Like most other US cities, San Diego has been hit hard by the national economic meltdown. We've got ebbing sales taxes, record-high unemployment, mounting foreclosures, and tanking revenues from our mainstay tourism industry. Our mayor has put the squeeze on municipal labor unions and tapped into mysterious slush funds to backfill an enormous $60 million gap in our municipal bank account so the city can continue to pay its bills.
It's Not Just the National Recession
If San Diego's dire straits were simply a reflection of the national recession, we'd count ourselves lucky. But there's a more potent threat hanging over us that could singlehandedly decimate our city. A decade ago, city officials entered into an agreement with municipal union leaders to underfund the municipal pension system while simultaneously amping up pension benefits. With a wink and a handshake the city's future was put up as collateral. It's been a losing proposition for the public ever since.
When Mayor Sanders took office in 2005 there was a $19 million budget shortfall, prompting him to say, "Our city's mired in a financial crisis of historic proportions." Four years later our budget shortfall has mushroomed to $60 million, dwarfing all previous "historic proportions." And it's not over. According to reputable forecasts, today's budget deficit will look like chicken feed compared to next year's shortfall…and the next…and next.
Why? Because each year, a growing percentage of our city budget is earmarked for expanding pension-related debt and expenses, leaving an ever-shrinking pot of money to pay for ordinary city services. Even a miraculous recovery in the world economy won't change the fact that San Diego's chances of emerging whole from our self-inflicted pension morass appear dim.
The Public Can't Afford to be Passive
We need to change course and start keeping closer tabs on how the "people in charge" are proposing to fix our financial problems. Keep in mind that the "people in charge" were responsible for the ill-advised, destructive decisions that could cripple our city for many decades to come. Business as usual, either by the public or our city officials, is no longer a rational or viable option in San Diego.
the public has the right to open and accountable government
Thursday, April 30, 2009
Blog Archive
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