home > Columns > City/County> State> editorial

[Editorial] Secret Now, Pay Later?

June 28, 2010

Faced with the prospect of deep, unpopular cuts in public services, it’s no wonder the Jackson City Council is mulling a plan to free up cash in the near term. The city says its proposed debt refinancing would save the city $18.3 million in debt service over the next five years but add $10.8 million to its long-term debt.

Jefferson County, Ala., should serve as a cautionary tale for Jackson’s leaders. That county nearly went bankrupt in 2008, after rising fees from interest-rate swaps—complex derivative deals meant to reduce the county’s debt service from water and sewer bonds—ballooned during the credit crisis.

In response, Alabama Gov. Bob Riley signed a law this April requiring Jefferson County to open any interest-rate swap deals to competitive bids, hold public hearings before engaging in swaps or issuing substantial debt and disclose all payments from the deals. Alabama learned the importance of financial transparency the hard way, and Jackson should learn from its mistakes.

Hinds County offers an example even closer to home. The county Board of Supervisors entered its own interest-rate swap in 2006, and the firm that helped orchestrate the deal says it has brought the county $4.5 million over four years. County officials are hard-pressed to explain how they spent the money, though, and independent audits warn that the county could be liable for $11.77 million if it ends the swap early.

The specifics of municipal finance are hairy, heady stuff, and city leaders must be wary of deals that can leave Jackson debt-ridden for decades. And citizens must stay on top of these deals and demand complete transparency at every step; a lack of attention on our part opens the door to huge taxpayer debt in the future, whether based on unscrupulous deals or simply because the people making the deals didn’t fully understand what they were agreeing to.

For weeks, the Jackson Free Press has asked the city to fully disclose specific details of its negotiations with potential convention center hotel developers. Our fear is that the council will be asked to vote on a proposal before the public has a chance to fully vet the specifics.

This must not happen. It is simply unacceptable to have anything less than full transparency, especially in touchy economic times. The public must help decide whether delayed risk is worth it. Don’t shut us out.

posted by .(JavaScript must be enabled to view this email address) on 06/23/10 at 09:19 PM. [printer version] Share |

COMMENTS

:: recentcomments

May 24, 2012 | 10:18 AM
Bryant Signs Voter ID Bill
DonnaLadd: No, Darryl, no one blocked you. Stop being paranoid. We just typically open comments in moderation during non-office hours. To me, a bozo isn't someone who disagrees with me. It's ...

May 24, 2012 | 06:18 AM
Bryant Signs Voter ID Bill
Darryl: That's funny that you blocked my last comment...

May 24, 2012 | 05:31 AM
Nick Hanauer's 'Controversial' TED Talk -- Tax the Rich?
Renaldo Bryant: So true. This is why critical and analytical thinking are so important to citizens in a democracy. The rich have the power to shape perception ...

May 23, 2012 | 05:24 PM
Bryant Signs Voter ID Bill
Darryl: justjess, you stated "Racism and discriminatory practices continue." What objective data do you have to support this? Calling someone unqualified is a subjective interpretation of ...

May 23, 2012 | 01:37 PM
Bryant Signs Voter ID Bill
golden eagle: Wow, my English was bad on the previous post. You know how it is on these iPhones.

May 23, 2012 | 12:30 PM
Bryant Signs Voter ID Bill
golden eagle: @Jess, I think the word you're looking for is "assassination". @Darryl, do we really know that the majority of MS'ians wanted this, when you consider that this was a ...

May 23, 2012 | 12:18 PM
Bryant Signs Voter ID Bill
DonnaLadd: I can only hope that the reason that this bill passed is that, for once, our lawmakers listened to the majority of Mississippians and crafted this bill. Considering that the ...

May 23, 2012 | 11:57 AM
Bryant Signs Voter ID Bill
justjess: @Darryl 5/23 "....for once, our lawmakers listened to the majority of Mississippians and crafted this bill." My question is still on the table: What were you "majority ...

May 23, 2012 | 05:26 AM
Bryant Signs Voter ID Bill
Darryl: justjess, I can only hope that the reason that this bill passed is that, for once, our lawmakers listened to the majority of Mississippians and crafted this bill. But, recall, that ...

May 22, 2012 | 04:26 PM
One Night at Fenian's
DonnaLadd: ... because if there is anything The Clarion-Ledger can muster the resources to do, it's show up any night of the week and take drunk pictures. Meantime, they crib our sports stories. ...

May 22, 2012 | 03:53 PM
One Night at Fenian's
Rico: Next time just call Metro Mix at the C-L and have them come and take some pretty pictures for the newspaper. Hell, the got some on karaoke night Monday.

May 22, 2012 | 02:07 PM
[Editorial] To Do Its Job, Council Must Show Up
RobbieR: And Chokwe wants to run for Mayor? Hopefully the citizens of Jackson don't fall for this clown's rhetoric.

May 22, 2012 | 01:15 PM
Catholics Sue Over Birth Control Rule
Brian C Johnson: I cannot decide whether this is a vanity lawsuit, in the sense that the bishops know they stand little chance of prevailing in court. Or to put it more charitably, ...

May 22, 2012 | 01:00 PM
Bryant Signs Voter ID Bill
Brian C Johnson: Darryl, I think it is simply a statement of fact that African Americans in Mississippi are less likely to have the required photo ID. If so, the new law is discriminatory in ...

May 22, 2012 | 11:25 AM
Bryant Signs Voter ID Bill
Duan C.: I am in agreement with Golden Eagle - requiring I.D. ties a fee into voting, the only reason why its considered "discriminatory" towards black, is because it places back into an era ...

100 recent comments »

home > Columns > City/County> State> editorial

[Editorial] Secret Now, Pay Later?

COMMENTS

just commented on...

most recent posts...

e-mail newsletter

jfp featured event

Unbroken Chain Benefit Concert

jfp best bets and recommended