Example from Across the Pond

Several of us on council have commented that the budget review process that begins each year will be challenging and the budget process will encompass more than just the 12 months ahead. A significatly large part of the city budget is fixed costs with a suprisingly small portion directed toward discretionary spending. Fixed costs will increase significantly as the state will require local municipalites to contribute more into the employee pension system. The challenge for council is how to manage both fixed and discretionary costs and provide funds for city projects that promote growth in our town.

Several weeks ago the ruling party in the UK Parliment made historic budget cuts stating that the country could no longer operate under the current level of spending. Everything from the Queen's budget to the military was cut inculding 490,000 government jobs. That's extreme but the action was both painful and necessary.