Tax increase -- or worse -- ahead?
Now this is interesting. Mayor Street and City Council passed a budget yesterday in the style of a family with a new credit card at Christmas: It gives everybody everything they want. And, in Mark McDonald's story about this today, Darrell Clarke notes:
"Unless we're going to dramatically cut services, we are going to have to start talking about raising some revenue," he said. "It may call for some minimal tax increases."
Obviously, he's right -- but the problem is (as Rob Dubow of PICA, the city budget watchdog, points out in the same article) that we are facing more than just a budget with too much under its tree -- we're looking at structural budget problems AND new union contracts that must be negotiated immediately after the next mayor takes office.
These two things are NOT directly connected. However, is it a common sense -- or smart negotiating -- to head into what should be a difficult, painful time of renegotiating contracts with a budgetary attitude of, "Hey, whatever you want!"?
I couldn't help but read the whole paper today with a sense that we're ignoring some structural problems. The schools budget is "balanced" with the imaginary support of money from Harrisburg, though lawmakers have said they aren't going to give it. The city budget is "balanced" this year, though the spending it in "utterly imbalanaces" the city's five-year plan, as Mark reports.
Meanwhile, DHS just realized that its failure to deal with kids in its care a generation ago is leading those now-grown people to kill their own kids today.
You know how, after too many of those Christmases, families that have lived an unsustainable high life for too long have to sit down and figure out a way out of debt?
Well, in the next mayor's term -- perhaps when those union contracts are up for renewal -- the city will find itself having to do something similar. We're already in debt at a level that worries budget analysts, so more city borrowing really isn't the answer. The answer will be hard choices, something we don't seem quite ready to accept.