“Unless this board and our community are prepared to support raising taxes, Mecklenburg County government must shrink, contract, cut, reduce and/or eliminate current programs, services, projects, facilities, positions and employees, including many programs and services that are near and dear to the people in this room and those we serve in this community,” Jones said. “We must confront the brutal facts.”
Harry Jones Pushes For Charlotte Tax Hike, Some Charlotte-Mecklenburg Commissioners Resist
A majority of Mecklenburg County commissioners said this afternoon they would prefer not to raise taxes, and would be willing to delay most, if not all, capital projects to get a handle on a looming budget gap for 2010-11.
But commissioners were split on how much money to take from its reserves in the next budget, and how to prioritize spending for county and educational services.
The decisions made during today’s county commissioners retreat are not binding, but Budget Director Hyong Yi said staff will use them to help shape their recommendations in the coming months.
County staff recently predicted the county could face a shortfall of up to $62.8 million for 2010-11, and county departments have been told to identify cuts of up to 15 percent. The magnitude of cuts for the agencies will depend on where they land on the commissioners list of priorities.
For example, protecting funding for areas like Charlotte-Mecklenburg Schools or the Department of Social Services would require deep cuts to other areas.
County commissioners are holding their annual strategic planning conference today and tomorrow at the Mahlon Adams Pavilion at Freedom Park.
County Manager Harry Jones opened the retreat by saying the county is “at the bottom of a very large financial hole and we are not getting out of this hole any time soon, not next year, not the year after that and perhaps beyond.”
That, Jones said, will require leaders to rethink how county government will look like in the near future:
“Unless this board and our community are prepared to support raising taxes, Mecklenburg County government must shrink, contract, cut, reduce and/or eliminate current programs, services, projects, facilities, positions and employees, including many programs and services that are near and dear to the people in this room and those we serve in this community,” Jones said. “We must confront the brutal facts.”
Jones and others said many of the upcoming budget decisions will be driven by how commissioners want to pay for construction projects in the coming years.
Last year, commissioners agreed to cut back on how much money they borrowed on construction through 2013-14, in part, to respond to concerns raised by rating agencies on how much debt the county had taken on.
But Finance Director Dena Diorio said the rating agencies still have some concerns about the county’s finances, including how much money it has taken out of reserves for next year. The county uses the money to help pay for construction projects, but also has used it recently to help cover operating expenses in the recession.
The estimated $63 million shortfall assumes the county takes no money out of its fund balance, or reserves, for next year.
However, Diorio outlined five options for commissioners on what to draw down from the fund balance next year, ranging from nothing to $78 million.
Three of the scenarios would keep the county in compliance with its current debt policy, at least partially, and could help them keep their prized AAA bond rating.
But the other two, which would draw the least amount from the fund balance, would lead the county to violate its debt policy and could likely lead to a downgrade from at least one credit agency.
Nonetheless, Diorio cautioned that even with the changes, the county’s prized AAA bond rating could remain at risk if the local economy erodes any further.
Fire Harry Jones. Tomorrow.
Over the years I’ve defended County Manager Harry Jones in public and private as a competent manager who seems to have the right goals and standards in place for Mecklenburg County. But his handling of the DSS mess is a firing offense, specifically his move to quiet a critic of DSS by calling the man’s employer to silence him.
Jones has not said why he contacted Bank of America after a local BAC employee complained that he felt “duped” by giving money to DSS’ charitable efforts for kids. That is no doubt because the tone of the email exchange is unmistakable — and chilling.
“There seems to be a need for a wholesale cleanup of many county agencies, and I think that starts from the top down,” BofA employee Harry Lomax wrote to county officials. A week later, Jones sent the email on to a BofA VP with an ominous “Do you know Harry Lomax” addition.
The response was immediate from BofA government liaison Betty Turner. Lomax’s email was deemed “embarassing” and Jones was assured that BofA execs were on to Lomax: “I am tracking it down. I don’t know him – I have alerted charles. Will be back to you.” Question: Who the hell is “charles?” The Uptown paper of record account leaves this out.
Anyone with even a glancing understanding of Charlotte’s history is probably flashing back to the time when uppity mill hands who questioned local leaders were met with, “What’s your name again? I know your pastor.” The threat was clear — shut up and know your place.
Harry Jones clearly has no problem pulling the same power levers as boss men of years past. And no doubt Jones has done this sort of thing before to be so comfortable as to put such a smoking gun in email form, and on such a high profile matter as DSS’s continued money and management woes. For that reason, the “isolated incident” defense we are sure to get this week does not wash.
Harry Jones has proven he does not have the temperament required of highly compensated public employees, particularly at a time when revenues are tight and citizens are concerned about spending. Criticism from engaged citizens — Harry Lomax was concerned that a county Christmas charity was misusing funds — must be welcomed and encouraged, not kick off corporate retaliation efforts among the lock-step Uptown crowd.
A unanimous vote by the Mecklenburg County commission to remove Jones from his position is the only thing which can restore confidence in the notion that local government works for local citizens rather than actively conspires against them.
Update: Betty Turner is a registered lobbyist for BAC in both North Carolina and Virginia.
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Sources: McClatchy Newspapers, Meck Deck Blog, John Locke Foundation, Charmeck.org, Google Maps
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