The Finance Committee met tonight to discuss the budget.
Beforehand, John Earle presented several ways to avoid spending a total of $300,000 from the unencumbered fund. Although these ideas are helpful, they mostly amount to moving money from one account to another or allocating revenue previously expected for 2011 into 2010’s budget.
First, the amended budget pays for Rob Kurtz’s salary (with benefits, totaling $110,000) out of the Lodging Tax money, which is simply using a different fund to relieve pressure on the operating budget. It’s a zero sum gain. Second, the city is due a reimbursement from the federal government on a road project. If we do things in a timely manner, we can get that $114,000 at the very end of 2010, rather than 2011. Of course, that’s money that cannot be allocated to 2011, so it’s another zero sum gain. The remaining money is speculative ($50,000 from potential fire union concessions) and in small amounts ($5,000 from canceling events that won’t make money; $10,000 from council’s contingency fund).
My solutions
I proposed several more ideas to fully eliminate the deficit, and to supply $163,000 to buying new snow plows and/or paving the roads. My cuts add up to about $378,525 in overall savings.
1) Taking another $100,000 from the Lodging Tax fund. Admittedly, this is another zero-sum gain, like moving Kurtz’s salary. However, it makes sense to use the money, rather than let it sit in a fund not being used. The fund will still have about $250,000 at the end of the year. Savings: $100,000
2) A 10 percent cut of the Parks and Rec Department. I am not afraid of making difficult decisions. When choosing between keeping roads safe and having 10 percent more money for the parks, it’s not even close for me. Savings: $158,553
3) A 3 percent cut in golf course expenditures. The course used to be profitable, this is a step toward making it profitable again. (As you know I support selling or leasing the course, but that won’t affect the 2010 budget). Savings: $38,994
4) Managerial salary cuts. Council only has authority to affect those salaries of employees who are 1) not in a union, 2) not under contract, 3) not civil service hires (i.e. police/fire management), 4) not protected by the Charter (i.e. elected officials). For employees making more than $80,000, a 5 percent cut. For employees making more than $70,000, a 4 percent cut. For employees making more than $60,000, a 3 percent cut. For council, I propose a voluntary 10 percent cut (amounting to $1,600 per member). Savings: $80,978
Total savings: $378,525.59
This extra money will allow us to: 1) Eliminate use of the unencumbered funds. 2) Put $163,000 back into the capital improvements fund (allowing us to resurface the roads that are in worst condition).
Jim Costello said that he won’t support my managerial salary cuts. He said that managers have given up enough by not getting their cost-of-living raises. I respectfully disagree. You aren’t giving up anything by not getting a raise. In the private sector, people are taking pay cuts. Raises are nearly unheard of. If you need evidence, look at how our income tax totals have tumbled. If we want to take our duties to the people seriously, we must take every measure necessary to operate more like a private business.
John Pribonic talked about not wanting to make cuts, but rather focus on economic development. I respect John’s opinion, but practically, we have not been ignoring economic development. What new things can we do that will turn everything around? We can sing about economic development all day long (see Sara Drew), but the problem won’t go away until we pursue it from both angles. Like Joe Hickin said, this government has outgrown its population. It needs to shrink–no question about it.
But since we are talking about economic development, consider that Stow is robbing the capital improvement fund by $1.1 million. The capital budget is what drives commerce. And that’s not good enough, so we’re robbing the unencumbered funds by $515,000 (or $215,000) after pilfering $585,000 last year and $128,000 in 2008. When will city council finally admit that the problems are in the mirror? We outspend our means. And we have made a habit of it. Plain and simple.
The Court issue
Here is another HUGE problem that we uncovered. The budget presumes a $750,000 transfer to help pay for court expenditures. What was hidden from council, however, is that the money is not expected to fully come from the judges’ special projects fund at Stow Municipal Court. Rather, the budget assumes that we will have a long-range solution from Columbus–that our lobbyist will fix the problem before 2010 closes, and the Ohio General Assembly will bail us out.
It is one thing to assume we are getting money (between $375,000 and $500,000) from the judges, whom we know to be helpful. It is entirely another to expect the 99 state reps and 33 state senators in Columbus to somehow craft legislation that takes between $250,000 and $375,000 from surrounding communities (or wherever they get it) and puts it in Stow’s lap. And it all must happen within nine months. How unrealistic!
For this reason, we have to be even more conservative with our projected spending. What happens when the $250,000 never comes? Or even worse, if the judges tighten up and we lose out on the full $750,000? We don’t have a commitment from them, so anything is possible. I can tell you what will happen. Council will have to dig into the unencumbered funds again. If council doesn’t consider this likelihood, we are dreaming.
Three members of council (Drew, Pribonic and D’Antonio) committed tonight to voting for this budget, which presumes a court-related bailout, runs a $215,000 deficit and robs the capital fund of $1.1 million. Costello did not commit publicly, so I hope he is open to putting more flexibility into the budget. This will determine whether I was correct in saying he’d make a good mayor.
On Thursday, I will present my amendments to the Finance Committee, which will meet at 6:15 before the council meeting. Whether the budget passes out of committee and gets a vote on the floor of council, I have no idea. But I promise I won’t vote for any budget that takes so many liberties in assuming revenue that may never come and does not address our serious needs.
This city’s problems are much bigger than I ever thought during the campaign.
Golf course
By the way, it has been 11 days since I challenged the Good Ole Boys Network to come up with a reason why it helps the average Stow resident for Fox Den to be government-owned, rather than in private hands. Until today, I only received support for selling/leasing the course. Today, I heard from two people who did not want to sell the course, but neither person answered my challenge (i.e. Why does it help Stow to own Fox Den?).
On the other hand, I received a call from a potential suitor for the course. That makes two interested parties. If you want to contact me, use the button above. I’d love to hear any proposals that I can present to council.
But as to my challenge, that is 11 days and counting. You know where to find me.
