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Paul Bingle for Columbus City Council
Paul's Commentary:
What No One Wants to Talk About Until After the Elections:
What No One Wants to Talk About Until After the Elections:
Premise:
No one inside City Hall will dispute this fact to be true - but few are willing to openly talk about the
matter before the November 6 elections... The cost of providing basic City services is about to exceed
the operational support revenues that are presently available to the City of Columbus. Forget about
enhancing the present level of services... We are talking about just the present level of services - after
several years of personnel and program reductions...
No one inside City Hall will dispute this fact to be true - but few are willing to openly talk about the
matter before the November 6 elections... The cost of providing basic City services is about to exceed
the operational support revenues that are presently available to the City of Columbus. Forget about
enhancing the present level of services... We are talking about just the present level of services - after
several years of personnel and program reductions...
Discussion:
The City has struggled to make ends meet during the passing years - as the general economic woes of the Midwest have
impacted Central Ohio's business economy. To make ends meet, the City has been reaching into its 'rainy day' fund to pay
for basic City services. To make ends meet, City leaders have worked hard to reduce City expenditures while providing
basic City services. The consequence has been reduced personnel and reduced programs. The consequence has been
growing appeals from citizens for enhanced City services - services that simply cannot be funded under the present
circumstances.
The City's present 2007 operational budget calls for approximately $631 million in expenses. Of the revenues,
approximately 2/3 are from a 2% income tax on the wages of persons who work inside the city limits of Columbus. More
than 40% of the income tax revenues are from employees who live outside of Columbus. In terms of expenses, more than
70% covers the costs of employing safety personnel, including fire and police personnel.
When the general economy was strong in Central Ohio, the City's income tax revenue was annually growing at a pace
that kept up with the cost-of-living increases of the City's expenses and enhanced initiatives. It also allowed for
revenues to be set aside in a 'rainy day' fund.
During the past decade, the general economy has been more stagnant - resulting in the income tax revenues not
keeping adequate pace with the rising expenses of running a City - in spite of personnel and program reductions. In
looking forward, the trend lines will likely continue to cross, with expenses out pacing the City's revenue stream growth.
The consequence is that the City has to either continue to cut into its services - and/or it needs to find a way to add to the
City's annual revenues.
All the while, businesses and citizens alike are appealing to the City for increasing the present level of City provided
services - further stressing the balance between expenses and revenues.
Thus the question needs to be clearly and loudly asked of City leaders: How are the City's expenses to be funded over the
next five or more years?
~ The community is unlikely to be satisfied with further cuts in City expenses via further personnel and program reductions.
~ The long-term answer is that the City and its partners in Central Ohio and in the State of Ohio, must devote more time
and resources to efforts that both sustain present employment centers, that nurture employment growth of present
businesses, and that attract new businesses to Central Ohio.
~ The short-term answer may be that the City may have to increase its present revenue methods - including
consideration of fee, property tax, and income tax increases.
The City has struggled to make ends meet during the passing years - as the general economic woes of the Midwest have
impacted Central Ohio's business economy. To make ends meet, the City has been reaching into its 'rainy day' fund to pay
for basic City services. To make ends meet, City leaders have worked hard to reduce City expenditures while providing
basic City services. The consequence has been reduced personnel and reduced programs. The consequence has been
growing appeals from citizens for enhanced City services - services that simply cannot be funded under the present
circumstances.
The City's present 2007 operational budget calls for approximately $631 million in expenses. Of the revenues,
approximately 2/3 are from a 2% income tax on the wages of persons who work inside the city limits of Columbus. More
than 40% of the income tax revenues are from employees who live outside of Columbus. In terms of expenses, more than
70% covers the costs of employing safety personnel, including fire and police personnel.
When the general economy was strong in Central Ohio, the City's income tax revenue was annually growing at a pace
that kept up with the cost-of-living increases of the City's expenses and enhanced initiatives. It also allowed for
revenues to be set aside in a 'rainy day' fund.
During the past decade, the general economy has been more stagnant - resulting in the income tax revenues not
keeping adequate pace with the rising expenses of running a City - in spite of personnel and program reductions. In
looking forward, the trend lines will likely continue to cross, with expenses out pacing the City's revenue stream growth.
The consequence is that the City has to either continue to cut into its services - and/or it needs to find a way to add to the
City's annual revenues.
All the while, businesses and citizens alike are appealing to the City for increasing the present level of City provided
services - further stressing the balance between expenses and revenues.
Thus the question needs to be clearly and loudly asked of City leaders: How are the City's expenses to be funded over the
next five or more years?
~ The community is unlikely to be satisfied with further cuts in City expenses via further personnel and program reductions.
~ The long-term answer is that the City and its partners in Central Ohio and in the State of Ohio, must devote more time
and resources to efforts that both sustain present employment centers, that nurture employment growth of present
businesses, and that attract new businesses to Central Ohio.
