If local gov't aids from the state constitute 30% of the city
budget and the state, with about 30 billion dollar biannual budget -has
deficit of 4.5 billion to get rid of (that's 2.25 billion per year), --there
is apt to be some 'revenue inhancing' actions which cuts the amount by a
billion or more. (cuts it down to 1.75 billion or less per year) Likely the
30% of state input to city budget won't be entirely eliminated. Maybe it
will be cut to 20%.
The city budget is in area of one billion per year
(corrections welcome). The city income does not come mainly from taxes, the
last I saw a city budget it was less than half came from property taxes.
Large amount comes from the vast assortment of 'concessions' such as the
convention center, Farmers Market and such, then the fees and etc., beyond
that the finance department can look at the whole expense budget and find
items to trim and find ways to economize.
City and State financial planning though, should not ignore the
effects of Keynsian Theory of economics, which says plan the budget to
enhance not reduce revenues. If taxes are too high business will be driven
out, reducing not increasing revenues, and if fees are too high, users will
be driven out, reducing instead of increasing general revenues, and etc.
A previous governor who left the State in a deficit budget had
spent $400,000 to plant flowers (weedpatches) around the freeways in path of
the Gorbachev visit. That category of expenditures should be looked at
first by both the State and City.
The budget is a substantial project in all years, major
attention should always be given to it, without which, of course the
city -and state- will have such problems.
James Jacobsen // Whittier
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