Jingzhou City's Fiscal Expenditure

After Li Dakang returned to his office, Lin Yanzhou's speech at the provincial government-both farsighted and grounded in reality-kept replaying in his mind. It had given him a new approach to economic development and broadened his vision of its future.

His ability to stand firm in Handong's political arena depended on far more than boldness and a tough stance. More importantly, he had a keen nose for shifts in the wind and the pragmatic drive to seek change.

In his heart, he already had his answer. If he put Lin Yanzhou in charge of the Guangming Peak Project, the results would change heaven and earth. Jingzhou's future might become something even he dared not imagine.

Li Dakang was also considering exactly what mission had brought Lin Yanzhou to Jingzhou. It would determine whether they had a chance to join forces.

However he turned it over in his mind, he could not see Lin Yanzhou posing a threat to his next bid for governor.

At present, Lin Yanzhou was only a mayor, at the early stage of his deputy-ministerial career. The safest path forward would be to succeed him as municipal Party secretary and join the provincial standing committee. With his unfathomable backing, he would then also take on a deputy Party secretary post before naturally succeeding to the positions of governor and Party secretary.

There was another route: if the provincial executive vice governor or a standing-committee vice governor post became vacant early, he could move directly from mayor into either position, then gradually advance to governor and Party secretary.

If Li Dakang still had not become governor by then, their interests would clash, leaving little possibility of cooperation.

Lin Yanzhou had only just taken office as Jingzhou's mayor. Given Governor Liu's age, if he failed to advance in the next term, he would certainly have to retire.

By then, Lin Yanzhou would almost certainly not go straight from mayor to governor. If that was what the higher-ups intended, they might as well have made him governor directly when he came from Menxia. Why bother with the extra step of sending him to Jingzhou?

Besides, Lin Yanzhou had no experience as a municipal Party secretary. That fell short of the requirement for experience across multiple posts and left him lacking experience in a key position, unless he received an exceptional promotion.

After this analysis, Li Dakang felt that Lin Yanzhou's arrival in Jingzhou was, instead, his greatest opportunity.

As long as he controlled the overall direction and gave Lin Yanzhou free rein over the economy, someone with Lin Yanzhou's background, ability, and age would have to produce results to pave the way for his own future.

As municipal Party secretary and head of the team, Li Dakang would receive his share of the credit no matter what. He could ride this autumn wind straight into the governor's office.

What moved Li Dakang most was that Lin Yanzhou had demonstrated not merely a specific solution to the shantytown redevelopment problem, but an entirely new governing philosophy and operating model better suited to future development trends.

If this model succeeded, it would bring not only social stability but sustainable, high-quality development. That was precisely what the provincial Party committee, and even higher authorities, wanted to see, and it would lay the foundation for his pursuit of a higher position.

This was also precisely his weak point. He had previously believed he knew a thing or two about economic development.

That had been before he met Lin Yanzhou or saw the achievements of other cities that had excelled in reform and opening up.

After seeing their governing philosophies, Li Dakang, as a mature politician, quickly understood that this approach to economic development best suited the country's conditions.

The more Li Dakang thought about it, the harder it became to suppress his smile. He felt his idea was truly perfect. Once two strong players joined forces, Gao Yuliang would be no match for him at all. Gao Yuliang's weaknesses were even more pronounced than his own.

Li Dakang called his secretary. "Please ask Mayor Lin to come over when he has some free time, and clear my schedule."

After hanging up, the secretary could barely process it. Since leaving the provincial government, her leader's attitude toward Mayor Lin had taken a complete about-face. He seemed especially respectful toward him, and that forceful personality vanished whenever Mayor Lin was involved.

For a while, it made him wonder whether the two were brothers. They were like a couple in the throes of romance.

But jokes were jokes. He knew Li Dakang's working style: if he delayed carrying out an instruction for even a moment, he would get an earful.

Taking the latest contact directory from the drawer, she could only remember Chen Mo's number. He was not yet familiar with the newly appointed Li Ze, so this was also an opportunity to establish contact with him.

