Reducing Budgets and Maintaining Local Services Alaska Municipal Managerial Association Annual Meeting Nov. 14 and 15, 2016

Transcription

1 Reducing Budgets and Maintaining Local Services Alaska Municipal Managerial Association Annual Meeting Nov. 14 and 15, 2016 Vickie Williams, MBA, CPA, Dean and Jim Powell, PhD, Assist. Professor School of Management University of Alaska Southeast UAS Campus

2 Presentation Objectives Process and opportunities A combination of approaches Cost Cutting tactics Revenue-enhancing tactics Strategies Resources

3 Objectives How to approach budget cuts Provide the basics and options for budget reductions and revenue enhancements Strategies that are working in Alaska Identify resources and references

4 Process Draw on and engage city staff and public in the process - Identify low hanging options - Prioritize services - Identify how the community can be strengthened

5 Process and Opportunities Identify efficiencies in government processes Priorities - SWOT with the community

6 Process and Opportunities 1) Identify how the organization can be strengthened 2) Lead inclusively and encourage creativity and engagement at all levels of the organization rather then tightening controls and making topdown decisions

7 Process 3) Avoid eliminating only vacant positions that either randomly distribute vacancies or leave high turnover in agencies that are severely understaffed (holistic approach) 4) Avoiding structural reforms if possible (pension reform, health benefits etc.)

8 Process Source: Christopher W. Hoene and Michael A. Pagano, City Fiscal Conditions in 2009, Research Brief on America s Cities, Issue National League of Cities, September, 2009, p. 6.

9 A Combination of Approaches Cost-cutting tactics - Hiring freezes - Delayed facility & infrastructure maintenance - Across the board cuts in department budgets - Service cutbacks - Purchasing and travel restrictions - Equipment cutbacks

10 A Combination of Approaches Cost-cutting tactics - Employee position reductions - Furloughs, - Retirement incentives and employee benefits mods. - Mayor/Chair/Council Budget - Modification of budget process - Information Technology (IT) Remedies - Intergovernmental collaboration - Overtime

11 A Combination of Approaches Revenue-enhancing tactics - Fee increases & expanded Fee Services - Tax increases - Reduction of fee subsidies - Cash Management practices/investment Strategies - Lasing of government assets to outside parties - New Taxes

12 A Combination of Approaches Revenue-enhancing tactics - Fee increases & expanded Fee Services - Tax increases - Asset sales - Increased reliance on state/federal grants - Receipts from Utilities - Drawing on Reserve Funds

13 A Combination of Approaches Community volunteerism - Parks, trails, adopt a road, etc. - Assist with other services? - Rotary Clubs, Community organizations Economic development and clusters - creating jobs identifying & creating bright spots education - consider outside assistance - Investing in your community (community foundations)

14 A Combination of Approaches Sustainable energy - using local resources - grant opportunities Venture capital for entrepreneurs - Lots of startups that need capital Sealaska - Haa Aani - Path to Prosperity Business plan competition in Southeast Alaska, Focus on sustainable business Innovations Summit (Juneau Economic Development Council)

15 A Combination of Approaches Sustainable energy - Renewable Energy Alaska Project - Cold Climate Housing research center Example Kodiak 99.5% Electrical consumption Governance - University of Alaska Southeast/ MPA

16 Resources Facilitated by t he Juneau Economic Southeast Alaska Cluster Initiative Impact and Success February 2016 Page 1

17 Resources Community Budgets and Plans Alaska Department of Commerce, Community & Economic Development Division of Community and Regional Affairs Financial Doc. Delivery System FinancialDocumentsLibrary.aspx

18 Resources National Reports University of North Carolina, School of Government Budget-Balancing Tactics in Local Government BudgetBalancing.pdf National League of Cities /City-Solutions-and-Applied-Research/ City%20Fiscal%20Conditions% pdf International City Managers Association Management Policies in Local Government Finance icma.org/documents/document/document/307301

19 Thank You Vickie Williams, Jim Powell,