We had the pleasure of visiting with Salt Lake County Mayor Peter Corroon last evening. He described Salt Lake County’s main budget problem is that with interest rates so low county investments likely will yield $9.4 million less than expected this year. Similar shortfalls are predicted in 2010.
It strikes us that this is the same problem that every retiree in the state is coping with: lower yield on their savings resulting in reduced income. There are really only two solutions for the healthy and only one for those not fortunate to enjoy good health – cut costs or go to work and earn more from another source.
Mayor Corroon has suggested that the economy is not healthy, other sources are not available, and that only one responsible option exists -- to cut costs (and some of those cuts may hurt).
We also had the pleasure of discussing this issue with Council Chair Joe Hatch. The Democrats on the Council believe that by asking for a small sacrifice from a large number will cause less pain in the long and short term. The Council Democrats are asking for less than $1 per month from the typical homeowner.
The Council is rightly concerned about another steep drop in revenue from property taxes if housing prices have declined dramatically. This could push any future tax increases to levels far beyond what the public is able or willing to absorb. Regular small increases are more feasible than large occasional increases – just ask any Davis County Commissioner. The Council’s concerns are legitimate and a strong reason for the good management of Utah’s second largest governing entity.
Salt Lake County has already absorbed some painful cuts like the suspension of hiring and matching contributions to retirement programs. We appreciate the sacrifice. But, sadly, the times call for more – and over time perhaps much more.
We are sorry to see Democrats publicly at odds with one another. But we agree that the debate is a good one and waged by responsible people who are concerned about the public well-being.
The options on the table are either additional cuts in services or a small increase in taxes . . . or perhaps we do what retirees across our state are doing -- clean out the attic and put our personal effects up for sale on e-bay (just kidding, of course, the county already auctions off surplus property).
Other solutions, anybody?


