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Try a real stimulus plan and slash utility rates
MY VIEW
It is quite obvious that small businesses and the citizens of Tallahassee are struggling with the current state of our local economy. In addition, the experts tell us that little will change in the near future.
Based on these facts, it was refreshing to hear City Commissioner, Gil Ziffer, addressing the issue of jobs. As a small business owner, Mr. Ziffer is well aware of the challenges facing small businesses in our community.
However, while his proposal is on the right track, I believe the City of Tallahassee can do more. In my view it is time for a bold proposal to help this community during a time of need.
I propose that the City of Tallahassee cut electric rates for all utility customers by 20% over the next six months. This approach will put approximately $36 million back in the hands of consumers and businesses immediately. This is the most efficient way to stimulate our local economy.
Where does the money come from? The City of Tallahassee has an Electric Rate Stabilization (ERS) fund which has been fueled by the monies collected from all citizens of Tallahassee through the payment of their electric bills. The fund currently has a balance of $95 million.
This fund is not to be confused with the pot of money used to replace and refurbish electric utility equipment. That fund currently has a balance of $29 million.
The reason for the ERS fund is unclear. In fact, the reason for the fund given by the City on it website has not been changed since 2006 and the rationale listed there appears to be outdated. For example, one rationale is to use the funds to subsidize large users if deregulation of the electric utility industry occurs. Deregulation has not been an issue for years.
Also, the outdated policy does not take into account the recent $50 million “investment” in smart meter technology which was sold as a way to avoid the construction of more generating plants. As one of the reasons for the existence the ERS fund, avoiding generation through the smart meter investment should free up millions of dollars.
It seems unfathomable, that while people are hurting financially, the City utility would hoard $95 million in an account with an outdated rationale. This is bad policy no matter the weather outside, but is particularly bad with the recent cold snap that will surely result in more anxiety for cash strapped households and businesses.
It is time for a real stimulus plan. A plan that will not adversely affect the City’s core services or increase our debt. It is time for a plan that simply gives the people their money back during a time when they need it most.
Like Mr. Ziffer, I am also a small business owner and I can tell you that small business owners are tired of token gestures and empty words.
I challenge our City Commissioners – who themselves have set jobs as a high priority – to move beyond words and to take meaningful action and engage in this debate. I encourage them to critique my proposal and to either make it better or offer another one.
But I remind our leaders, time is running out. Local businesses are closing their doors and laying off workers. The citizens of this community need help. What better way to help than to give them their own money back.
This proposal is a change in the status quo. Its about Tallahassee, and its about time.
Steve can be reached at Steve@VoteSteveStewart.com
