Budgeting to build a better New Orleans

We all saw the signs of a troubled 2010 city budget on the horizon during the 2009 budget process one year ago. The impact of a smaller, albeit growing, post-Hurricane Katrina city population, compounded by the nation's significant economic struggles, has taken its toll on the city's coffers. A dearth of reliable recurring revenues, pending lawsuit settlements and an imminent 2000 Pension Bond issuance all pose serious threats to the city's operating budget in the coming year, in the figure of a formidable $68-million shortfall.

As a City Council, it is our charter-mandated duty to deliver a balanced city budget in little more than three weeks. Mayor Nagin has proposed options such as 12 furlough days, across the board cuts and revised city fees. Most of these proposals are challenging for both New Orleans citizens and City Hall employees. The council pledges we will work diligently during this period to make the most reasonable, equitable and least-injurious budget decisions possible.

Just as important as delivering a balanced budget, in light of the city's challenging financial circumstances, is to reform the city's structural process for managing future budgets. The recent draft report of the 2009 budget process by the Office of Inspector General determined the city's budgeting process is "fraught with difficulty and conflict" and asserted seven reasonable recommendations:

. create a more transparent annual operating budget

. develop a meaningful process to align spending decisions with citizen priorities

. implement an effective system of performance measurement for all city programs

. develop a comprehensive five-year capital program

. develop and adopt a separate budget for the use of long-term community recovery funds

. require all offices, boards and departments to comply with the Home-Rule Charter requirement to file annual reports

. expedite the procurement and implementation of a fully integrated financial management system

For decades, the city has been band-aiding department budgets -- due in large part to the city's present protocol and limitations on revenue sources. As a municipality, we are not alone, and the national economic downturn only further reveals this dysfunction. By marshaling our collective strengths, the council can, and needs, to adopt more efficient systems for handling the budgetary process. Reforms such as delivery of the budget to the council prior to 30 days before the charter deadline, and an earlier and more inclusive process by the council and citizens are examples of measures which would benefit the overall community.

We should sincerely take heed of the OIG's suggestions -- and not halt our improvements there. As we move away from the uncertainties and anomalous circumstances of post-Katrina budgets and needs, we as a city should come together openly and honestly about what we feel is essential and what, financially speaking, is important.

Armed with that purpose, I propose between March and May city leaders hold a dedicated series of public hearings akin to constitutional conventions, giving the people an opportunity to outline their budgetary priorities. This will allow the incoming mayor and council to diligently work toward beneficial budget reforms as per the OIG recommendations and public contributions so that once sworn in, proper ordinances or Home Rule Charter amendments can be implemented and voted on next fall.

To do what is right for the city, especially with an increasing population and subsequent demand for city services, it is tremendously important we focus on new revenue streams, going forward. This public discourse should include consideration of best budgetary practices around the country and should welcome creative alternatives for dealing with potential future shortfalls. We also should discuss progressive measures for establishing and growing a stable, realistic revenue base.

I believe the city's future is indeed bright and it is our responsibility, as both elected leaders and citizens, to ensure future budgets present the best quality of life possible for all New Orleanians.

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Arnie D. Fielkow is New Orleans City Council president.