“We’re in trouble.”
That is the reaction of Mayor Colleen Seng to the five-year budget forecast presented to the City Council yesterday. Inspiring.
She is right, though. Lincoln is in trouble. The city projects an $8.7 million budget shortfall next year, the largest ever in both absolute dollars and as a proportion of the budget. Next year’s budget is projected at $139.3 million, a nearly 12% jump over the previous year. The gap is equivalent to 6.25% of the projected budget.
Property taxes are an obvious candidate as a funding source. As the Lincoln Journal Star noted today, “Property taxes fund 28 percent of the budget, and over the past decade the city property tax rate has been reduced 42 percent, from 51 cents per $100 of assessed value in 1991 to 29.5 cents now.” During the same period state sales taxes increased .5%, equivalent to 50 cents per $100 of sales, in order to cover state budget shortfalls. Although it is somewhat unfair to mix state and local tax rates in a conversation like this, the overall tax burden on individuals is still an important part of any revenue-raising discussion.
As Councilman Glenn Friendt noted, “Eventually the piper has to be paid, and we’re at that point.” The City Council has a long history of putting off or skirting difficult decisions. The most notable act of leadership they have demonstrated recently was voting to enact an almost-total smoking ban in workplaces and public areas—and even that issue was filled with frequent demonstrations of indecision and cowardice from the Council. The Journal Star notes that “[Friendt] said the council is under tremendous pressure to make short-sighted fixes, kowtow to special interest groups and live up to political pronouncements — and to put off issues rather than make bold decisions to live within its
budget.” Friendt himself is admitting that the Council is incapable of making “bold decisions.”
Lincoln projects a substantial budget shortfall for next year—the largest ever. The city also wants to: tackle the Antelope Valley Project ($240 million); build the South Beltway (~$100 million); build the East Beltway (I haven’t seen a price yet); renovate Downtown (a convention center alone will cost $50 million); build new elementary and middle schools (likely a few tens of millions); and improve its streets and infrastructure (the recent failed bond issue was for $90 million). On top of all that spending, the Journal Star reports that an additional 11 bond issues are possible over the next five years. Where oh where is all that money supposed to come from? Some city “leaders” have said they hope to get funding from the feds for Antelope Valley and a few other projects. But federal funding for Antelope Valley so far totals less than $10 million, substantially lower than the tens of millions predicted (and hinted at to the public) by this point. Besides, is it really fair to expect residents of Georgia to pay for our pet projects? On second thought, let’s not go there; pork barrel politics is a whole ‘nother issue!
This problem is going to take some serious leadership—leadership we just don’t have in Lincoln right now. Fortunately there is a City Council election coming up in May, so perhaps that will stir up some changes. If only we could hold a mayoral election as well.
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