AT ISSUE: Utica, New Hartford projected sales tax down; spending must
be, too
When your household income falls short of your household
budget, there are several ways to make ends meet:
- Borrow money.
- Dip into savings to make up the shortfall.
- Cut back on spending.
In most instances, the third option is the best way to go. That is especially
so when the shortfall is on the back of taxpayers.
That’s currently the
situation in both the city of Utica and the Town of New Hartford, where sales
tax revenue to date is below budget. In Utica, officials say the $10.35 million
collected so far is $444,000 less than expected; New Hartford, meanwhile, is
$550,000 below what was anticipated. The town budgeted for $5.5 million, but has
received just over $4.9 million.
Utica Budget Director Tony Arcuri said
the initial budget projections were made before the economy took a dive. Sales
tax revenue was especially affected by the closing of A.C. Moore Arts &
Crafts, Linens ’n Things and Steve & Barry’s — all in Riverside Center.
Still, the city could realize a slight surplus for the 2008-09 city budget due
to unexpected revenue from insurance recoveries, the state Consolidated Highway
Improvement Program and several other sources, said Comptroller Michael
Cerminaro.
In New Hartford, Supervisor Earle Reed said the town may dip
into its savings account to make up the shortfall, although he doesn’t like that
idea because the town has gone that route the past couple of years.
A
better option would be to heed the suggestion of Deputy Supervisor David
Reynolds, who said the town is looking at ways to cut spending in these
difficult economic times.
He’s got it right. In fact, despite the
projected surplus due to unanticipated revenue, Utica, too, would be wise to
look at spending cuts. Relying on uncertain revenue — whether for a personal
budget or municipal spending plan — is risky. And in these economic times, risks
should be avoided at all costs. If the unanticipated revenue is not forthcoming,
you end up running a deficit budget. That’s not responsible fiscal
management.
There are a few rays of sunlight. Reed pointed to recent
Oneida County-wide sales tax figures for the first quarter of 2009 that show a
slight uptick over the same quarter in 2008. That’s a good sign, but fiscal
watchdogs still need to err on the side of caution by doing what just makes good
sense.
If the money’s not coming in, it shouldn’t be going out. Cut
spending.
