City Projects $10 Million Deficit

Moody's may re-evaluate Long Beach's finances in coming days.

Days before Moody’s Investor Service may reevaluate the City of Long Beach’s finances, City Manager Jack Schnirman announced that a more than $10 million deficit, or about 12 percent of the overall budget, is projected for the current fiscal year.

The city expects to close the 2011-12 fiscal year with $10.2 million in the general fund, down from $107,000 last July, according to Newsday. Funds from a collective $4.5 million in tax anticipation and short-term budget notes that the city borrowed last November will cover $1.5 million of the deficit gap, and the city will try to cover outstanding $8.7 million in the proposed 2012-13 budget by April.

Schnirman, who was appointed by a new Democrat-majority city council in January, believes that the projected numbers puts to bed the idea from critics that there is no fiscal crisis, and in regard to the city’s spending and revenue since the general fund was at $7.5 million in 2008, he said:

"You see revenues declining and expenditures going up, and the space between them is really just deficit.”

Moody’s downgraded the city’s bond rating five levels below its previous A1 status on Dec. 20, and said that it would reevaluate the city’s finances 90 to 120 days from that date. In its Weekly Credit Outlook newsletter in February, Moody’s published a “credit positive” article on the city's decision to declare a fiscal emergency on Feb. 7.

Education first March 21, 2012 at 01:58 AM
does he have a bachelor's degree?
Education first March 21, 2012 at 01:59 AM
Do they have bachelor's degrees?
Education first March 21, 2012 at 01:59 AM
does he have a bachelor's degree? I've received 50 phone calls whlie I was away about this.
Education first March 21, 2012 at 02:01 AM
which of these people have bachelor's degrees?
Ellen March 21, 2012 at 03:04 AM
Mr. Corey, can you be a bit clearer on your posts? I voted for Torres, Adelson, and Weiss because of the promises that were made. I did not vote for Sofield or Goodman because I didn't like waht I saw the last year or 2 with them. But your argument is like that of an 8 year old-- "you did it more than we are doing" is not an argument. I was looking for change and for people to uphold their promises and instead, we are getting no change whatsoever and not a single promise is being upheld. New friends and family hired daily, friends getting raises, no transparency when asking about the credentials (or lack thereof) of new hirees with higher wages is not answered. A hirning freeze was established weeks ago but over 10 people have since been hired? The way citizens hold people in public office accountable is through questioning and our votes. Our questions of the last admin were not answered or not answered truthfully and in turn they wre voted out. Now this admin is doing the same exact thing as the last admin, and just as Sofield and Goodman were voted out, so will this administration for all of the broken promises and lies. Please focus your arguments on what is currently going on because arguing with a guy who was on the council 6 years ago isn't helping the cause today, here in 2012.
Richard Boodman March 21, 2012 at 03:40 AM
@ Ellen 11:04 If you go to the LB website and watch tonight's City Council meeting, straight through the "good and welfare" session, you might have a change of opinion, especially when it comes to transparancy. Make sure you look at page 10 of the chart and see what happened to the "rainy day fund" from 2008 thru 2011. 14 million dollars went down the drain. By the way, if you are interested,they are looking for volunteers to help with the city's financial problems.
Max Power March 21, 2012 at 11:29 AM
No, Mr. Dimitri, it means that both you and Mr. Hennessy are mentally ill and should seek professional help.
Castles Made of Sand March 21, 2012 at 12:22 PM
"one compulsive Patch poster", or OCPP - Obsessive Compulsive Patch Posting. There are a few sufferers. Jimmy suffers the worst. Thank you LB Citizen for translating all the misinformation spewed here. While I can appreciate some aspects of Hennessey's reporting/temper tantrums I worry about him too. I would feel awful seeing a young, good looking guy like Jim wandering the boardwalk talking to himself/seagulls saying things like "There's a surplus, I've seen it. That's right, a surplus" over and over again. Jim, really, you make it sound like nepotism is a new concept and gross mismanagement was downright impossible. The previous administration was one of two things, almost completely inept, or, closer to the truth, criminally negligent in their obligations to the taxpayers of Long Beach. Please don't stop with investigative research into the shenanigans of the latest crop of politicians. That much I like to read. However, since I started discussing your Patch blogging/diatribes, I've noticed the common sentiments go from "Hennesseys dilusional" to "Hennesseys a total liar". And that's not good Jim. Stay on top of these guys, but do LB a favor and don't run for office. You were in over your head and it cost us big time.
