Houston is broke

The City of Houston is broke!

The City of Houston is financially broke and it appears that the mayor who takes office in January 2010 may have to captain the City through bankruptcy procedures. (City Controller Annise Parker and former City Attorney Gene Locke - will face each other in a runoff election on December 12, 2009.)

The City’s unrestricted assets were $1.2 billion short of the already recorded corresponding liabilities these assets were needed to pay as of fiscal year end June 30, 2008, according to the City’s latest publicly available audited Comprehensive Annual Financial Report (CAFR). The $1.2 billion shortfall was a result of operating losses totaling $1.5 billion for fiscal years 2004-2008, applying the full accrual basis of accounting used in the private sector.

Apparently the City has no idea as to what has transpired financially since June 30, 2008 or will transpire this fiscal year ending June 30, 2010, on the full accrual basis of accounting. But Robert Lemer, president of Citizens for Public Accountability (CPA), does. Thanks for the info, Bob1

And Mayor Bill White has refused to enact the Taxpayer Bill of Rights (TABOR)which was passed in 2004 with over 200,000 Houstonians voting. If that measure had been enacted, Houston would not be facing this financial melt-down.

Thanks, Mayor White!