The Mayor’s Magic Maneuver
Never underestimate Bart Peterson. The Mayor is a real smart guy. This is evidenced by his latest contract offer with the Fraternal Order of Police. The police would get a 12-percent raise by 2010, but there is no retro pay. Of course, this plan depends on the Indiana General Assembly passing the Mayor’s public safety finance plan. And that’s what make this so brilliant.
If the cops approve the pact, the Mayor can declare victory. If the police turn it down, the Mayor can say he put the best offer on the table and the cops turned it down and now they’re Frank Anderson’s problem. And if the Legislature turns down the public finance package, the Mayor can say he did his best and blame the General Assembly. So he walk away scott free.
Tactically, this is a brilliant move. It will be interesting to see if the FOP picks up on this and how they respond. Good move, Mr. Mayor. Now if only the rest of your local party could be more like you, what a wonderful county this would be.
Happy Easter.
April 8th, 2007 at 12:59 pm
Hey Abdul,
LOL! I think you nailed it! The Mayor is really out to protect his “pubic” safety! You’re not suggesting something Oedipal, are you? :)
But seriously, at this point Bart has essentially screwed the FOP again. Short of getting some quick assurances from the Legislature on the outcome of the crime bill request, the FOP has no recourse but to accept the offer.
And of course, even a quick look at the safety plan is enough to both raise and furrow some eyebrows. I highly doubt that the measure will pass.
If I were a LEO right now, I wouldn’t be getting my hopes up.
April 8th, 2007 at 10:33 pm
WE DO HAVE A CHOICE http://www.simpson4mayor.com
April 9th, 2007 at 3:45 pm
Abdul, Your assessment is oh so close. But this is the real reason as to why they Hizz Honour is begging and pleading his case to the legislature and offering table scraps to the FOP, IFD and city-county employees for raises. They will be loosing their bond rating due to years of fiscal mismanagement. And it is only going to get worse.
IndyStar.com Columnists John Ketzenberger
April 8, 2007
John Ketzenberger
Bond rating warning sends chill through city’s finances
Bond-rating agency reports typically are dry-as-dust reading, but a recent Standard & Poor’s report was pretty juicy.
It revealed the city’s AAA bond rating is in peril. If it falls, it will cost the city millions more to borrow money and prompt questions from lenders.
The respected analysts put the city’s top-shelf credit rating on “credit watch/negative,” which means if things don’t change the city’s rating will fall.
That got the attention of city Controller Bob Clifford and Indianapolis Bond Bank chief Barbara Lawrence. Indianapolis is one of just five U.S. cities with a top ranking, including Columbus, Ohio; Charlotte, N.C.; Minneapolis; and Omaha, Neb.
“It could impact our cost of capital in a pretty significant way,” Lawrence said. A recent $100 million pension obligation bond, for instance, would have cost $750,000 more with a lower credit rating. So a downgrade could add $15 million to the cost of a $2 billion bond issue the city is contemplating.
Then there’s the loss of flexibility. When the city needed money to pay for more family assistance, “the deal got done in a day,” Clifford said. “Chase did it because we were triple-A and they knew we were good for it.”
The S&P report notes that Indianapolis relies too much on property tax. That’s bad because the city is nearly built-out and there’s little growth in assessed valuation. Growing deficits and $450 million in pension costs on the horizon trouble S&P.
S&P says the solution is further government consolidation and the ability to raise income taxes. You’ve often heard that from Mayor Bart Peterson, who needs state lawmakers’ approval.
Some help may be on the way. Sen. Luke Kenley, R-Noblesville, sponsored a bill that included part of the additional income taxes the city sought. Kenley expressed a willingness to consider other alternatives as the state budget moves toward final passage. He knows what it’s like to lose credit. The state’s rating fell in 2004.
But nothing is certain and that worries the likes of S&P. City officials, too. “It’s a coveted rating, and we’ve fought to keep it,” Lawrence said. The city gained the rating in 1998.
“If we lose the rating,” Clifford said, “it’s not going to come back easily.”
April 9th, 2007 at 4:25 pm
See, Abdul, you’re letting you partisan leanings show through. Peterson proposes a very sensible plan of payment for public safety officers, thinks cities should be financially independent and does the best he can.
It ain’t all politics, my man.
By the way, Simpson for Mayor? For real?
April 9th, 2007 at 7:35 pm
The bond rating is old news. I reported on this a couple weeks ago. People should read this blog more often.
April 11th, 2007 at 8:48 am
S&P ran up the red flag with a report dated Dec. 17, 2004. Is the mayor trying to use this – after nearly 2 1/2 years – to get his way at the statehouse? Or is there a later – worse – report resulting from inaction on the first one?