Avoiding the California Trap: Living Within Our Means
Despite producing a mammoth water compromise (including an $11 billion bond issue that will go before voters), the State government is making no progress toward fiscal stability. The budget adopted after a long and bitter stalemate is estimated to be $7 billion out of balance. Prospects for next year look grim and it gets worse after Federal stimulus dollars run out in 2011.It is possible to ignore, postpone and fudge fiscal responsibility. California has been doing it for years. But the problem only gets worse, much worse. The Fresno Bee details a new report from the Pew Charitable Trust on 10 states in deep fiscal trouble:
California leads the most vulnerable states identified by the report, which describes it as having poor money-management practices. Since February, California has made nearly $60 billion in budget adjustments in the form of cuts to education and social service programs, temporary tax hikes, one-time gimmicks and stimulus spending, according to the Legislative Analyst's Office.
Ventura has taken a different path. We took swift action back in January 2008, when the economy
first began to deteriorate, to reduce operating spending by 2% to offset falling revenues. The City Council also cancelled or postponed $1.1 million in project spending to safeguard cash.The following year's budget for Ventura eliminated 10 full-time and 25 part-time positions. We targeted 5% reductions in all service and supply contracts and instituted a "winter furlough" for non-critical City operations. But when the economy nosedived in the fall of 2008, even more drastic action was swiftly taken. All employees were asked to accept at least 5% compensation reductions starting in the spring of 2009. In March, three months ahead of the legal deadline, the Ventura City Council unanimously adopted a balanced budget cutting spending by $11 million.
At the recommendation of a Blue Ribbon Citizen Budget Committee, the City Council placed Measure A on the ballot. It would have temporarily raised the local sales tax to the same rate now paid in nearby Oxnard and Pt. Hueneme, as well as Santa Barbara County. As everyone knows, it received only 45% of the vote on November 3rd.
Tonight, the City Council will implement the remaining cuts that were withheld pending the outcome of that vote. Downtown foot patrol and back-up Fire emergency response will be eliminated.
There will need to be further cuts because of the weakness of the economy and the continuing pattern of the State pushing greater responsibilities on cities while diverting local general and redevelopment revenues. But Ventura remains committed to living within our means.
These are tough times for individuals, families, businesses and organizations throughout our community. I know our family is cutting back, our church is cutting back and our city is doing the same. It is painful to drop, delay or downscale our expectations. But the reality is clear: we must make the hard decisions that hard times demand.
Debate is healthy about how we make the necessary cuts. Whether cuts are necessary, however, should no longer be debated. Measure A was the opportunity for Ventura voters to decide -- and they did.
Of course, we won't build sustainable prosperity through cutting alone. Last May's Economic Summit charted an urgent new emphasis on fostering high wage, high value jobs. Attracting and retaining the workforce and businesses essential to a stronger economy also requires investment in public safety and quality of life services that we are cutting. That means it is essential to prioritize those services -- and innovate stronger partnerships and better models for delivering them.
What won't work is belief in the tooth fairy -- simple, easy, painless soundbites you hear at election time about how it is possible to keep taxes low and fund everything voters care about. The election is over and we must face the cold hard reality of balancing our budget in the face of widespread unemployment and the need for everyone to readjust to a new normal.
For too long, our State government has ducked hard choices -- and the result verges on fiscal meltdown. Ignoring, postponing or fudging fiscal responsibility is not an option for Ventura -- unless we want to end up in the same place.





