From a lengthy article by Kevin Leininger in the Fort Wayne News-Sentinel:
Give Mayor Tom Henry's administration credit for acknowledging a looming budget problem in time to prevent it from becoming an actual emergency.
But not too much credit, because the day of financial reckoning has been coming for a long time – and some local officials here and elsewhere were way ahead of their Fort Wayne counterparts in predicting and responding to revenue shortfalls caused by property tax controls, a weak economy and other factors.
It was big news earlier this month when administration officials warned City Council that the city's cash balance fell from near $27 million in 2010 to less than $20 million at the end of last year and that its 2013 budget may include a deficit of up to $6 million. But the conservative Indiana Policy Review predicted this very thing two years ago, and some governments have already acted in ways Fort Wayne is only now starting to discuss.
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Allen County officials have not been above advocating or implementing higher taxes, but before the city considers doing likewise it should seriously consider what the county has done to limit spending and to concentrate on government's core responsibilities.
Unlike the city, where the administration prepares the budget for Council's review, County Council has for years taken a far more aggressive role by establishing spending targets for individual departments while giving department heads discretion over how best to meet those goals. Not wanting to tap its $13 million rainy day fund, Council has told departments to cut their 2013 spending requests by about 2.5 percent, and that followed last year's request for across-the-board cuts of 7 percent.
Some of those cuts were later rescinded, just as departments can appeal next year's proposed cuts. But Council's point was made: Budgets will be scrutinized, and spending must be justified.
Similarly, the County Commissioners last year began a process of identifying which services are actually required by law and which could be reduced, eliminated or taken off the tax rolls through new or increased user fees.
That process is ongoing, and County Council President Larry Brown said some departments have cooperated more than others. “We don't want to micromanage, but if (departments) don't cooperate, maybe we will. It may take Council being the bad guy,” he said, noting that City Council -- which unlike the county must deal with unions -- has not always appeared to be as aggressive about controlling costs.
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Taxes are necessary, and most people will gladly pay them in exchange for necessary services efficiently provided. But when taxes are wasted or spent frivolously, the public properly bristles.
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See the full article here:
http://www.news-sentinel.com/apps/pbcs.dll/article?AID=/20120821/NEWS/120829970/0/SEARCH
