An Important Development

Inside Basball Alert!!  What follows is quality public policy wonkery!!  I suspect it’s even mostly right!!

As pointed out by Mr. Randolph – The City Council adopted a Policy Statement Monday night that reads in part: 

The Citizens of the City of Manassas receive important, beneficial services from a variety of State, Federal and private agencies.  In addition, many City Departments rely on funding from State, Federal and private agencies. These State,  federal and private agencies are critical partners with the City and Manassas City Public Schools in providing services for our community. When these State, Federal and private agencies terminate programs, services or curtail funding, it cannot be assumed that the City will maintain those programs. The City’s ability to assume the financial reponsibility for State, Federal and privately funded services without significantly impacting other service areas or raising taxes is limited.”
POLICY STATEMENT #P-2012-02 – Prevent Supplanting State, Federal and Private Funds With Local Funds

What that all means is that when the state cuts funds earmarked for a certain program, we will pass those cuts straight through to that program.  We do this as one of the State’s favorite annual games to play is to cut the money that goes into what is called the “599 fund”.  This fund helps localities pay for police.  The Governor will make that cut and say he is reducing the 599 money -but- we can take it out of where we want.  It is generally presumed by the locals that the state is gambling that localities will take the money from someplace else and keep public safety whole. 

This has worked well for the state when a minimum of fun and games were necessary to balance the budget but now that wholesale change is required, the Governor has elevated the games to a level of fiscal absurdity not seen in recent years.  By advancing stimulus money for next year into this years budget, the Gov. is only delaying the day of reckoning.  Doubling down, in effect, that the economy will come roaring back.  This tactic troubles me as, unless we have a “V” shaped recovery, the state budget for fiscal year 2012 will be a first-class train wreck.

As an interesting aside, it is my understanding that the 599 fund was established (more or less) to buy peace between counties and the cities that are contained therein.  The counties were growing tired of the cities annexing some of their most valuable properties and essentially sued for peace in Richmond.  The 599 fund was established to buy off the cities.  What happens when the state stops paying for peace???  An interesting if esoteric and maybe meaningless question.  Someone would have to lawyer up and spend some real money in court to sort it out but the harder Richmond pushes, the more viable the option becomes….