ABQ Mayoral Candidate Richard Romero Continues Criticism of Mayor's Budget

Mayor Martin Chavez today signed a city operating budget for Albuquerque, and mayoral candidate Richard Romero responded quickly in a press release. Romero warned that the budget approved by Chavez could lead to difficult financial times for the city. He's been strongly criticizing the Mayor for fiscal irresponsibiity in recent days.

“Mayor Chavez should not be taking money from the city’s capital improvement budget -- money that pays for construction and repair of public facilities -- to pay for basic services and employee salaries,” said Romero. “This is plenty risky considering the economic forecast for the rest of this year and into the future.”

Romero also commented on Chavez administration claims that the city must be well managed financially because Wall Street credit analysts have given Albuquerque favorable bond ratings. “Let’s be clear, taking money from the capital fund to cover operating costs has no impact on our bond rating, but it does have an enormous impact on Albuquerque’s financial future,” said Romero. “It’s great that the Wall Street analysts like us," he continued, "but let’s also not forget, these are the same agencies that gave AIG high credit ratings -- just before the company collapsed and required an $85 billion government bailout.”

Good point. The types of financial data examined by bond rating outfits and the manner in which those data are analyzed is one thing. Bond raters seek to determine whether or not bonds are expected be repaid. Looking at the impacts of taking millions of dollars of property tax revenue out of the capital improvement program to cover a projected general operating budget deficit in FY 2010 is another thing entirely. It's an action that has internal budgetary consequences in terms of a decreased ability to fund much needed infrastructure, roads, parks and other practical projects.

Recommended: Check out Sunday's post at What's the Word with Peter St. Cyr. Peter provides more details on the criticisms being leveled at Mayor Chavez's handling of city budgetary matters by Romero and former City Treasurer Lou Hoffman. He's got audio of their recent press conference about fiscal matters, as well as a clip of the Mayor's long-time public information officer, Deborah James, making the bond rating defense. Also see the recent piece by Marjorie Childress at NMI that provides more info on the accusations by Romero.