Sunday, October 5, 2008

How will the Credit Crunch Effect Teaneck

As Teaneck news is slow, I haven't posted in a while.

In looking back at the last several weeks and months on wall street, here are some observations of how i feel Teaneck will be effected by the credit crunch. My degree is not in economics, so allow me some leeway.

1- State aid will drop as state revenues fall.
2- Borrowing and bonding costs will rise significantly.
3- Local home assesments will drop- we wont have a reval of course but individual tax protests will skyrocket, and rightfully so.
4- Demand for higher end houses will plummet, as many of the bankers and market makers who purchase them will tighten their pockets.
5- Home renovations will slow, both as a result of homeowners tighten their belts and home equity lines drying up. This will cause permit fees to sharp, followed by the usual assessment increases to vanish.
6- Fill in your comments here.

I can think of no better person to run this ship then Mayor Feit. As we saw over the 2007 and 2008 budget season, he will rip the budget apart line by line, as will Gussen. We will need the rest of the council to jump on board (Monica- just skip those meetings).

As I like to compare Teaneck to NYC, I see Mayor Katz as Mayor Giuliani, both whom i loved. These captains got the boats out of the storm and heading in the right direction. Mayor Michael "Bloomberg" Feit now needs to keep the engines on cruise when everything around will try to send it back into the storm.

The biggest challenge- getting the Board of Education to finally follow suit. I URGE Ned Goldman to head back into that forum, and Alan Sohn to put his positive traits to work ripping that budget into shape 2008 style.

26 comments:

esther said...

Why do so many people adore Rudy Guiliani? He's such an ill-tempered, arrogant prick who took credit for changes in New York City that happened in spite of rather than due to his influence.

If I were Katz or Feit, I would be insulted to be compared to Guiliani.

Bloomberg, on the other hand, is an excellent mayor.

I think you outlined many of the possible outcomes of this mess for Teaneck.

Anonymous said...

Leeway? If you want leeway don't say quite as many stupid things. Just because Gussen is a friend of yours don't pretend he can help with a real budget. He's as stupid and arrogant as you.

Anonymous said...

Just a wee correction--"effect" with an e is either a noun or a verb meaning "to bring about." You mean "affect."

Karin said...

I look forward to seeing how well this current council curbs spending. I would also love to see how the BOE in light of the current economics curbs its budget.

Anonymous said...

I'll be beyond surprised if the BOE curbs any spending.

Out Of Rightfield said...

One benefit: Less McMansions

2008anony said...

As luck would have it, the BoE right now is at work (or at least should be) on the largest single spending line item in Teaneck (both town and BoE) - teacher's salaries (with benefits, it equals at least 25% of spending and probably closer to a third).

Although a copy of the current teachers' contract was dropped from the website when it was redone, if memory serves, the contract expired at the end of the last school year and no new contract has been announced.

If the recession, economic slowdown or whatever it was called in 2000/1 is any guide, the BoE will be totally oblivious to the macro-economic conditions and continue to keep Teaneck's teachers at the top of the salary charts. I would love to be pleasantly surprised, but I am not holding my breath.

Anonymous said...

Well if the BOE does not want to make cuts then I would think that the residents voting on the Budget just may say NO to it!

2008anony said...

By the time we get to the next Budget vote, the damage is likely to be have been done. The new contract is likely to have been signed by then and 3 more years of generous increases to already best-in-class(no pun intended)salaries will already be in place.

Anonymous said...

OH NO...the people of teaneck may vote 'no' on the budget!

From what I understand, it then goes to the Council to make cuts.

From there, the BOE appeals to the State Dep't of Education, which basically gives them everything they asked for but takes off about $50,000 to appear 'fair'.

End result - BOE keeps spending our money with very little accountability.

Anonymous said...

So basically the BOE answers to NOBODY!
Nice how can I get a cushy job over there?

Anonymous said...

well, since it is an elected BOE, you simply have to get - elected!

Anonymous said...

no matter what your politics are you must support the Municipal Open Space Trust Fund!Vote YES Nov 4!
It's a savings account, it's our kids and grandkids future.

Anonymous said...

The only thing I like about MOST are the state matching funds. Otherwise its just another tax pushed on new jersey...

Anonymous said...

Municipal Open Space Trust Fund, what is the tax rate for this? What does it do? Why should I support it?

Anonymous said...

good questions:
1-you are already paying it, one penny on every $100 thats $40 on a $400000 home.
2-Since it's inception in 2004 over $.7 million has been raised and $400000 was used for the new all inclusive playground specifically designed so that children with special needs could play there.
3-With it, the Township can have access to matching funds offered by the State, without it you can't even apply!
4-It is a forced savings account for the Township to help pay for the acquisition of open space, historic presrvation and recreation amenities.

Have more questions about it? Oct 30 Rodda center 7:30PM

Vote YES for MOST.

Anonymous said...

sorry that's 1.7 million

Anonymous said...

I thought the all inclusive playground was paid for by a grant obtained by Elnatan Rudolph.

Anonymous said...

No the grant only covered a SMALL portion, WE the taxpayers made up the rest of the cost!

parkieman said...

The MOST paid $400000 toward the playground the rest was the grant from Rudy.

Anonymous said...

So the taxpayer paid $400k and the grant covered if I am correct about $100k.

Anonymous said...

Vote against the Municipal Open Space Trust. The Council has not followed the recommendations of the MOST Advisory Board. The purpose of this fund was not to build playgrounds but to preserve open space. What open space has the town added using the funds from MOST?

Anonymous said...
This comment has been removed by a blog administrator.
Anonymous said...

sorry anon , but you are wrong! the MOST is for open space acquisition, historic preservation and recreation. Just cause you did not get your way you are going to cry and pout then shoot your own foot off. If you ever want a chance at any more open space in Teaneck you had better man up and vote for the MOST. Change the process,complain to your council but don't throw away the ONLY opportunity we'll get to acquire additional open space.Vote YES on NOV 4. Are you willing to throw away a chance the future to save $4 a month HELLOOOOO!.

Anonymous said...

The last thing we need is a Board of Ed preparing budgets like the Council did.

Gussen and Rude worked with recently neutered ex-mayor Catz to push through a phony budget that pushed millions from this year to next year so that Team Catz could claim a zero tax increase budget. Thank G-d voters didn't fall for it and voted Rude out on his ass.

Now that the financial crisis has only worsened, these bills for tax appeals and lawsuit settlements have already come due. The Catz Council tried to tell you they knew what they were doing but they ignored the manager and residents. We have already paid bills this year that the council said would cost us nothing.

Thank G-d Mayor Feit had nothing to do with this budget fraud. We need someone like Feit to clean up this mess. We need to vote ex-mayor Catz and dog-friendly Gussen off the council and send them to the pound where they belong.

Is there a no-kill shelter in Bergen County?

Anonymous said...

Feit was totally involved in the budget process.