Youngstown's budget crisis demands cautious spending



What a difference a year makes. Last April, Youngstown city government had an $875,000 surplus in its general fund budget and a couple of lawmakers came up with a shopping list for spending the money. We urged caution.
Here's what we said: "A proposal by 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."
Warning: Today, Mayor George M. McKelvey and his finance director, Barbara Burtner, have sounded a similar warning in discussing the city's operating budget for this year. Even though the spending plan approved by council this week reflects a $13,000 surplus, the fiscal storm clouds that are already evident makes any surplus illusory.
McKelvey's characterization of the budget leaves no doubt about the condition of the city's finances.
"This document is going to be very much a living document," the mayor said. "We will have some challenging times ahead of us."
A living document means that it can change on a daily basis. It also means that the mayor and city council will have to work closely on making sure that "prudence" becomes the operative word with regard to spending. It is worth remembering that four years ago, the city of Youngstown was placed under state fiscal watch because its treasury was bare. McKelvey and council joined forces and developed a no-frills recovery plan that enabled the city to shed the fiscal watch designation. The effort drew high praise from Ohio Auditor Jim Petro.
We are confident that city officials will rise to the occasion -- again.