One of the most fun things I've done so far in my almost two years on the Commission is participate in crafting two budgets that support the operation of our city/county and give the Unified Government the resources it needs to provide services for all the people and businesses within our borders (remember our discussion of government responsibilities in my last blog).
OK, I'm lying...I'd rather have a root canal than participate in budget meetings, but the budget process provided a HUGE learning experience and I'd like to share some thoughts and observations here (lucky you!).
Since we're a little over a month into a new fiscal year, I thought it might be a good time to talk "income and expense" as they relate to the Unified Government.
Here is a simple graphic that breaks down the 2013 UG budget that our staff presented at the final public hearing on July 30 of last year. The final budget that we approved is a few dollars different from this version, but not much. (Click to enlarge so you can read the labels).
A lot of money isn't it? Before I took this job I had no idea how much money it takes for a city / county government to provide the services that citizens want and need.
Look closely and you'll see that the high majority of our spending falls into the three categories that I mentioned in my last blog (public safety, public works and the public good). You'll also see that the majority of the money we collect to fund our budget comes from property taxes, sales taxes and the fees that businesses pay to operate in our city and county.
After going through two budget cycles, there are a couple of things that jump out at me...
- Everyone (individuals and businesses) wants to limit the taxes they pay to the government. This makes sense from the perspective that less money paid to the government means more money to save or spend in support of the general economy.
- Everyone (well, at least almost everyone) wants more support and more services from the government than the government can pay for.
So how are we going to resolve the conflict? I don't have the answer, but I have a couple more observations.
Some people suggest that we need to increase income before we can increase services.
Over 50% of the money we collect to fund our budget comes from property taxes, sales taxes and the fees that businesses pay to operate in our city and county. So, if we need more money to fund public safety, public works and the public good, then the most likely places to get that money is through higher property taxes, sales taxes and franchise fees.
BUT, as I said a moment ago, no home owner or business owner wants to pay more in taxes and fees.
Simplistically, the only way to maintain or increase the level of government service without raising taxes is to increase the size of the tax base (more homes and more businesses paying taxes in our community). An increase in the number of properties or an increase in the value of those properties and/or an increase in retail sales will allow us to increase overall tax income while maintaining or decreasing the taxes that any one individual or business pays.
At face value, that's a great solution, but the problem with this approach is that it is a long-term plan that builds slowly over time. And, to make this strategy truly successful, we need to do everything in our power to make our community as attractive as possible so that we become a destination for home owners and business owners looking for a new place to live or work.
Some people suggest that we need to cut spending.
The operative question in this case is, "What aspect of public safety, public service and/or the public good will receive less funding?"
Everyone says, "We need to cut spending", but no one wants us (the government) to cut the programs or services that are important to them. It's always, "Cut someone else...not me or my program(s)."
That sets up a situation where we (the government) have to make tough decisions and where some of you (the public) are going to be upset that we cut something that was / is important to you.
For example, where do we cut spending when...
- we don't have enough folks cutting grass, sweeping streets, inspecting buildings, constructing sewers or enforcing codes?
- we're not performing needed upgrades to our infrastructure (like streets, sidewalks, alleys, curbs and sewers) at a pace that keeps up with deterioration?
- we're not buying needed new equipment (like fire trucks, police cars, backhoes, dump trucks, etc.) as often as we should to insure top quality public safety and public service?
- we're not adequately supporting organizations that provide services to the disadvantaged and underserved in our community?
I'd also encourage you to ask any candidate for public office for their thoughts on these interesting and complex issues. :-)
~ Brian
bmckiernan@wycokck.org
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