Youngstown lawmakers should spend cautiously
A proposal from two members of Youngstown City Council to go on a spending spree with the projected city budget surplus had better be an April Fool's joke.
Given the uncertainty of the national economy and the dire warnings from Columbus that the new biennium state budget will be cut to the bone, a proposal by councilmen Rufus Hudson and Michael Rapovy to gobble up virtually all of the anticipated $875,000 surplus is cause for concern.
Prudent fiscal management requires saving for a rainy day and attention must be paid to what's going on in the country. In Ohio, Gov. Taft has warned that all non-mandated state spending will be slashed and that funding for roads, bridges and job-creation initiatives are in jeopardy. That will affect cities throughout the state.
Fiscal watch: Now is not the time for imprudent spending. It was only three years ago that Youngstown was under state fiscal watch because its treasury was bare. Under the leadership of Mayor George M. McKelvey, city government adopted a recovery plan that required discipline on the part of the administration and council. No-frills budgets, hiring freezes and attention to every spending item, coupled with a windfall from the Ohio Bureau of Worker's Compensation enabled the city to heal financially.
The recovery was impressive and won high praise from state Auditor Jim Petro.
Thus today, city government boasts a surplus of $875,000. But as anyone who has studied government financing knows, rosy scenarios can quickly turn gloomy.
We would urge the lawmakers to withdraw their request for legislation that would transfer $315,000 from the city's general fund to a "council discretionary fund," $400,000 for housing demolition and $150,000 for demolishing old schools. While demolition of abandoned houses and boarded-up schools is a worthwhile and necessary endeavor, we would suggest that the mayor and council establish a priority list and first deal with those structures that pose a threat to the health and safety of the citizenry.
As for giving the seven members of council the discretion to spend $45,000 each in their wards, we would point out that such a plan was in effect years ago and had limited success. It is true that each ward has specific problems that must be addressed, but they should be part of an overall strategy to revitalize the city.
Warning: Finance Director Barbara Burtner has warned that if councilmen Hudson and Rapovy proceed with their spending plan, she will refuse to certify any appropriations from the general fund for the rest of the year. Burtner should stick to her guns. She believes that a $600,000 to $700,000 budget surplus is recommended in the current economic climate. Council would do well to heed her advice.
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