LB Resident March 21, 2012 at 01:19 PM
The presentation of the deficit is completely laughable. Please FOIL the financial statement ending 6/30/08 and you will see there was never a "rainy day" fund for $14M. That is absolutely absurd. I dont disagree there is a deficit but $10M not true. Its nothing more than PROJECTIONS, nice charts and graphs. The projections are just guesses from a group of inexperienced politicans. Dont embarass yourself...Lets call in NIFA, Moodys, NYS and see what they say...
Candygram for Mongo March 21, 2012 at 01:29 PM
yes - that would indeed settle the debate
Jimmy Hennessy March 21, 2012 at 01:42 PM
This is simply more evidence that City Manager Jack Schnirman and Mandel, Torres, Adelson and others are not being truthful, again. The surplus was NEVER near $14 Million, this is simply a lie to overexaggerate the numbers and further promote Schnirman as a savior while tearing down the city's reputation. The truth will come out and it will show that Schirman is simply being dishonest while Mandel, Adelson, Torres and others sit by and let him decieve LB Residents. Ironically, Mr. Fagen is the one who recognizies what is really going on in City Hall. The surplus that Scnirman says exists in nearly double what independent auditors said it was! He is lying, again!! The surplus was used to offset tax increases on homeowners during the recession. The rainy day fund was used during the rainiest days since the Great Depression. If it hasn't been raining since 2008, what should the surplus have been used for. Mr. Boodman, ou can have your opinion, but you simply cannot invent your own set of facts.
Jimmy Hennessy March 21, 2012 at 01:54 PM
Who is Kim G. Brandeau?? She is another politcal hack from "Crookhaven" who worked with Jack Scnirman in Brookhaven and in Foley's office. She has been helping Mr. Schnirman distrort his numbers on the city's budget problems and she has been assitnintg the new LB Comptroller (Jeff Nogid) with the budgte, becuase he is not qualified to do it on his own. Ms. Brandeau is another carpetbagger like Schnirman who is "passing through" our city, destroying its reputation, and devaluating our homes! She is intrested in only helping advance jack Schnirman; she does does not about LB. -Is she being paid buy the city for her consultant work? -Was she approved ny the city council to work as a budget consultant? -Why is her work on the budget being hidden? -Where does she get teh legal authority to look at the cities fiances if she is not an employee? Google "Kim G. Brandeau" and you will find numerous examples of her handiwork in municipal finance? By why is Mr. Schirman keeping so many secrets?? The more we dig, the more we find....and he is keeping many secrets from us.
Candygram for Mongo March 21, 2012 at 02:31 PM
starting to doubt that this is even Jimmy Hennessy who is posting here under that name
Jimmy Hennessy March 21, 2012 at 03:13 PM
So Schnirman hires Jeff Nogid, who is not an accountant, to be new city comptroller for $20,000 more than the copmptroller he replaced. Despite the fact that Nogid makes $20,000 more than his predecessor he cannot crunch the numbers the way Jack wants, so Schnirman has to hire a Crookhaven crony, Kim G. Brandeau, to do the budget analysis. Did Jack not like the numbers that Nogid gave him? So Schnirman hired someone else to give him the numbers he wants. The entire situation stinks..... and every day more and more comes to the surface. Jack Schnirman is bad news and Adeslon, Torres, and Mandel need to step up on beghalf of the residnets to do something about this. But they can't do anything becuase they gave Schnirman a contract!!!
chris d March 21, 2012 at 04:36 PM
and a very unhealthy police commish out 22 times in 2010 and 15 times in 2011
chris d March 21, 2012 at 04:40 PM
does anyone know when mike fagens trial is starting
Jimmy Hennessy March 21, 2012 at 08:25 PM