~ The short-term answer may be that the City may have to increase its present revenue methods - including
consideration of fee, property tax, and income tax increases.
Paul's View:
The City should appoint a "blue ribbon" panel of business finance professionals to perform an analysis of the City's
finances on behalf of the citizens. The purpose of the analysis is to provide a non-political financial assessment to the
community that outlines in clear language:
City Hall is dominated by one political party. Citizens of a differing political view could discount any report provided by
City personnel in belief that it is a fluff analysis favoring the elected officials. Tapping local business Chief Financial
Officers and accounting professionals that have no political agenda - would allow for the community focus to be on the
report, not on the personalities.
City Hall has historically been careful in the expenditure of the public dollar. It's fiscal policies have stood the test of
time. Nevertheless, it is good practice to bring in outside professionals to offer their business-experience point of view
to determine if changes in policy may benefit the City in its ability to deliver enhanced services.
In the absence of being told that the City is basically 'tapped out' (what politician wants to say that?) - citizens are being
lead to believe that the City has the financial capacity to increase City services - whether it be in the employment of
more safety personnel, increasing Recreation and Park programs and increasing center hours, or the Health Department
having the funds so that it can support the network of community services that it leads and partners with. When citizens
ask for hundreds of additional safety personnel, they are not cognizant that the City simply does not have the tens of
millions of dollars available to hire, train, and support the personnel, regardless of held perceptions for the need for more
personnel.
It is time that Columbus has an honest dialogue about what services the City should provide, what services can the City
provide, and how should the City pay for the services. As an example, if after a comprehensive community dialogue,
citizens choose to reject the option of increasing the income tax rate, then as a community, we have to be able to
accept the consequences of the City's need to live within its available revenues - even if that means more severe cuts
in services and no significantly enhanced services.
Smiling and pretending that all is fine is dishonest and it is disrespectful to the citizens of Columbus. All is not fine with the
City's finances.
Long term - we simply must be collaborative with business and governmental leaders in attending to the broad list of
tasks that are necessary to retain present jobs, to nurture growth in businesses presently located in our area, and in
attracting new businesses. As a City Council Member, one of my primary focuses will be to be an active partner in this
collaboration. The future economic health of Central Ohio is dependent on us succeeding in this mission.
The City should appoint a "blue ribbon" panel of business finance professionals to perform an analysis of the City's
finances on behalf of the citizens. The purpose of the analysis is to provide a non-political financial assessment to the
community that outlines in clear language:
- The City's present services and revenues, in description of programs, personnel numbers, and costs;
- A summation of the enhanced services desires that are held by the Administration's leadership, in description of
programs, personnel, and costs; - The options that the City has for increasing operational support revenues in context of similarly sized cities; and
- The panel's suggestions for how the City could leverage its resources and how the City might change its present
fiscal policies and revenue streams.
City Hall is dominated by one political party. Citizens of a differing political view could discount any report provided by
City personnel in belief that it is a fluff analysis favoring the elected officials. Tapping local business Chief Financial
Officers and accounting professionals that have no political agenda - would allow for the community focus to be on the
report, not on the personalities.
City Hall has historically been careful in the expenditure of the public dollar. It's fiscal policies have stood the test of
time. Nevertheless, it is good practice to bring in outside professionals to offer their business-experience point of view
to determine if changes in policy may benefit the City in its ability to deliver enhanced services.
In the absence of being told that the City is basically 'tapped out' (what politician wants to say that?) - citizens are being
lead to believe that the City has the financial capacity to increase City services - whether it be in the employment of
more safety personnel, increasing Recreation and Park programs and increasing center hours, or the Health Department
having the funds so that it can support the network of community services that it leads and partners with. When citizens
ask for hundreds of additional safety personnel, they are not cognizant that the City simply does not have the tens of
millions of dollars available to hire, train, and support the personnel, regardless of held perceptions for the need for more
personnel.
It is time that Columbus has an honest dialogue about what services the City should provide, what services can the City
provide, and how should the City pay for the services. As an example, if after a comprehensive community dialogue,
citizens choose to reject the option of increasing the income tax rate, then as a community, we have to be able to
accept the consequences of the City's need to live within its available revenues - even if that means more severe cuts
in services and no significantly enhanced services.
Smiling and pretending that all is fine is dishonest and it is disrespectful to the citizens of Columbus. All is not fine with the
City's finances.
Long term - we simply must be collaborative with business and governmental leaders in attending to the broad list of
tasks that are necessary to retain present jobs, to nurture growth in businesses presently located in our area, and in
attracting new businesses. As a City Council Member, one of my primary focuses will be to be an active partner in this
collaboration. The future economic health of Central Ohio is dependent on us succeeding in this mission.
| Is it 'Deja vu' time... 25 years later? |
Click to see the City of Columbus 2007
Budget Summary
Budget Summary
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