Once the call connected, she spoke first. "Director Li, this is Jin Jianwen from the municipal Party committee office (the secretary's name has been changed to Jin Jianwen; I previously remembered her being called Wu Caixia in the original drama, but I must have remembered wrong). Secretary Dakang would like Mayor Lin to come over when he has time. Please check the mayor's schedule and let me know."

Li Ze checked the incoming number again. After confirming that it was listed in the directory as the municipal Party secretary's secretary's number, he suppressed his questions. "Director Jin, please give me a moment. I'll consult the leader right away."

With that, he turned and entered the office. "Sir, Secretary Dakang's secretary called. Secretary Dakang would like you to visit his office whenever it's convenient. She didn't tell me any specifics over the phone."

After speaking, Li Ze picked up Lin Yanzhou's cup to refill it. Lin Yanzhou put down his pen, took out a cigarette, and lit it.

He and Li Dakang had parted only a short while ago, yet now Li Dakang was suddenly inviting him over again. He had not called him directly, either, but sent the message through his secretary.

That made him feel that this conversation probably involved nothing major or urgent.

Strictly speaking, he and Li Dakang were not in a clear superior-subordinate relationship; they were partners on the leadership team. They normally communicated directly by phone. Messages went through their secretaries only for meeting notices, decisions already made by the municipal Party committee that required implementation by the municipal government, or irreconcilable differences between the two principal leaders.

After thinking it through, he concluded that it probably still concerned shantytown redevelopment and the Guangming Peak Project, since those were the matters on which they had just exchanged views.

Lin Yanzhou picked up his cup and checked the time. "Reply to Secretary Dakang: I'll be there at three sharp."

"Have the office send the latest materials on the Guangming Peak Project and the Jingzhou Zhongfu Shantytown Redevelopment Zone to my office in ten minutes."

In less than ten minutes, Li Ze came in carrying stacks of documents. As Lin Yanzhou searched through the Guangming Peak Project materials, he also told him to ask Finance Bureau Director Liu Yongning to come over with the fiscal data.

Then he devoted himself to reviewing the Guangming Peak Project materials. He learned from them that the entire Guangming Peak investment totaled 48 billion yuan (still following the original drama; the television version used 28 billion yuan, but everything afterward will use 48 billion yuan), making it Jingzhou's largest current investment project.

The "Guangming Peak Project" did not refer to a single project, but to a colossal integrated urban development project. It could be understood as a grand-scale "new city construction" or "central business district (CBD) construction" undertaking.

A project like this was a breeding ground for corruption, a typical "GDP above all" real estate development project. Once real estate development was involved, it would entail changes in land-use classification as well as infrastructure and supporting investment.

Most importantly, 48 billion yuan could not possibly support the construction of a new city. A few residential buildings, shopping malls, commercial complexes, and supporting facilities would drain it dry, even before demolition compensation and other costs were included.

Any enterprises able to invest would certainly be covered by various preferential policies, the most important of which concerned loans, interest, and taxes.

Those same policies would draw on Jingzhou's future finances in advance, while maximizing the present value of the land and the project.

For the next several years, or even longer, the project would not bring Jingzhou tax revenue equivalent to its land-transfer proceeds.

It would also drain bank funds and public finances, allowing investors to use leverage to move an even bigger board.

It would be fine if these enterprises developed soundly. But enterprises without core competitiveness that relied on monetizing property would be in great danger once policy support disappeared.

Li Dakang was killing the hen to get its eggs, trading away the room available to several future leadership teams for his own success.

No wonder the places he governed struggled to keep developing or reach new heights after he left. It had to do with his working methods.

The deeper Lin Yanzhou read, the colder his heart grew. Dafeng Factory's site, for instance, had originally been industrial land. The Guangming Peak Project now intended to convert it to commercial land, yet the transfer price remained that of industrial land.

The demolition compensation and urban planning were also extremely unreasonable. The entire new city had no core investment-attraction targets, nor any clear strategic plan or blueprint. It simply copied the experience of coastal regions wholesale.

