Absent Increased Productivity, A Budget Quagmire

Absent increased productivity, a budget needs to only grow by an amount roughly equal to the growth rate of population plus the rate of inflation to continue to offer a constant level of services.

From the 2000 Census to the 2010 Census, here’s what happened in Madison

• Population growth equals 2.3%
• Inflation growth equals 22.6%
• Budget growth equals 76.8%
• Excess Budget growth equals 51.9%

Ouch! Does that mean that more than half our budget growth is for “non-essentials”?

Actually, that analysis is a bit unfair, because while some adult populations shrank during the decade, the school age population, which accounts for 70% (or more) of the total budget, grew during the first half of the decade and shrank in the second half.

Looking at the first half of the decade and the Education Budget for that period we find
• Student enrollment growth equals 9.9 %
• Inflation growth equals 11.6%
• Education Budget growth equals 34.8%
• Excess Education Budget growth equals 13.3%

Looking at the Education Budget for the second half of the decade we find

• Student enrollment decrease equals (5.5%)
• Inflation growth rate equals 11%
• Education Budget growth rate equals 28.9%
• Excess Education Budget Growth equals 34.4%

The question then becomes, what did we receive or acquire for our Excess Budget growth? Some might answer that we have purchased a new Senior Center, a new Ambulance Facility and a big new Park. But that is not quite true, because while we voted to build those facilities, we have only paid a tiny amount of their total cost. We will be paying the balance over the next decade and a half by raising taxes to pay for debt service in each new budget.

And so I ask the taxpayers: What additional services have you received from the Excess Budget Growth? Are the kids 34% smarter? Are town employees 34% richer? We know the taxpayer is not. Do we have more employees doing the same amount of work? Are our streets repaired 34% faster? Are our new buildings 34% more efficient? Is a plan in place to develop new taxable assets to replace faltering revenue?

What 21st century priorities have been met by the excess taxes raised to meet the growth of a decade of Excess Budgets? Tell me your ideas and I will include them in my next blog discussing ways to improve productivity.