Thoughts on the Budget Process

As January winds down, budget passage is still up in the air. The City Council will be asked tonight (Monday, Jan. 26, 2009) to consider extending emergency budget appropriations through March and April. Daffodils may be blooming before the budget passes with just two months left in the fiscal year.

Meanwhile, the council approved a calendar that calls for FY 2010 budget talks to start in March. The new budget would be for the fiscal year beginning July 1. Figures on actual expenses for FY 2009 will not be known until after the budget year closes.

So wouldn't it be better to focus on this year's budget until it is finalized? Despite the many meetings last fall on the budget, no amendments have yet been formulated. Then again, if budget passage does not happen until April, 10 of 12 months' costs to run the city will have been expended and there will be little to amend.

A one-person layoff plan is under consideration, but the targeted individual will probably still be working until April, so there will be only two months' salary savings. Is this fair or sensible? In 2006, the administration seemed to have the same person in the crosshairs and went so far as to hire somebody at $82,000 to hold the same title. So two people were drawing high salaries for the same job. The new hire, who also held a position in another municipality, finally left and the city veteran stayed on. Then, as I recall, the title was done away with, but the longtime employee took a lesser title, now subject to layoff. Given the history of how this situation was handled, there is likely to be a cost in litigation that may exceed whatever savings the layoff might have produced.

There are other examples of this kind of targeting during the current administration, but poking at people here and there does not reflect a fiscal policy. Of course, the turnover in Administration & Finance may have contributed to ill-considered fiscal strategies. At present, there is no permanent finance director or chief financial officer. I'm told the city has hired a very capable, knowledgeable person to help out with finalizing the budget process. His advice should be heeded.

Tonight's meeting is to include a report from the council's Finance Committee as well as a report on the FY 2009 budget status. I hope people will come out to listen or will view the meeting on Channel 74. Much of the turmoil is due to forces outside city control, but surely there are some commonsense things that can be done to cut city costs. Every household is rethinking spending and allocation of resources. After core services, what discretionary expenses can the city do without? Answers must be found as soon as possible.

--Bernice Paglia