Mid-Year Budget Report

Today Mayor O’Bannon released the mid-year budget update which projects a nearly 400% growth in the town deficit by 2012.  His printed remarks included: “Pearlville citizens must remember that we inherited a budget deficit during a severe economic recession.  I supported the Council’s resolution to move forward on infrastructure improvements for a better Pearlville that will create or save jobs in the town and the surrounding area.  The deficit projections do not include next year’s 20% increase in assessments for the Green Pearlville Fund, which is expected to cut the deficit in half by 2012.  By law we cannot include assessments which have not taken effect, so obviously this mid-year report is artificially skewed due to that non-relevant accounting factor.  You will be pleased to see a much different forecast in January when the assessment has gone into effect.”

The mayor also took this opportunity to address the unemployment situation in Pearlville: “We are all concerned about the loss of jobs in Pearlville.  Some have expressed concern that Pearlville’s unemployment rate has gone from 4% to 7% in just two months.  Some would say that the rate has nearly doubled.  But let’s look at the big picture.  The unemployment rate for the State of Ohio is 11% compared to our 7%.  The State of Ohio does not have a Green program and has not implemented infrastructure improvements as we have in Pearlville.  Let me be clear.  It is the Council’s commitment to those programs and the jobs they have saved that makes the difference between 7% and 11%.”

GM Files for Bankruptcy

As anticipated, Government Motors filed for bankruptcy today in New York District Court.  The new company will be owned 60% by the government of the United States, 12.5% by the government of Canada, and most of the balance by the United Auto Workers.  Conversation at the Cozy Corner this morning centered on the future of GM and the quality of automobiles that the government will produce.  Art Landsberger posed the question of the day to the breakfast crowd: “In five years will a new Chevy be better than a Yugo?  The unscientific poll of the 20 diners had this result: 12 Yes, 8 No.  Four of the Yes voters added that it would take ten years for a new Chevy to be worse than a Yugo.

Another key question focused on Ford Motor Company: “How is Ford going to compete with the government?”  Bill Redbone was the most vocal in favor of making his next truck a Ford, while Ed Nicholsen asked “Why would you not buy a GM or Chrysler, since our tax money is keeping those companies in business?”  Everyone thought that was a good one.  “What I mean,” Ed added, “is that American taxpayers are keeping them in business.  We have relatives and friends away from Pearlville where they pay taxes, and we should support them.”  While the reaction to this comment was mixed, most agreed that we and the taxpayers will have to see how it all develops.

Charitable Giving Declines in 2009

Reverend Jeepers of the Pearlville Community Church reports that charitable contributions are down 8.5% this year due to the slow economy.  He encourages members to keep up with their annual pledges to the extent possible, reminding us that our donations are tax-deductible and we always get most of it back from the church.  “There is no reason to give a large percentage of your income to the government when the People of Pearlville have figured out a way to keep the fruit of our labors.”  The Wiper concurs.  There is no better system of tax management in the country than right here in Pearlville.