the problem with sound bites

One sound bite that played a part in the recent council election, and still seems to be on the minds of some, is the notion that the current council is "deficit spending" because it is using funds from the budget stabilization fund to avoid raising taxes. A few observations.

First, it seems obvious (at least to me) that if we're not going to use the budget stabilization fund during the greatest recession in a generation then perhaps we shouldn't have it at all.  Government should not hold onto cash simply for the sake of holding onto cash. 

Second, the council has (or at least I have) been pretty clear that the use of the budget stabilization fund is not a long term strategy.  The challenge for staff remains to present the council with budgets which reconcile revenues with expenditures.  I have made that point every year during our budget discussions.  Staff has preferred to avoid cuts to salarires or service levels and has thus recommended use of the stabilization fund.  This has worked over the short term but will not work over the long term.

Third, I find somewhat ironic that two of those who seem most enamored with the "deficit spending" criticism are the very council members who initiated the practice back in December of 2005.  That's politics for you.

I fear that our economic recovery will be slow and that it will take quite some time for residential property values to noticably rise.  Accordingly, I think residents will remain sharply opposed to increases in the property tax and challenges for all cities will continue.