Date: Wed, 13 May 2009 11:32:28 -0400
From: [email protected]
To: [email protected]
Subject: The General Motors Business Model will not work for Government




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          Most people are not aware of the real reason General Motors went from 
the number one company on the planet to insolvent in a few decades. The reason 
has nothing to do with cheap foreign labor (GM's competitors build many of 
their cars in the US) or the quality of the cars. The reason GM is insolvent is 
the company supports 600,000 retirees with only 165,000 active workers. Pension 
costs and retiree healthcare benefits drove GM out of business.
            
          Your local government has the same business model. Government workers 
can retire in their mid 40s and receive guaranteed pay checks until their 90s. 
Right now there are about 1,200,000 government workers in Florida and the 
number of retirees will soon be greater than the number of active workers. Your 
local government is headed down the same path as GM. But instead of ruining a 
car company we will destroy our local economy and lower our standard of living.
         
          Just a year ago, GM had $15 billion in the bank. They put $29.9 
billion in a retiree health care fund in 2008, and borrowed a similar amount 
from the taxpayers in 2009. Your local government has the same business model 
as GM, except government's primary revenue is taxing small business. In the 
past six years small business has seen taxes triple, fees quadruple, and 
utility rates increase at many times inflation. The end result is no surprise; 
more business failures.
          
          But like GM the problem never disappears, it hides during periods of 
economic growth and comes back with increasing severity. Because of Save Our 
Homes it is mathematically certain your local government will continue to force 
small business to fail at an increasing rate. Putting numbers to the problem, 
State and local government spending was $93 billion in 2002. In 2006 that 
figure increased to $151 billion. Because of Save Our Homes most of the 
additional $58 billion burden fell on small business. 
           
           Our future is a repeat of that cycle until only the strongest 
businesses will survive, unless we systematically change our local government 
business model. We are leaving our children a state with no future opportunity. 
Just as most people knew GM was in trouble decades ago your local economy has 
the same future without reform. Your local government has the same union salary 
and pension problems, and our economic future is the same as GM. 
           
           The time has come to stand up to the government labor unions and 
save the future of our State. We need to reform salaries so civil servants do 
not make twice the wage of the average taxpayer. We need to reform health care 
benefits, and we need to reform the pension plan so it does not bankrupt our 
economy.
          
            The next 15 months will see more challenges as unemployment will 
rise above 10% in Florida. At some point the taxpayer will realize small 
business is the way out of this economic mess and demand government reduce the 
burden on small business. Will our current group of elected officials listen?
         
            So far they have raised taxes in a recession, doubled parking fees, 
increased utility rates 20%, and added new fees. When most businesses are 
losing money today, these actions have only put more people out of work. There 
are one million small businesses in Florida. If each one hires just one person 
unemployment goes to zero. If they each lay off one person unemployment goes to 
20%.
     
            So, my fellow taxpayer, you decide. Is your local government 
working for the best interests of the taxpayer, or is it funding its own 
General Motors? Does anyone think it is fair taxpayers are working into their 
70s so our civil servants can retire in their 40s?

           If this concerns you, please join us at the July 4th Tea Party, 11 
a.m. on the north side of the Amway Arena (downtown Orlando). 
            
          Let's fix this mess and leave our children with a better future. 
                       Matthew Falconer 
Orange County Taxpayer Budget Review Board
www.TaxpayerBudgetReviewBoard.org
www.LowerTaxesNow.org
[email protected]

       
        


        
            
                
                
        



        
        
        



        
                        
        
                


        


  
        
    

  









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