Friday, December 01, 2006

December 1, 2006 More on Hamblen County Debt

Yesterday, I posted information about the county's existing debt and the interest-only debt payments that have been made on that debt for the past several years.

The effect of interest-only debt payments has been largely ignored, but the impact is going to be felt soon in the form of higher taxes as the county moves toward taking on even more debt.

Current discussions center around taking on tens of millions of dollars in new debt at the very same time that the county finally starts to pay down the principal on the forty-million dollars of old debt.

How did we get in this situation?

As former Commissioner Dennis Alvis said, "We've been robbing Peter to pay Paul and now Peter's left town." Yep. Peter woke up and got out of Dodge before all his money was gone.

There are lots of factors behind the current debt. I've mentioned financial problems in Hamblen County in previous posts. There are plenty of problems out there.

False financial information is provided and goes unquestioned.

The Garbage Fund goes broke in early fiscal year 2003 and money is hurriedly switched around to keep it going.

The General Fund goes broke at the end of fiscal year 2003, and the new state auditors come in and help prop up the General Fund by dumping money that was in several small funds into the General (Government) Fund so the bills can be paid.

Later, tax rates are switched around with money taken from the Debt Fund and put into the General Fund---again to prop up the General Fund.

It's all very interconnected. But if you actually try to "follow the money trail" in Hamblen County, you will find that it's a very twisted and tightly-controlled shell game.

Now you see it. Now you don't. Now it's here. Now it's there. Now it's who knows where.

And if you are so unkind as to dare ask where your local tax dollars have gone, well, just don't try that. That's not what a good little taxpayer does.

The government needs more of your money--and no questions, please. The government is going to get that money from you---through property taxes, wheel taxes, sales taxes, special fees, or all of the above---and no questions, please.

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