DEVELOPING STORY: Two months into the fiscal year, after approving what Hialeah Mayor Carlos Hernandez promised was a balanced budget, the City of Retrogress announced this week that the city is actually facing a $28 million shortfall and may have to lay off dozens of police officers.
Hernandez blamed the “unsustainable” union benefits as the cause for the gaping hole, saying the city cannot meet its pension obligations. But the city signed contracts with the police union last year that lasts through 2016.
The shortfall hit the news Tuesday after someone leaked a memo from Hialeah City Attorney Lorena Bravo to the PBA explaining that the city can’t meet about half of its $55 million obligation for the police pension for 2014 and 2015.
“After a thorough review of its finances to identify all available sources of savings and revenue, including cuts in services, the city anticipates it is short approximately $28 million,” Bravo wrote, laying out possible solutions that includes layoffs, furloughs and a change in the work week.
But is someone going to tell us the mayor didn’t know this in September when he presented the balanced budget? Can it be that the budget was illegitimate and illegal the whole time? Can someone tell Hernandez that he can’t run the city like he runs his shadow banking business?
Speaking of which, doesn’t he know a couple of people (read: former Mayor Julio Robaina) who could float him a loan? Maybe he’ll cut you a break on the 36% interest.
Gov. Rick Scott failed to suspend Hernandez earlier this year after the sitting mayor testified in the federal trial against Robaina and, under oath, admitted that he was a loanshark, charging 36% interest on at least one loan. Will Scott ignore this obvious fiscal blunder, too?
It’s like the political gods gave the guv a second chance.