February 9, 2003 8:08 AM

Penny wise, pound foolish

Saving dollars, yet spending millions

Every government entity, regardless of size, has budget issues. In this day and age, money is the one thing there is never enough of. Dealing with that reality is what separates successful governments from those who muddle their way from one financial crisis to another.

Houston, sadly, is a city whose government still hasn't learned it's lesson. It is one of the most inefficiently-managed, penny-wise, pound-foolish local governments out there. That is the primary reason Channel 13's investigative reporter Wayne Dolcefino still has a job. Finding waste, inefficiency, and incompetent and/or unethical management practices in Houston is hardly a challenge.

BY THIS TIME next year, closing four of our regional libraries every Sunday will save an estimated $440,000.

We'll spend a whole lot more than that paying overtime for all the police and other emergency personnel to provide security for the Super Bowl. One official told me the predicted cost of that is $750,000 to $1 million.

But I don't trust that prediction because most every time the spenders tell us what something is going to cost, the actual price tag winds up a whole lot higher. The new baseball diamond that was going to cost $250 million wound up at $310 million. The new football field that was going to cost $310 million wound up at $449 million. The new basketball court that was going to cost $160 million wound up at $202 million.

We were promised that spending all that money would not cost us anything if we didn't rent cars locally or stay in Houston hotels.

There is one place where Houston could go to learn a great deal about effective fiscal management. St. Paul, MN, has for years used a citizen's budget review board to examine all aspects of city government for waste and inefficiencies. It's an idea that could make a lot of sense for a city the size of Houston. Bureaucrats too often get caught up in turf battles. A citizen's review board can be made up of people with private sector expertise in areas that may simply not be available within the city bureaucracy. And what is so wrong with having a few sets of fresh eyes examining how their tax dollars are spent?

[L]awyer Clark Isaacs offers a suggestion that could help our public servants avoid getting into such a budget mess in the first place: a citizens' budget review board.

He said when he lived in St. Paul, Minn., there was such a board made up of business people, lawyers, officers and directors of banks and corporations, housewives, retirees -- a cross-section of the community, in other words.

"We would meet all during the year," Isaacs said, "but most particularly, we were the start of the budget process for each department. We all were volunteers. No one was paid for the meetings. ... We would come with ideas on how to do things better. How to set priorities."

For example, he said, the committee would discover abandoned city property -- buildings or equipment -- that could be sold or put to use. Once, the police department wanted a gym facility downtown and the fire department wanted one, too, and neither one knew about the other. So the committee got them to share one facility in a building the fire department already had.

For another example, the city and the county operated separate computer systems, but in the same building.

"Each was understaffed and needed more equipment each year," Isaacs said. "Overtime costs were running rampant, and the mayor and City Council were faced with such increasing costs that it was apparent something had to be done. The Budget Review Committee was called in to look at the situation, and added to the ranks were some volunteer experts from the major computer companies. The net result was combining both the city and county into one computer system. One operating staff and no overtime were the immediate benefits."

Isaacs said the committee would tour sites around the city in a bus, visiting projects such as street lighting or sewer placement. Renovation of the city zoo also came under the watchful eye of the committee.

"The mayors -- of both political parties -- endorsed the process," he said, "and would leave a number of people on the committee who were experienced. It was not a political patronage position. It was hard work, long hours and no pay. I served for 10 years. Liked every minute of it and would hardly ever miss a meeting."

Anyone who drives the streets of Houston knows of the potholes, the broken street lights, and other issues that should be addressed by the city but are not. Yet we have enough money to provide security for next year's Super Bowl, but not quite enough to keep four libraries open on Sundays? Perhaps it is time for city government to receive a fresh look.

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This page contains a single entry by Jack Cluth published on February 9, 2003 8:08 AM.

Do I sense a double standard? was the previous entry in this blog.

Something about a "slippery slope".... is the next entry in this blog.

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