Tuesday, April 21, 2009
Of all the comments made recently by public officials about the challenges confronting government spending at every level, this one from Boardman Township Administrator Jason Loree stands out:
“We want everybody in the township — the labor unions, everyone — to have a clear picture (of the financial situation). There’s a little bit of a credibility issue going on.”
We disagree with his use of the words a little bit to describe the attitude of the taxpayers with regard to the keepers of the public purse. There is a huge credibility problem, not only in Boardman Township, but with just about every entity that operates with tax dollars.
The problem has to do with the reality of the operating budget: With 80 percent going for employee wages and benefits, private sector workers are wondering what benefits they derive from their dollars.
That inquiry is heard with greater frequency as the sputtering national and state economies trigger major job cuts, wage freezes or givebacks and pension retractions. Taxpayers are stretched thin and are being vocal about public sector spending.
That is why Loree’s comment about credibility rings true.
So, how do government officials persuade taxpayers that they are worthy of the public’s trust?
Boardman Township is looking to Columbus. The Ohio Auditor’s Office is being to asked to determine if state-mandated fiscal watch is something township trustees must be prepared to accept.
A fiscal watch analysis will be conducted on the township’s financial condition as of Dec. 31, 2008. An examination of government’s financial forecast for the year ending Dec. 31, 2009, may also be included.
The analysis comes about a year after the state issued its report stemming from a performance audit conducted of Boardman’s finances. At the time, the township was facing a $3.5 million deficit.
Potential savings
The state audit, signed by Auditor Mary Taylor, identified potential savings that would have reduced the deficit by $1.2 million.
As part of the fiscal watch analysis, we would urge Auditor Taylor and her staff to determine how fully the performance audit recommendations have been implemented.
It is disingenuous for public entities to seek independent reviews of their budgets in an effort to appease cynical, angry taxpayers and then not fully embrace the recommendations.
In last year’s performance audit, for which the township paid more than $70,000, the state auditor said the $1.2 million savings could come from restructuring some departments, changing employee health insurance contributions and contracting with neighboring communities for dispatching.
While there has been progress made in changing the way township government conducts the peoples’ business, still more can be done.
Last November, Boardman voters approved a safety forces levy, with the promise from trustees that new police officers would be hired and laid-off firefighters brought back.
But the infusion of additional revenue is not enough to offset losses as a result of the national and state economic crises. In addition, housing foreclosures loom as a major problem down the road.
Hence, fiscal watch has reared its ugly head. The township is taking the proper course of action — asking an independent entity, the state auditor’s office, to conduct an in-depth evaluation of the budget and to provide a clear answer to the question: How close is Boardman to experiencing a financial meltdown?