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     chemistry_set.bmp      Budget Solutions

By Paul "The Gadfather" Norberg--retired CFO----AND---- Katy "The Aging Disco Queen" Miessner


Suggestions for Balancing Vallejo's Budget

Our City Council is now trying to figure out how they are going to balance next year’s budget with a projected $12 million deficit. As the city has already filed for bankruptcy and Judge McManus has issued a ruling that the contracts may soon be set aside, what was the rush to approve new contracts for police and CAMP? The city is bankrupt, so the leverage is on the city’s side. We are now burdened with paying the police union $1 million for voiding the current contract and paying their future legal fees if we try to void any future contracts.

If that was the best the city could do, we need a new labor negotiating team.


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Unions’ flawed Proposals come to light in Bankruptcy Declarations



By Paul Norberg--Retired CFO
(With Glitter Sprinkles from Katy Miessner--Aging Disco Queen)


July 6, 2008 



Now that the city has filed for protection under the bankruptcy act the actual proposals made by the unions have been filed as a public record.  Much of the information was previously disclosed in our analysis of the Rose Report and now the objections filed by the Unions against bankruptcy exposes the flawed reasoning behind their proposals.  And the Union proposal is more of the same that has been offered year-after-year-after-year. They are easing up on the city only enough to balance the budget for one year.


As we suspected, the Unions’ proposal was not sufficient to avoid bankruptcy.  The Unions again are attempting to use their proposal to extend their contracts and bloated pay. The unions’ proposal offers only the smallest concessions; just enough to balance the budget for the 2008/2009 fiscal year. But in return, they demand their contract—currently set to expire in June, 2010—be extended until June, 2014.

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 The Rose Retort



 An analysis of the "confidential" report by Harvey M. Rose Associates, LLC



Paul "The Gadfather" Norberg--Retired CFO
Katy "The Aging Disco Queen" Miessner--Financial Expert


See the Rose Report HERE


The Rose Report dated May 5, 2007 seems to be the same report the Public Safety Unions released to the media on 5/13, in conjunction with their press conference on 5/12/08.  It also seems to incorporate the Unions’ final offer to the city made on 4/21/08.  The City rejected this offer as inadequate to avoid bankruptcy.

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 Image  The Gadfather Presents:  Public Safety Costs

                                            General Fund Fiscal Year 6/30/07 


By Paul Norberg--retired CFO--foreword by Marc Garman


It is with great pride that VIB presents a work of landmark proportions.  This document is a fiscal work of art.  A veritable rosetta stone of clarification.  An earth-shattering literary and factual revelation that dwarfs the works of both Tolstoy and Shakespeare.

Uuuh, okay okay.  If trying to comprehend public safety costs and get the overall picture makes your head fuzzy...this may help.

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Image   Fringe Benefit and Extra Pay Costs


By Paul Norberg--Retired CFO  (With Glitter Sprinkles from Katy Miessner--Aging Disco Queen)


Contrary to Fire Union Vice President and Fire Captain Jon Riley, the cause of out-of-control firefighter overtime is not due to too few firefighters.  The truth is it is actually less expensive to pay existing staff overtime than to hire new employees. Why?


Vallejo’s public safety employees—Fire and Police—are among the highest paid in the Bay Area.  They also have a very generous fringe benefit and extra pay program. In fact it is less expensive to pay existing staff overtime than to hire new employees.  Fringe benefits cost the city about 80% of a public safety employee’s base pay so no wonder the City is unable to hire more staff.  As Riley says, overtime is about 30% of an employee’s salary.  That’s a whole lot cheaper than 80% of an employee’s salary.   The full benefit and extra pay list follows at the end of article. 



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