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OPINION

Editorial: The city's budget woes

Saturday, January 30, 2010
(Updated 3:00 am)

City Manager Rashad Young is no stranger to difficult budgets.

"In our community, we were so much more challenged fiscally than we are in Greensboro," Young once said of his previous job as Dayton, Ohio's, manager.

He may have spoken too soon.

Thanks to an ebb in sales tax revenues, the city of Greensboro faces a more than $11 million budget shortfall. That means considerable cuts in city spending.

One approach that seems equitable in theory but can be shortsighted in practice is across-the-board reductions. Better to set clear priorities and let them help guide what stays and what goes.

This would require close collaboration with the City Council and consensus on which spending and services matter most. Some council members might sooner find a pot of gold at the end of the rainbow than find common ground. But they'll need to try.

For Young's part, he likes to preserve spending on infrastructure as much as possible. "If you don't prepare and have developable sites and have the infrastructure poised for growth," he told News & Record editors in November, "you cannot take advantage of those opportunities."

That's a sound approach. The city should never stop investing in growth.

But finding other places to cut won't be easy. The city might start by considering which bond projects might be delayed until the economy improves. For instance, a new $19 million city aquatics center was placed on a fast track in hopes of cheaper construction costs, but so far that hasn't happened. The $12 million in bonds approved by voters for the facility were nearly $7 million short of the actual costs, which have to be covered by hotel tax revenues.

Voters also approved $20 million on bonds toward renovating and expanding the Natural Science Center, but plans already called for staggering that bond spending over several years to contain costs.

Some will argue that the swim center will bring more visitors to the city, thus boost the economy, a valid point. But voters have approved so many local bond projects (a total of $806.1 million in county and city bonds in 2008 alone) that something may have to wait.

As for possible layoffs, the city should consider reduced hours and shorter work weeks before handing out any pink slips. That way jobs are preserved and when times are better, service could be restored to previous levels where demand still warrants.

None of these scenarios seems especially appealing. But if the council sticks to its desire not to raise taxes, something will have to give.

In times like these, you do what you have to do.

Comments

This article has been closed to new comments. Comments are generally closed after 14 days. However, comments may be closed earlier at the discretion of the News & Record.

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Panacea

January 30, 2010 - 8:45 am EST

Put the swim center on the back burner. Science Center too.

Focus on maintaining current infrastructure, which is falling apart. The roads are becoming a disgrace, and a dangerous one as well.

Mick

February 1, 2010 - 9:30 am EST

See if there are other areas of waste or items that can be delayed/postponed w/o wasting funds already spent. Fix roads and infrastructure, make necessary repairs to existing facilities, continue to try and take advantage of current construction prices where necessary and feasible. Prioritize sensibly and w/o politics. Try not to cut facilities, services, etc that will actually bring more people to town to increase our sales/hotel tax revenues. Above all... do not knee jerk and cut projects just to placate some folks. They will simply resurface with new or more likely re-hashed arguments when the process begins anew.

In short, do your job.

Abner Doon

January 30, 2010 - 9:11 am EST

Are principal and interest payments of an expected $70 million bill for complying with Jordan Lake Rules accounted for in the City of Greensboro’s $11.2 million deficit?

George Hartzman

Mick

February 1, 2010 - 9:22 am EST

Why do you not accept Dr Brod's NSC study? Have you seen the study?

Badgolfer1

January 30, 2010 - 1:10 pm EST

Would it be possible for the NR to list all pending bonds approved by Greensboro City and Guilford County as to when they were voted on for approval and when are they supposed to have to be completed by? For instance it was noted the total for the 2008 bonds. Are any bonds still pending from prior years that have also been delayed? This information would provide readers with a more complete picture of what our government leaders actually face with this one aspect of governing and what voters have told government that they want done in their communities.

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