Monday, February 1, 2010

Miami leaders fear a financial meltdown

Facing a widening financial crisis, Miami leaders are already projecting a $45 million budget shortfall this year that could force the city to deplete its reserves and sell key assets to stay afloat.

Rising costs, slumping property tax collections and ever-growing pension obligations are feeding a meltdown that's now forcing administrators to look for drastic new sources of income not needed since the state took over Miami's books 14 years ago.

``We understand the gravity of the situation,'' said Miami Mayor Tomás Regalado.

The findings harken to the bleak days of the mid 1990s, when it was discovered Miami was using bond money shuffled through various accounts to try to cover a $68 million hole. (more)

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