Bizarro Gavin's alternate universe
By Steven T. Jones
What kind of alternate universe does Mayor Gavin Newsom live in? Apparently, it’s one where you can write your own reality and ignore inconvenient fiscal and political realities.
The last example of Newsom’s tenuous connection to the real world is his announcement today of a “local economic stimulus package” that cuts the payroll and property taxes paid by the business community and offers local businesses $23 million in no-interest loans.
Newsom has yet to say how he intends to close a looming budget deficit of more than $500 million, something he’ll have to do without new revenues considering his opposition to asking voters to increase some taxes. The business community is also opposing that election, but is still demanding more from the public treasury. These people are shameless!
The closest thing Newsom has offered to a budget plan is ordering deep cuts to unspecified programs and proposing to auction off taxi medallions and let developers buy their way out of the condo conversion lottery, both of which will have significant political opposition that Newsom won’t be able to overcome, at least if his past track record is any indicator.
I asked Newsom’s mouthpiece, Nate Ballard, about all this and he hasn’t responded, although he did tell the Business Times that stimulus plan “is totally paid for,” vaguely referring to money the city now receives from the U.S. Department of Housing and Urban Development.
Here’s another reality check for y’all: if you raid existing funds for your giveaway to the business community, that’s, like, not “totally paid for,” dude.
P.S. Ballard got back to me by e-mail just as I was posting and wrote: "Per the terms of the Section 108 loan program we're eligible to pay for the interest out of our Federal (HUD) Community Development Block Grants allocation -- not from the general fund. Borrowers will pay back the principal, thus recapitalizing the fund and allowing us to redeploy."
Again, no word on paying for the rest of their cuts or or the loan principle or showing they understand that using existing funds to pay for something takes those funds away from things that they're now funding.
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