Friday, April 2, 2010

Cities Gouge Their Citizens

Cash strapped cities and states across the nation are using traffic citations as a way to ease some of their financial shortfalls. The price of a ticket, including simple fix-it tickets, have already increased dramatically.

In spite of being one of the highest tax states in the country, California wasted no time raising fines. In addition, Governor Arnold Schwarzenegger suggested using "speed cameras" to tap motorists for an additional $400 million and applying that money to the state's enormous deficit. Various municipalities are already gouging their citizens by other means. Los Angeles has doubled its monthly take of traffic fine revenue since late 2007 by increasing ticket charges and installing red light cameras. San Jose is benefiting nicely from new "No right turn on red" signs installed at several freeway exit ramps. (Both cities claim the changes were not made for financial reasons.) Oakland continues to install red light cameras - they now have 11 - and starting in March, a violation will cost $380. Hayward recently added two more cameras and after a 30 day grace period a ticket there will tap the offenders billfold to the tune of $420.

Good old fashioned manual ticket writing also appears to be on the rise. If California cities "strongly suggested" their officers write more tickets, who could blame them? Their backs are figuratively up against the wall: 1) Sales tax revenue normally shared with cities and counties has been reduced or eliminated, and 2) municipal employees are often highly paid and receive huge pensions.

The first is out of the hands of the mayors and city councils, the latter, however, was brought about by their own actions. When times were good, they were only too happy to promise health benefits and pensions that go far beyond those in the private sector. Some are justified - fire fighters and police officers put their lives on the line and deserve to be compensated for hazardous duty. However, they can top out and annually receive 90% of the salary they made when they retired. This is going overboard. After a lifetime of service in the military, for example, the maximum retirement draw is 75% and on average, a career soldier makes less than CA police or fire fighters. And chances of dying in the line of duty are much higher in the armed services.

This is just the tip of the iceberg. Almost all city, county and state employees are slated to collect comfortably large checks for the rest of their lives. Unfortunately, that can't happen unless fewer dollars are spent in other areas or more is collected via higher taxes, larger fines, or more costly regulations (i.e. new permits required or higher vehicle registration fees).

I'm not suggesting that pensions should be cut for existing workers. They accepted jobs with the understanding that they would be taken care of in retirement. Reductions in other areas will likely need to occur. Lower wages and layoffs for non fire and police professions may be necessary. New employees will have to accept weaker benefit packages. These are difficult, but it's already a lot rougher than that for many people outside government. In spite of the massive layoffs occurring throughout California in the private sector, not a single state employee had lost their job as of January 2010.

Because our state and local officials got into office by promising to spend more of the average person's money, cutting costs is generally not in their nature and would upset their special interest friends. In spite of tough times in the non-government sectors of the economy, they need your money. Raising taxes is often politically unpopular, so expect to see other wallet draining tactics. Traffic fines are a favorite because they generally draw little attention. It's no longer about safety, just the money.

StateSnakes.com reports on corruption and big money in state politics.

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