9/30/2010Posted by MJ
A post over at Urbanophile hits a thought I've brought up here several times.
...That’s the situation too many places find themselves in. They can’t afford to be cities, and so are really in the process of an extended civic going out of business sale. As with a company that has been issued a going concern warning by its auditor and is about to be delisted from the stock exchange, people smell the whiff of death about it, so it doesn’t attract many customers or investors. Which is to say that people aren’t moving there – they are moving out if anything – and businesses are staying away. Who wants to stake their personal or financial future on a place that might not have a future of its own?
This is something merely balancing this year’s budget isn’t going to fix. What’s really needed is to restore investor confidence. That’s going to take more than balanced budgets. Just as most companies don’t fail because their costs are too high, but rather because of the forces of creative destruction, excess leverage, poor product positioning, quality and customer service issues, a bad strategic concept, etc., most cities don’t fail because their budget’s too big, but because they are no longer relevant to the marketplace. They are selling an inferior version of a product that customers no longer want to buy. For too many struggling cities, especially former industrial towns, even if their current service levels could be delivered for a budget of zero that wouldn’t save them.
The real issue with many cities is that their leaders spend too much time grappling with short term issues, particularly budgets in the present day, and not nearly enough time thinking about where the trend line is taking them and what they need to do to drive a materially better outcome in the future...A lot of politicians run on "budgets". While important to watch over (or even "save" during some down times) there needs to be a bigger vision of what we want to become and what we are going to do to get there. A place where people want and feel safe to invest their money and creative efforts.