Andy's Blog

Tuesday, September 21, 2004

City needs courage to solve budget shortfall

The City of Duluth needs courage to solve the current budget shortfall. Certainly, we've gotten into this problem by approaching the budget in the same ways we have always done it.

Unfortunately, the rules have changed - and so must we.

The State of Minnesota has reduced the amount of money it will give to the city, sales taxes are flat, and costs are up. The old rule states that we either raise taxes or cut services, period. We must re-examine that model. As private citizens, we are forced to make similar choices. When the cost of gas or health care increases, we do without or we find cheaper and more effective means to get the job done. So too, the city must find cheaper ways to get the same things done.

Cutting services or increasing taxes is easy - for awhile. For example, we fund our retirees' health care. This is honorable, indeed. But we do it in such a way that we do not take advantage of the benefits of Medicare, or other measures that might sharplky reduce our costs. Surely, if we ask the retirees to use Medicare as their primary source and then provide a supplemental plan to reimburse uncovered expenses, both the retirees and the taxpayers win. We must look at everything to see if we can find similar efficiencies.

Until we challenge ourselves to think and act differently, expect more of the same.

posted by Andy Peterson www.duluthchamber.com at

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