Make sustainable cuts

Budget shortfalls of 5 percent ($1.5M/$24.5M) are not limited to Franklin County. West Richland also is facing a 5 percent ($200K/$4 M) shortfall for a second year in a row. Reserve fund balances are intended to provide some cushion from unexpected shortfalls, but reserves are not always maintained at adequate levels. West Richland addressed the $200,000 budget shortfall in 2009 by drawing from reserves and may have to do the same this year. Kennewick's current reserves (~$2M) would be almost totally consumed by a $1.5M shortfall in 2010.

Bureaucrats rarely see free market pressures, other than those imposed by elected officials. It is up to elected officials to not only assure that adequate reserve funds are maintained but also that spending is controlled to limit the need for tax increases.

Government entities are self-perpetuating and always are looking for opportunities to grow in size and stature. They are rewarded to promote increased revenue (taxes, fees or contributions from other government agencies) as the ultimate solution to any budget issue. Short-term solutions that cut (or threatens to cut) popular programs typically are done in preparation for support of future tax increases.

Budget discussions are more likely to focus on one-time purchases or outlays rather than alternatives for long-term service delivery. Travel, training, supplies, salary increases and consultant use are all initial areas where there is a potential budget savings to avoid reductions in force. A reduction in force may be required, but the focus needs to be on doing less bureaucracy rather than doing less for the public. Span of management (number of workers per manager) is a good point to start looking for real savings. Sharing of resources, reduction in department overhead costs and scaling back programs that do not have significant benefit to the community as a whole need to be considered.

-- Richard Bloom, West Richland

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Sunday, Nov. 01, 2009

Make sustainable cuts