Given the amount of office space planned, large areas might sit vacant. Jingzhou was still a traditional city in a period of reform, with very few high-tech enterprises moving in. Factories remained its mainstay.

The Guangming Peak Project was surrounded by labor-intensive enterprises and residential areas. Add office space on such a massive scale, and if it really filled up, the surrounding roads would probably be jammed all year round.

Then there was the plan to build international conference halls and other facilities at the Guangming Peak Hotel to international five-star standards, enabling it to host major international and domestic conferences and forums. With its current single-hotel setup and surrounding environment, those requirements would be hard to meet. It could produce the absurd situation of taking an hour to travel a few kilometers in traffic. How could facilities like that attract groups to hold conferences, unless the surrounding shantytown areas continued to be demolished and traffic conditions overhauled?

About an hour later, a knock came at the office door. Finance Bureau Director Liu Yongning had arrived.

Lin Yanzhou motioned for him to sit first. Several more minutes passed before Lin Yanzhou finally put down the document in his hand.

"Comrade Yongning, I called you here because I want to understand Jingzhou City's current fiscal situation."

Liu Yongning handed Lin Yanzhou his briefing materials. "Mayor, this year's citywide public fiscal budget expenditure is 88.16 billion yuan, or approximately 88.16 billion yuan.

"Public fiscal budget expenditure at the municipal level is 33.1 billion yuan, or approximately 33.1 billion yuan."

"This year's citywide public fiscal budget revenue is 73.316 billion yuan, or approximately 73.32 billion yuan."

"Through subsidies from higher authorities, drawing on the budget stabilization fund, carrying expenditure forward to next year, and other measures, I'm confident we can balance revenue and expenditure for the full year."

Lin Yanzhou's brows knitted tightly after hearing this. On these figures, this year's fiscal shortfall alone was 15 billion yuan. Expanding the Guangming Peak Project and getting everything done properly in one go would be rather difficult.

But without changes, the 28 billion yuan might fail to produce results and could even be thrown into the water.

Seeing Lin Yanzhou's difficulty, Liu Yongning spoke again. "Sir, how much do you want to use? I'll see whether I can arrange something."

Lin Yanzhou knew Liu Yongning had misunderstood him, but he was pleased nonetheless. If the keeper of the purse strings was not of one mind with him as mayor, he would have no way to carry out his work.

"Comrade Yongning, you've misunderstood. For now, I'm just looking at the fiscal pressure. Go on and tell me about the major expenditure categories so I have a sense of things."

"Mayor, in accordance with the spirit of your instructions, we'll give greater priority to public welfare in fiscal expenditure during the second half of the year."

"Education expenditure is 14.389 billion yuan; science and technology, 4.248 billion; culture, 1.587 billion; social security and reemployment, 8.083 billion; medical care, 5.53 billion; energy conservation and environmental protection, 1.712 billion; urban and rural communities, 13.49 billion; agriculture, 6.2 billion; transportation, 4.124 billion; and housing security, 2.857 billion."

"This year, the main budget increase is in urban and rural community expenditure, one of our largest spending categories. This is mainly based on your instructions. Regarding urban infrastructure construction, maintenance, and management, such as roads, bridges, drainage, sanitation, and landscaping, Mayor Wen, Secretary Dakang, the executive vice mayor, Mayor Ding, and other leaders issued important instructions requiring an increase in this budget. Following our comprehensive assessment and dedicated investigation, the relevant equipment in our city has reached the point where replacement and renewal are unavoidable."

"Housing security funding is focused on affordable housing projects, including construction and subsidies for low-rent housing, public rental housing, and affordable housing, as well as shantytown redevelopment. After all, the Jingzhou Zhongfu redevelopment issue remains unresolved. After District Chief Chen Mo surveyed the affected households, he submitted a research report. Mayor Wen also believed rectification could no longer be delayed. After meeting with the executive vice mayor, he asked us to increase the budget. I added another 200 million yuan on top of the full-year budget to address the public's most urgent problems. I plan to raise it further when preparing next year's budget."

