A responsible budget for tough times 8.11.11

Indianapolis Star Editorial
August 11, 2011
Indianapolis' 2012 budget can be summarized in three words: down, down and flat.
Down as in 6 percent spending cuts for city agencies not involved with public safety.
Down as in 200 fewer city workers (lost through attrition) out of a nonpublic safety payroll of 1,700 employees.
Flat as in no spending increases (or cuts) for the Indianapolis Metropolitan Police Department, the Sheriff's Department, the Fire Department and other public safety agencies.
Despite the cuts, Mayor Greg Ballard , in a meeting Thursday with The Star's Editorial Board, insisted that residents won't see a significant decline in the quality of city services. That's hard to accept, given that the number of city workers in the Parks Department, the Mayor's Action Center and other affected agencies could shrink by more than 11 percent in a year.
Still, Ballard had little choice but to cut spending in light of a sagging national, state and local economy. The city's income tax revenue is projected to drop by $19 million, a decline directly related to the weak economy. Property tax revenue is virtually flat. That's because of the voter-approved property tax caps but also the anemic real estate market.
Meanwhile, expenses -- for hard-to-control items such as fuel, health care and pensions -- are on the rise.
The administration arrives at a balanced budget not just with cuts ($20 million out of a general fund of $570 million). It also drains $40 million from the Downtown Tax Increment Financing district's reserves and collects $4 million from the Capital Improvement Board. All of that money would be used to shield public safety agencies from cuts.
Ballard contends that because the city has poured so much money into Downtown in recent decades, it's now time for the area to give back to the rest of the community. That's a credible argument in hard times. But it needs to be a temporary option; otherwise, the long-term health of Downtown will deteriorate.
The proposed budget certainly won't do anything to excite current or prospective residents or businesses about the future of this community. But it is a reasonable, responsible approach to stewarding this city during the hard economic times that afflict it and the nation.