Neshoba County's August unemployment hit its highest level in nearly a quarter of a century, so it was a relief when city fathers slashed three consecutive years of deficit spending in the 2010 budget, although we could have done without the tax hike.
Deficit spending was reduced from more than $500,000 to $162,084 in the budget, approved two weeks ago, but streets will go unpaved, library books unpurchased and employees without pay raises.
Even as the national economy begins to show signs of recovery, there are mounting concerns over the record number of unemployed in Neshoba County.
The unemployment rate soared to 10.3 percent in August as most other counties along with the state and national averages fell.
Of the state's 82 counties, Neshoba was the only one that had an increase in unemployment in August. The last time the August unemployment rate was higher was in 1986 when it was 12.5 percent.
The city isn't the only one raising taxes in 2010. Neshoba County will raise taxes to cover public school spending as well.
Raising taxes during an economic crisis for any reason is bad public policy and anti-economic development.
With local bank lending tighter than ever, many small businesses are struggling. The entire local economy is at risk.
The city ends its fiscal year today with a nearly $560,000 deficit, slightly over the $506,313 that had been projected. That compares to a $350,000 shortfall in 2008.
Much of the deficit spending can be linked to a $6 million parks project in which a portion of sales and property tax revenues are diverted to repay the loan.
The city in 2010 will divert nearly $300,000 to pay its share of the debt on the parks project as well as unrelated infrastructure improvements for a retailer that were part of the deal.
To reduce the 2010 deficit spending the city cut its share of the operating budget of the parks by about 6 percent, or $6,000, which only hurts the children.
Neshoba County's 2009 unemployment rate through August was 9.8 percent, higher than it's been consistently in two decades.
Pearl River Resort will continue to be an asset, but the days of riding the Tribe's coattails are over.
With a third of our public school students dropping out, the prospect of attracting higher-skilled, higher-paying jobs becomes less and less likely in Neshoba County as expectations are lowered.
But it's likely that even dropouts sense they shouldn't spend more than they take in.
The joblessness could linger in Neshoba County without significant, fundamental change on several levels.
Even the election of a new mayor has yet to result in a clear direction or jobs focus.
Sitting atop $6.7 million in reserves, the city of Philadelphia has ample resources to stimulate economic development and to bring new jobs.
A tax cut would have been a good start.
The national economic downturn either will become just another excuse for record high unemployment in Neshoba County or spur innovation and change, as we believe it will ultimately.
