03-02-09, Bruce Philpott’s Critique of Glendale News-Press Article, “New budget goes to council”

The Glendale News-Press article “New budget goes to council” by Jason Wells is misleading to the readers because the overall additional shortfall in the General Fund for the remainder of this fiscal year is over $8 million. That, coupled with the original $10 million projected deficit now has a combined total of $18 million. While the city continues to focus on the General Fund budget, a more accurate picture of the city's financial condition is found in the "Changes in Fund Balances, Government Funds" that is found in the Comprehensive Annual Financial Report (CAFR - Page 129).  It is there that the numbers reveal a more disturbing picture. CAFR reports that we have spent $237,000,000 more than we have received in revenue since 2002. In addition, the negative cash flow for this year is projected at another $88,000,000, pushing our deficit spending to more than $300.000.000. This irresponsible spending is unsustainable and must stop.

During these harsh economic times it is better that the city government tighten its belt than to impose new revenues in the forms of taxes and fees. There is plenty of room for belt tightening in the city since the city's workforce expanded by 31% over the same period that our general population grew by 5%. This 31% growth in the workforce has added $50,000,000 in costs annually, an expense that we cannot continue to absorb. The lack of leadership on the council to address these critical issues is why I keep hearing from voters for the need for new leadership. I believe that my experience as a special assistant in the city manager's office in Pasadena, dealing extensively with municipal budgets and finance, gives me the kind of skills to restore the prudent and affordable spending that voters are seeking.

Bruce Philpott