Tuesday, June 03, 2008

Vernon's sister city struggles with Budget.

Budget decisions require openness and a long view Modesto Bee June 3/08
Tonight, the Modesto City Council will vote on a $120 million budget for 2008-09. It's not a pretty proposal, with police and firefighter positions left vacant, six neighborhood pools closed and a $5 fee tagged on for each athlete using city fields in organized sports programs. Around the region, boards and councils are having to make tough decisions, most of them the result of declining revenue because of the mortgage crisis, dropping real estate values and the general economic slump. Government agencies have gotten used to ever-rising revenues from property and sales taxes. Those started to fall this year and they're expected to continue to decline.

It is impossible to comment on every budget decision; we won't try. We think three principles need to guide elected officials:

Transparency: It's the public's money being used to serve the public, and the public should be able to understand how it is being spent. So the process has to be fully open -- and explained in a way that is understandable to everyday residents, not just accountants and those inside the bureaucracy.

Prudent reserves: One of the reasons Modesto is in relatively good shape compared with other cities -- Vallejo being the worst example -- is because in previous years it established and kept to a reserve, even when there was pressure to spend down. For next year, the city plans to have a 7 percent reserve, 1 percent below its target. But Mayor Jim Ridenour says he won't go any lower.

Employee costs: Around the state, a number of government bodies have committed to salaries, benefits and retirement promises that are overtaxing general funds. Elected bodies should be fair to their employee groups, but they have to recognize the long-term and ongoing costs of their contracts.

While elected officials make the decisions, residents bear an important responsibility in this process, as well. They need to stay informed and they need to speak up while the deliberations are under way -- not just after the fact. Too often, officials hear from staff and union representatives and others with vested interests. They don't hear from the public that ultimately is affected.The Modesto council will meet at 5:30 p.m. today in the basement chamber of Tenth Street Place, 1010 10th St. Televised live on Comcast Channel 7.

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