SCHNIRMAN CAUGHT IN ANOTHER LIE! In his powerpoint presentation, Jack Schnirman says, "In 2008, (rainy day/surplus) the balance was  $14.7 million."  THis is simply a straight out lie and he needs to be held accountable. The link below is a copy of Certified Independent Audit from 2006 to 2010. The 3rd page is the page for 2008, the year Schnirman is referring to. At the bottom left hand column the independent certified audit cvertified the "Fund Balance (thats is the surplus) at $8,045,311. How does Schnirman get to $14.7 Million?? This is not a small discrepancy, its a $6.7 million discrepancy!!! If he is using wrong numbers here, the entire analysis must be questioned. See for yourself. https://docs.google.com/file/d/0B7_mSHirEbiQOTcxOGI5YjYtMjk1Ny00MTM1LWFlNGYtYmFhYWY2ZWU1Y2Fi/edit Schnirman is highly exaggerating the "fiscal crisis"; he is laying the groundwork for a huge tax increase, he is spending money hiring his cronies from Brookhaven, and he is hiring the family and friends of Adelson, Mandel, and Torres, while he scares residents, hurts out property values, and hurts our ability to borrow money at lower interest rates. STOP THE LIES MR. SCHNIRMAN, PLEASE!
Jimmy Hennessy March 21, 2012 at 11:51 PM
Why don't we debate the issues? If you are so against hiring friends and family you must be really ticked that this administration blatantly broke their promise to you. It hurts when the people you supported let you down, doesn't it? I'll continue to fight for the right thing and get LB going in the right direction again. In the meantime, can you try not to make this personal, lets stick to the issues at hand, in a amicable way. Its okay to disagree and debate, isn't it. This administration made specific promises and they have broken them. What have I lied about? What slander? Please tell us???
Jimmy Hennessy March 21, 2012 at 11:53 PM
Is telling the truth, pot stirring? The truth hurst sometimes Mr. Corey. So again, lets please not make this personal, lets debate the issues that we all face and hopefully we can find some solutions. Its better for us all.
LBLover March 21, 2012 at 11:58 PM
Both parties broke and are breaking promises. A new party needs to be started who are not involved with these clubhouses. Then and only then will we see the change LB wants and needs.
Karen Adamo March 22, 2012 at 03:18 AM
Fran Adelson has done nothing but espouse the positive attributes of Long Beach thruout her real estate career and those real estate professionals(of which you are not one) and her clients, buyers and sellers alike, know this! She has NOTHING to do w/ the recession OR the DEFICIT left by the previous republican administration! Where are they? Not defending themselves. Laying low because they have Jim Hennessey who hasn't been in office for years hiding behind his computer spewing vicious lies about the financial state of the City like a recluse writing poison pen letters from their typewriter! Jim,why didn't you speak up IN PUBLIC at the City Council meeting? The bad press is coming nout NOW because the republicans lied and anyone who doesn't see that doesn't have the facts or is DELUSIONAL!!!!!!!!!
Karen Adamo March 22, 2012 at 03:22 AM
Did you miss Moodys downgrade after the republican coalition"s(co-illusion) tenure?
Karen Adamo March 22, 2012 at 03:24 AM
It takes one to know one Jim and I'm done w/ this bs for tonight!
Karen Adamo March 22, 2012 at 03:59 AM
Shouldn't you be in class or working on your lessons?
Karen Adamo March 22, 2012 at 03:59 AM
Shouldn't you be in class or working on your lessons?
chris d March 22, 2012 at 02:54 PM
does anyone know what part of long beach con man fagen is in because he doesnt live in the west end like his profile says he lost that house to the bank and this is someone we want on our council. also wasnt he part of the council when we had this rainy day fund
chris d March 22, 2012 at 02:54 PM
this new council is using the obama handbook just blame everything on the past
MAG1215LB March 23, 2012 at 03:15 AM
He has experience! Something that the Sofield admin. never had. Jimmy go take your meds and bring out Margret I'll explain it to her too! Yes it costs more to hire somone that knows what they are doing. If they save you more then what you spent that's a good move. Whats this I hear about Tommy Canner? Did they fire him yet?
MAG1215LB March 23, 2012 at 03:46 AM
Didn't you say we had a surplus of $107,000 in feb and that there was no deficit? That it was all a fiction, a plot by the Dems! You and Sofied couldn't keep the books straight for a girl scout cookie sale! Go take your meds and work on your class work plan. The kids will believe you if anyone. Ve
Candygram for Mongo March 23, 2012 at 12:53 PM
And rightfully so


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