Quote:
Originally Posted by detbuch
There are many instances of private sector businesses that ask for and get concessions from employees in order to survive. Private sector employees are probably more vulnerable in this respect because their companies can actually go out of business, whereas municipalities don't depend on profitable income, but the taxes imposed on the private sector. So long as there is a private sector to tax, the public sector will exist.
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Totally agree with your 1st point DB; things are tough for "everyone"...including municipal employee's. A couple of points to consider in your private sector arguement. The "widget co." sells a bunch of widgets to consumers, makes a profit & hires a few employees. Things are lookin good...until the widget market dries up, then with less "demand", less $$ is coming in and something has to give. Maybe it's the co. or the employees that take the hit, regardless it's the reduced demand for the product that causes the problem and it's not really feasible to pass the costs on to the consumer due to decreased demand.
The situation for municipal government isn't the same; generally the demand for services increases, especially in a growing community (Mansfield?) that sees lots of residential development...more kids in schools, more roads to plow, etc. Municipal gov.is not a "profit making" enterprise, it's business is to provide public services at cost. The revenue coming into municipalities is severly impacted by the economy; less state aid coming in & reduced RE tax revenues due to delinquencies resulting from the poor economy, etc. However, municipalities are required by law to submit a balanced budget every year, so with 2 1/2 limitations and reduced revenues there are only so many options. Municipal governments responsibility is to operate as efficiently as possible while meeting the needs of residents, but beyond that when costs exceed revenues who should pay. It's either cut services, make public employees absorb the losses or everyone pays their fair share. Having just gone through the "budget battle" I can tell you that fat in municipal budgets is a thing of the past and the projections for the next fiscal year are worse. If you knew how many municipalities are close to "going out of business" you'd be shocked. It's time for tough "responsible" decisions on everyones part...I'm just glad I drive a 4WD truck and my kid is out of school!