Thursday, November 29, 2007

More Finance Troubles for Mesa

According to Gary Nelson of the Arizona Republic, sales taxes revenues for Mesa have dropped another $900,000 below projections in just about a month. The new gap is about $2.5 million below the current budget needs. So I guess my question is: where will the cuts be made? Why is this such a surprise when its clear that Mesa's revenues depend so heavily on sales tax revenues? How come the council's budget doesn't come with built in contingency?

Here is a thought: Instead of building a budget that has to be cut, why not build a budget with some surplus built in. That way, when times are lean, your surplus is lost without impacting the services as promised. In this current structure, we are constantly set up for disappointment. People put away savings for exactly the same reason. You have some money saved away so when something unexpected happens (like major car troubles, a trip to the hospital, braces) you have the money to pay for it - instead of being left broke and looking for a way to pay the mortgage.

When the property tax failed, we were told that cuts were going to be made? What ever happened to that? Was it all talk? The voters were told what they would be losing by voting it down and they did it anyway. So, why are we still in such a bad position? Shouldn't the council taken that as a clue that they should change the way that they did business? Shouldn't we expect a much leaner budget?

Instead, we are back where we have been for awhile now: at the whim of the economy and Mesa's sales tax revenues.

1 comment:

Unknown said...

Mesaissues, love your blog. It's because the current council doesn't have the brains to think of that. Reason 532 why they need to go. They lied about the property tax and the ramifications if it didn't pass. They have done NOTHING because three are gone in the next election and REx and Claudia are running for Mayor and that was more important than doing the right thing.