Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, January 18, 1992 TAG: 9201200200
SECTION: EDITORIAL PAGE: A-9 EDITION: METRO
SOURCE: AARON SMITH, CATHERINE WELLS and CHARLES SWITZER
DATELINE: LENGTH: Long
WITH MORE DATA, CITIZENS CAN BRAKE LOCAL GOVERNMENT SPENDING
IN SPITE of dramatic tax increases over the years, governments seem unable to effectively manage money without long-term borrowing. The following items illustrate this clearly at the federal, state, and local levels.
The federal deficit this fiscal year is expected to be $348.30 billion, or 29.6 percent more than the record deficit for the fiscal year that ended Sept. 30.
Virginia tax revenues will fall $567 million short of what is necessary to continue existing state government services for the next two years.
Excluding the assumption of almost $50 million of long-term debt, from the 1972-73 fiscal year through the 1989-90 fiscal year, the city of Salem had a total cash income of $566.89 million as compared to total cash expenditures of $577.75 million.
What does all of this have to do with "shift and shaft"?
In the Roanoke Times & World-News editorial Dec. 4, shift and shaft is defined as "a political game involving the devolution of responsibilities to lower levels of government, but without an accompanying shift of financial resources." What is seen by some as a game that shafts local governments can, under the proper circumstances, be an opportunity for citizens to help local governments more effectively manage their money.
The decision-making of elected officials at all levels of government is subject to undue influence by special interests and personal prejudices. Particularly at the federal level, and to a considerable extent at the state level, these influences seem beyond the control of average citizens. However, this does not have to be true at the local level!
Under what circumstances can citizens help local governments to effectively manage their money?
1. Citizens can insist that they be allowed to vote on local tax increases and cash expenditures that are not "usual and customary." This would force local elected officials to educate citizens on important fiscal matters. The collective wisdom of the voters expressed through the ballot box would then serve to check the influence of special interests and balance the personal prejudices of the elected officials.
2. Citizens can encourage local candidates and elected officials to actively seek, through ballot referenda, the opinion of all citizens on those local tax and spending initiatives that are not usual and customary.
3. Citizens can study their local government's sources and uses of cash. This cash-flow study is helpful because one does not have to be a certified public accountant or tax lawyer to evaluate the financial performance of their local government. Attention can be focused on what is really important - how the local government manages the money it receives from its citizens.
How can these circumstances be brought about by the average citizen? There are at least two prime resources available to Virginia citizens.
The first is the Virginia Freedom of Information Act. Government accounting practices and the reluctance of government officials are oftentimes obstacles to obtaining the needed cash-flow information. The cash-flow information can clearly show adverse taxing and spending trends. Persistent use of the Freedom of Information Act can overcome the obstacles.
The second resource is Virginia Referendum Advocates. The VRA is a committee of persons whose object is to promote, without endorsement, referenda throughout the commonwealth of Virginia at both the statewide and local levels. There is a local section of the VRA for the city of Salem, with plans to establish additional local sections in the Roanoke Valley and surrounding areas.
The VRA can help citizens prepare a Virginia Freedom of Information Act request, study their local government's source and uses of cash, determine what tax increases and cash expenditures are not usual and customary, and encourage local ballot referenda.
A cash-flow study was recently completed by the VRA for the city of Salem. The 1972-73 fiscal year was chosen as the starting point because this was the last full fiscal year before Salem's last local referendum. Cash facts such as those listed next resulted from analysis of this cash-flow study's findings.
After adjustment for inflation, the 1989-90 general property taxes per citizen were 42 percent higher than in 1972-73.
After adjustment for inflation, the 1989-90 total cash expenditures per citizen were 72 percent higher than in 1972-73.
Cash facts such as these easily show the need for local ballot referenda to decide on those tax and spending initiatives that are not usual and customary. An example of such needed referenda is the VRA-requested referendum for any municipal pool proposed by the Salem City Council.
Carl Sagan and Ann Druyan state that "if the citizens are educated and form their own opinions, then those in power work for us." Increased direct citizen involvement in the democratic process is necessary for good government. Shift and shaft provides a great opportunity for this involvement through increased use of binding local ballot referenda!
Aaron Smith, Catherine Wells and Charles Switzer are Salem citizens and Virginia Referendum Advocates members.