Budget process needs reform

Ira Cohen
Posted 1/10/12

Sullivan County’s recent budget debacles clearly demonstrate the need for reformation of its budget process.

The county legislature and county manager have together produced consecutive county …

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Budget process needs reform

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Sullivan County’s recent budget debacles clearly demonstrate the need for reformation of its budget process.

The county legislature and county manager have together produced consecutive county budgets that have been both disingenuous and fiscally unsound. Sullivan County is on the brink of financial disaster.

In the fall of 2010, the manager presented a budget for 2011 that heralded no tax increase, no layoffs and no reduction in services. Was this miracle accomplished by exercising sound fiscal restraint and thoughtful choices? No. It was conditioned upon, and included involuntary give-backs by the unions, although the unions never agreed to them. County officials threatened that they would not honor recently adopted union contracts, and they tried to strong-arm the unions by telling them to take it or leave it. Universally, union representatives reported that county officials dealt with them in bad faith and with disrespect. In the end, the unions threatened litigation, and the legislature was forced to abandon its untenable, presumptuous and illegal conduct, making them a laughing stock throughout the state. As a result, the county’s fiscal activities had to be constantly modified throughout the year, as the adopted budget was based on unfounded premises.

One would think that productive lessons would be learned from this failed experience in bullying. Unfortunately not. Throughout 2011 no serious attempts were made to make peace with the unions. To complicate matters, the state imposed a property tax cap on all local government tax levies, but offered no concurrent relief from oppressive, unfunded mandates. Most local governments knew they would have to either override the tax cap, or lay off workers and cut services. In a disingenuous attempt to do neither, the county manager filed a preliminary 2012 budget that preserved the status quo by allocating most, if not all, of the county’s already depleted general fund balance. His budget narrative admitted that this maneuver was fiscally unsound, but he filed it nonetheless, blaming it on the legislature’s direction to not override the cap. Once again, faced with an untenable budget, the legislature failed to engage in any meaningful discussions to address the problem and provide the citizens of Sullivan County with a fiscally sound budget. The legislature voted 6-2 to not adopt the budget, but it became the county’s 2012 budget by default. The manager blamed the legislature, and its members blamed each other. They, with one or two exceptions, behaved incompetently, irresponsibly and with a total disregard for the well-being of the county.

Fortunately, astute and frustrated voters elected six new members to the legislature. This new body is facing a serious fiscal crisis, resulting from the economy, and years of inane and inept leadership. The 2012 budget exacerbates a fiscal nightmare for this new legislature. A 2013 budget including a double-digit tax increase will be hard to avoid.

They have much to rectify, not the least of which is to revamp the budget process and insist that their appointed manager file a fiscally sound 2013 budget. They must dedicate their time and efforts to careful analysis, discussion and compromise. They must seek union cooperation, and immediately initiate tough but respectful negotiations.

Eventually, it would be wise to offer the voters a charter amendment for referendum, to replace the appointed manager with an elected executive who would be accountable to the public, and who could manage with independence and professionalism. This important charter amendment would restore vitality and leadership to both the executive and legislative branches of the government and help assure that future budgets will not be the exercises in futility and incompetence that recent ones have been.

[Ira J. Cohen is the treasurer of Sullivan County.]

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