The Natural Cycle – Depression on a budget

It is a little known fact, in the United States of America, that a money crisis happens at regular intervals.  Every eight years a major downturn forces governments to wring their hands and howl.  Howling about how they do not have enough money and need to raise taxes.

As a participant in the process of government you need to consider some things. When economic times get tough and money becomes tight, people will not vote to increase taxes.   What then can be done to insure that services can continue? 

A few polices could increase the perception of good governance.  While, at the same time making the income your city, town, county, or state go as far as it can go.

  1. Money not spent on projects become part of the next years budget, called a carryover, this will prevent governmental employees from a buying binge at the last minute.
  2. Provide a budget to the public that has a narrative, an explanation, of where all of the money comes from and exactly where, what it is spent on.  Include an employee schedule; People have the right to know exactly where their money goes.
  3. After contracts have been negotiated, do not change them.  Changing a contract for a project can raise the cost by triple.  Look no further than the Tram in Portland Oregon.
  4. Do not pay any government employee more than twice of what the average wage in is your area is.  You will need to do a wage study of the private sector and every five years update it.  However a government employee should not be receiving a hundred thousand dollars a year in compensation, if the average wage in the private sector is fourty thousand dollars a year.
  5. Get away form a biannual budget.  Every government in the Unites States of America that uses a biannual budget has massive budget issues.
  6. Inform employee unions that in automatic downturns, salaries will be frozen.  There are people that you want to have vote for a raise in taxes that haven’t received a raise in three or more years.  Why, then should government employees be given automatic raises?
  7. Buy a year of office supplies all at once.  Determine how much paper is used and buy it all at once.  Inform the employees that when this is gone there is no more until the coming year.  Three hole punched paper costs no more than paper with out the holes, so consider that as well.  Also consider going paperless but remember, laptops can be laid around carelessly and cost more than paper.

This is not an exhaustive list but if put into place, and followed, the voter will be more receptive in raising taxes.  After all you are looking out for their money.

 

Sherman

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