Most local and state governments are trying to figure out how to operate in the red. The City of Minneapolis chose to forgo snow calling several snow emergencies and plowing upwards of five inches of snow because there simply was not enough money in the budget weekend after weekend of snow storms in the snowy state of Minnesota last December.
Perhaps Dorothy was right when she said "there's no place like home," the state of Kansas closed 2010 in the black. Kansas followed the rule of keeping revenues and spending in balance; creating programs and living within their means. The progressive government uses professional managers to to keep local finance in check. Check out this article in the Morning Sun to read more.
The article is a pretty solid read and a great example of responsible gov't spending. One of my biggest gripes with politics is the amount of money that congressman and other public officers waste on getting into office and taking care of their friends who got them there.
ReplyDeleteRough times hit all of us, and gov't isn't immune to the effects either, but Kansas' committee makes smart decicisions by paying debts while they're still "in the black" and keeping taxpayers well being in mind.
When a municipal government is fiscally responsible, they stay in the black? It seems very odd that this is reported as notable. The first thing we learn in economics is the concept of scarcity: we cannot have it all. Unfortunately, most governments (local, state, especially national) operate on a blank check with uncontrollable spending and do not flinch to acquire increasing amount of debt. I wonder how these governments prioritized programs and services provided, and what they had to sacrifice in the process.
ReplyDeleteThis situation sounds exactly like the one Professor McKinney discussed in class. I agree with the local governments in the City of Minneapolis. They can't spend money they don't have. When people choose to live in an area that is known for inclement weather, they should be doing so with the understanding that such weather may inhibit their ability to do certain things. I believe once the government has spent what they have in their budget, it is up to the individual to adjust their behavior by driver safer, making fewer trips in their car, etc.
ReplyDeleteBeing a state that can effectively manage both revenues and expenses will definitely have an edge when it comes to harsher times like our current recession. They are able to possibly save money to help buffer lower revenues when the going gets tough so they don't have to cut costs like plowing 5 inches of snow off roads. Minnesota needs better attention given to this type of issue, since I am sure mother nature is a big factor when planning for the winter budget. As Ashley noted, I wonder where that money is for Minnesota and if something else drastic occurs, what else may be sacrificed from the general population due to lack of funds.
ReplyDeleteJust a note, the Minnesota reference was my own experience and not directly related to the article. The example was to show how governments could fall into the red despite ample planning.
ReplyDeleteIf Minnesota had ample planning and so did Kansas then where did Minnesota go wrong? If it was last December (2009) that they realized they were short on money to clear out (or because of clearing out) the streets of snow for the citizens who feed the government revenue then during the fiscal year they should have planned ahead. I wish I knew more about both the states to be able to better judge where and how Minnesota fell short and ended in a deficit while still choosing to inadequately plow streets (which, as noted in class, everyone expects out of the government without fail) but then again this is one of the worst economic times for America in all levels of government. I can't exactly talk historically, but it seems like snowy state residents should, and if needed hopefully will, get used to their streets and walkways not being plowed to their satisfaction! As Dr. McKinney brought up in class about Kalamazoo city officials having to debate about paying overtime (with money they don't have) and maybe being responsible for a civilian death - a worse case choice, I feel it is time, at every level of government, to sit down and re-prioritize fiscal spending.
ReplyDeleteI completely agree that city governments should be much more careful regarding there budgets, and simply not spend money that the city simply does not have. However, I have a hard time agreeing with saving money and the overall city budget on limiting snow plowing within the city, especially one like Minnesota with heavy snow fall. Of course people who live in that city know how much it snows, and they can drive more cautious, but the fact of the matter is most cars can't handle that much snow at all no matter how slow you drive. So if the roads are not getting cleared when it snows due to lack of revenue, what happens to all the businesses that shut down for the day because their employees refuse to drive in those conditions? I believe that cities need to be more conservative with their budgets, but not in regards to public safety. I think there are many other areas that government budgets can improve on, for example the war on drugs. This is just a side note, but why are we spending almost $14 billion a year to fight this war on marijuana alone? A war that has lasted almost a hundred years and during that time the marijuana industry is continuing to grow every single year; especially in recent years due to the growth in medicinal marijuana. How is it that we can justify $14 billion when nothing is being accomplished across the country?
ReplyDeleteI agree with Matt; I think the City of Minnesota should find other areas in the budget to cut and keep the snow removal a high priority. I understand that people from Minnesota should realize that when they choose to live there, they must be willing to cope with such inclemental weather; however, I do not think that simply driving more cautiously through the snow-filled roads fixes the solution of the safety hazard that the snow causes. This may be a stretch, but I think, like FDR put it, these citizens should have the freedom "from" unsafe road conditions. Public safety should definitely remain a top priority. Also, I think the idea about how businesses in the city might have to close due to the unplowed roads is a good point. What about school closings as well?
ReplyDeleteI agree with JJ that fiscal priority needs to be analyzed. The problem, I think, comes from the fact that politicians tend to hold their careers at a higher priority then that which actually needs to get done. Meg Whitman spends $120 million of her own money to get elected running on a conservative platform?? We are in the worst economic times we have seen in a long while, yet more money was spent during the past election than ever before. Everyone wants to be the hero, but no one has the balls to tell people the hard truth. Americans are spoiled. We have become used to getting what we want, when we want it. If we cant afford it we borrow, and when we cant pay back our bills, we file for bankruptcy and start over. We have become fatter, lazier, and less communal as a society. Just like government.
ReplyDeleteit's easy to place shame on the government for failing their obligation to their citizens to run a profitable systems of operation and serving their public, but this task is undoubtedly easier said than done. the government is responsible for so many things that require SO much money, but taxes are always the last thing that their public want to hear when it comes to approaching a solution.
ReplyDeleteI agree that campaigning expenses are getting more and more ridiculous, but there are so many necessary expenses that governments face day to day and our system of barrowing loans almost sets us all up for failure more than success.