The Fiscal Mess

The city's fiscal situation can charitably be described as a mess. "Disaster" might also be applicable.

Before reading more here, check this out, and then come back.

We don't necessarily disagree with Mayor Dan Mylott's use of free cash or overlay money in next year's budget. The needs to strengthen its financial standing, but at the same time it needs every piece of help it can to start moving forward. The use of overlay money is very, very common in communities that are money starved. Technically, it's money that was budgeted for use years before and is left over. No problem there. The free cash issue is a little touchier, only because that's the area that's often set aside for "rainy day" or "stabilization" funds. At this point, every day is a rainy day in Fitchburg. Use the money, wisely, to create long-term growth and strengthen the future.

Yes, there's the other side. Throw that money into a stabilization fund, or use it to cut taxes. As noted a few weeks ago, we prefer to see the city use that money to improve services in desperate need of help, rather than offer homeowners a small tax cut. It's our liberal nature.

There's some interesting politics going on here, and in some ways the council is hijacking the budget process. Is that good? It's a little tough to say. This is certainly a unique situation, and one no one has ever gone through before. The council wants an answer on the $1 million deduction in school funding. By law, they can't put it back in. But can they "reject" Mylott's budget and demand a "new" one? One that includes more school funding?

(By the way, we hope that school funding discussion includes a serious look at the city's reduced funding of schools, as we discussed last week.)

On the issue of bonds, a confusing and befuddling process, clearly the news is not good. Steps down never are. It's an indication of the city's tenuous financial position.

So, where do we go from here? Clearly the city has fewer dollars than necessary to operate the government and municipality we all want. Whether it's trash on the side of the road, or gang violence, or making downtown safer, simple services aren't being met. Mylott plays it a little risky with the budget, pouring every available dollar into services, and gets crucified for it.

The unfortunate reality is neither side is wrong. The city does need to put a premium on boosting services. But to do so is financially risky. There's no right answer right now. Even more unfortunate, there's no clear solution. Shackled by Prop 2 1/2, the city can only do so much in terms of property taxes. The state can't or won't provide extra money for the city. Where's the help?

Hate to be Nate Negative today, but the city's financial future is rather stark. Perhaps there needs to be a study and a plan that creates a five- and 10-year budget strategy for the city (if one doesn't already exist. If one does, can someone with knowledge point toward the details). The city's fiscal fortunes won't turn on a dime. It's going to take some foresight and planning, now, to improve things down the road.