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Nazareth, Pa., United States

Wednesday, August 11, 2010

ET: Bethlehem's '09 Budget is $8.5 Million in Red

At his Congressional web page, Bethlehem Mayor John Callahan brags that he's balanced six budgets. Better make that five. On Thursday, I told you that Bethlehem's annual outside audit would reveal a $8 million shortfall in 2009. It's actually $8.5 million, according to The Express Times.

Last year, a brand new firetruck sat unused because the City was unable to pay for it. It had borrowed money for the purchase, but had to dip into that fund to pay operating expenses. But that's minor compared to what Lynn Olanoff reports. Last year, the City was also late with a $2 million pension payment, which cost it $158,000 in interest.

I'll be at today's City Council Finance Committee, and will give you a more detailed report tomorrow.

In his 2007 State of the City address, Callahan actually claimed, "[W]e need to give a direct financial return to all of our taxpayers in the form of a tax cut." That appears unlikely anytime soon.

Now if only he could ask Clinton for $8.5 million ...

14 comments:

Anonymous said...

Is there a municipality in the country that is not experiencing major financial problems right now? I think the projection for 2011 in order for municipalities to meet budgets is 500,000 layoffs nationwide.

What John said in 2007 at the height of the bubble economy really can't be used too much against him seeing that it was in a period before Tax Revenues nationwide hit a major brick wall in the 2nd Great Depression we are in.

Seeing that Alan Greenspan, Ben Bernake, Hank Paulson, George W. Bush, John McCain, Barack Obama, Charlie Dent, and a whole host of others didn't see the Great Depression in either political party (John McCain the fundamentals or our economy are fine if you do recall), you are going to bash John for not seeing it?

Seems silly.

Anonymous said...

if he knew the revenues were not coming in why didn't he start tightening the city's belt long before?

he's not johnnie casino he's johnnie too little too late

if he can screw up this badly in little old bethlum just think how much damage he can do in congress

Anonymous said...

Probably because everyone from the Federal Reserve, CNBC, and the current Administration were saying things were getting better and to not worry.

John was just behaving like every other politician in the country, republican or democrat in 2009.

Not really pro-John.

I have to laugh, there was a guy on the ballot in CT, who actually predicted the housing crisis almost to the date. Peter Schiff. Now while I disagree with a few points with Peter, he at least has a track record of understanding the problem we are in. He lost to the WWE's Linda McMahon.

At this point, when voters have a choice between someone who predicted the economic crisis and a circus owner's wife, and they choose the circus owner's wife. There is really no hope for the Republic.

Anonymous said...

Council is "concerned".

They should be. Most are JC's lackeys, bought and paid for. Their review will be a joke while they run for cover. Council is supposed to have oversight. Are they blind?

What the the City Controller doing? Painting her nails?

RS said...

Balancing a budget is easy. Jusst increase the amount in the revenue stream. Look at Allentown. Of course, actually living up to it is another story.

Budgest are like a politician's promise: it sounds good and is ever so easy.

Anonymous said...

New movie showing in Bethlehem

SMOKE AND MIRRORS

starring

Jonh Callahan

Anonymous said...

There was this little thing they called a "recession" in the country that effected most businesses and state and local governments. You might want to google it.

Anonymous said...

Meanwhile, the economic engine is churning in Bethlehem. Slate Belt? Allentown? Easton? Yawn.

Anonymous said...

The economic engine? You mean all those new boutiques with all those $20/hour jobs?

Oh, that's right, they have MUSIKFEST and the johnnycasino's casino.

Chugging right along...

Anonymous said...

Instead of worrying about his next job, he should finish and clean up the job he already holds.

Patrick McHenry said...

To all the Callahan apologists:

So if Callahan has no responsibility for city finances now that Bethlehem has a deficit, I guess he had no responsibility when the budget was balanced?

Really, stop trying to have it both ways.

The problem is that we are spending too much. Like it or not, in his Congressional race Callahan is backed by those who are spending us into oblivion.

The only chance for improvement is to re-elect Dent and hope enough other Republicans are elected nationally to put the brakes on Obama and Pelosi.

No way Callahan stops the spending.

P.S. - Regarding CNBC: Anything ending in "NBC" is pure propaganda. They've actually been saying the economy is recovering. It's not!

Anonymous said...

While this is happening to Bethlehem, watch the same thing happen to many many LV munis. The others are going to be forced to cut, cut and cut, almost to the point of non existent governmental service. Or, they will need to raise taxes. Pretty simple folks. Borrowing money to pay costs is bad business.

Anonymous said...

But, Geeting says those wascally wepubwicans are evil for wanting to pay for expenses when we can just add it to the debt.

Maybe Jon can get the currency destabilizer to pay. After all, he has way more money than Obama thinks anyone needs.

Anonymous said...

jc was a drug salesman. what do you expect? only thing he can mannage is getting his relaitives off the hook and drinking. maybe the villanies can contribute some of their ill gotten money to the 8.5 lord knows they benefited from it