrowing if they really get in a bind.
But not via a bailout from the state.
And how about this? These “Snowy Day Fund” grants would be paid for from $500,000 in existing fund balance in the Transportation Fund. What??? The Fund that’s been raided over and over again in past budgets? The Fund that’s borrowing more money than ever to build critical road projects in Wisconsin?
Wow.
The period of time that would be reviewed for special winter maintenance is specified as December 1 through March 31. That’s important in that municipalities budget on a calendar year – and that allows them to work/adjust from essentially two budget cycles in any given winter.
You better believe Appleton’s finance guru in the Public Works Department, Ray Kilanowski, has an up-to-the-minute handle on “Snow and Ice Control” expenditures. The year-end weather wasn’t easy on the 2007 budget, but expenses of $964,700 for the year still came in under a budget of $1,035,662.
Given our January weather so far, the 2008 budget may be a bit hairier, but as Carl Schulz, Appleton’s Street Foreman says, who knows what next November and December will bring? So far, he’s not concerned – though that doesn’t mean he won’t get concerned if his snow crews continue to be needed. Appleton’s 2008 Snow and Ice budget is $935,810, and per Kilanowski’s reporting, dollars spent to date total $207,252 (the labor portion is only through 1/19). That’s 22% of the budget, and we’re only partially through January. Eeek.
Be assured, Appleton won’t be calling the state for a bailout. All good intentions aside, this legislation should be dead on arrival.
COMMENTS
Right on Jo!
Dale (Fri Feb 01 07:07:27 2008)
Right On! I wonder if Cities can hedge against weather for costs of salt, gravel etc. Farmers do it for the price of wheat and also buy crop insurance.
Ooh, great thought. I wonder. Certainly they can make decisions about when to purchase contracts, how much to pay to tie down a price, that kind of thing. Same thing with asphalt. Appleton has created their own salt hedge by spending the money to build (and maintain) a new salt storage building that requires only three large deliveries per season (I think that's right, don't quote me.) and some designated labor to unload the salt and maintain the building. I think they've contracted up front for the quantities they can store, so don't have any fears of running out. JE
dave allen (Fri Feb 01 07:31:25 2008)
Jo,
I agree with you this time. Failure to plan by some communities should not burden on the rest of us. Maybe the money should be a low interest loan, or a loan against 2009 shared revenue. I'm calling Steve. I love it Dave. And it's so great that you commit to communicating to your Representative. It's so great that you know your Representative! I love it. JE
Dave (Fri Feb 01 07:57:32 2008)
What comes with State money?
State control of how much snow has to fall before plowing.
No thanks!
Al (Fri Feb 01 11:27:43 2008)
Maybe we could blame this one on George Bush also.
Anonymous (Fri Feb 01 15:10:31 2008)
Jo is absolutely right. Don't subsidize snow plowing from the transportation fund. Who could be so crazy as to suggest that snow plowing has anything to do with transportation?
Just don't plow snow. It would make for quieter winters, and save gobs on accident claims. In the spring, we could all come out and say hello to each other, just like we did in bygone days.
Way to go, Jo!
Rich Eggleston (Fri Feb 01 16:29:58 2008)
Ok Rich. So why does someone else have to pay for whatever had been the municipality's responsibility? GMAB.
Jo E. (Fri Feb 01 17:33:10)
Snowy Day Fund? Another great idea from our forward thinking representatives in Madison.
Why don't you just take the Snowy Day fund money out of the state's contingency fund? Exactly right - what contingency fund? If it weren't so sad, it would be funny... JE
IdeaMan (Tue Feb 05 16:10:25 2008)
|