Lin Yanzhou immediately stopped Liu Yongning. If he kept going like this, pouring money into every project Lin Yanzhou paid attention to without regard for cost, there would be no development in any other field.

But he also knew they meant well. In fact, Liu Yongning had taken a considerable risk by doing this. After all, Lin Yanzhou had not known about it. It fell within the responsibilities of the executive vice mayor and the deputy mayor overseeing the area, and increasing the budget was reasonable, legal, and compliant.

Even if something did go wrong, it would not land on his head. So he could not criticize them harshly and dampen their enthusiasm.

"Comrade Yongning, I have a general understanding of the specifics now. How much funding is currently available?"

Liu Yongning thought for a moment. "Sir, if it's for you, roughly up to 200 million yuan. If it's for someone else, probably only around 70 million."

Lin Yanzhou tapped his fingers on the desk. "Comrade Yongning, mind the implications of what you say. Be more specific."

Liu Yongning immediately replied with a serious expression. "Mayor, we currently have 700 million yuan available. Of that, 80 million is earmarked for Qingshui River pollution control, 200 million for Jingzhou Zhongfu shantytown redevelopment in Guangming District, 200 million for public toilet construction and landscaping renovation citywide, 50 million for the municipal Environmental Protection Bureau's dedicated pollution-control efforts, and 20 million for stability maintenance and equipment replacement in Guangming District. After salaries and miscellaneous expenses, only 70 million yuan is freely available."

"However, the Environmental Protection Bureau and Guangming District's earmarked funds total 70 million yuan, and you can mobilize those at any time."

"Taking another 60 million yuan from urban construction and shantytown redevelopment wouldn't affect the overall situation. So if the municipal government needs it, 200 million yuan can be in place today."

Lin Yanzhou wanted to laugh but could not. So the entire second-half budget had gone to people Liu Yongning considered his own.

"What's this about Guangming District's stability-maintenance and environmental-control funds? How come I don't know about them? And does landscaping renovation need that much money? As I recall, even for Zhongfu, I never told you how much to set aside, did I?"

Liu Yongning immediately produced a slip and pointed to Lin Yanzhou's signature. "For the Jingzhou Zhongfu Shantytown Redevelopment Zone, after District Chief Chen Mo took office, he submitted his research report. Mayor Wen endorsed it and forwarded it to you, and you signed it."

Only then did Lin Yanzhou remember. When he took Chen Mo to assume his post, he had promised him support. Wen Zhiyuan had mentioned it when he came over, and Lin Yanzhou had looked it over and signed it.

After all, Chen Mo was his own secretary and had gone there to solve problems for him. He could not help him with personnel matters, but he could still offer financial support.

Besides, shantytown redevelopment did need to move forward gradually so the public could see hope, so he had approved it.

"What about Guangming District and environmental control, then?"

"Guangming District submitted a request for stability-maintenance funds. Municipal Public Security Bureau Director Zhao Donglai agreed and went to Secretary Li Dakang to coordinate it. Both the executive vice mayor and Mayor Wen signed it. When it was forwarded to you, you said that since Secretary Dakang had agreed, we should carry it out directly."

"For the dedicated environmental-control funding, Mayor Wen instructed the Environmental Protection Bureau to follow the spirit of the on-site meeting on Qingshui River pollution, draw broader lessons from the case, and conduct self-inspection and rectification. The bureau submitted its request for approval based on the meeting's directives. Mayor Wen, Mayor Ding, and the executive vice mayor all signed their approval. After it was forwarded to you, you said to proceed according to their recommendations."

"You also approved the landscaping renovation plan. Later, it even drew Secretary Dakang's attention. He reviewed it too and wrote that nothing concerning people's welfare was a small matter, instructing the former bureau director, now Vice Mayor Zhao, to expedite the allocation in accordance with the spirit of your instructions. Afterward, you directed Mayor Wen to coordinate all the arrangements."

Looking at the slips and written instructions Liu Yongning produced, Lin Yanzhou instantly felt his head swell. Money really did not go far.