City of Yuma is taking necessary steps on deficit

  Times are tough for businesses due to the slow economy, but they are also tough for government entities who depend on sales taxes and other consumer-generated revenue to help pay the bills.

  This fact hit home here last week when the city of Yuma announced it was anticipating a $3 million revenue shortfall this year. "We are ... being hit hard financially due to the slowdown in citizen spending and the drop in state shared revenues like the HURF (Highway User Revenue Fund)," noted City Administrator Mark Watson.

  The same decline in consumer spending and in taxes is having a huge impact on state government, as well as other cities and counties around Arizona, so it is no surprise that the wave is now washing over Yuma. The state shortfall is double trouble because of revenue sharing that goes to local governments.

  The important thing is that the city appears to be addressing the problem.

  Watson outlined plans to "weather the storm," which include a reduction in staffing of 100 people, suspending some capital expenditures, limiting travel and cutting expenses.

  There is no magical solution to this problem except getting expenditures to match revenue. Private businesses are facing the same issue and they have been taking many of the same steps.

  One note of particular gloom in Watson's report was his anticipation that the drop in revenue could continue for  24 months. Even economic "experts" are uncertain of the full scope of what is coming, but they know times will be tough for a while.

  Clearly, that means the city - and inevitably the county government, too - will be making some tough choices in the coming months as they struggle to match incoming money with outgoing money.

  Taxpayers will need to temper their expectations. Less money for government operations could mean reduced levels of service and even elimination of programs. Things residents have come to expect or demand may no longer be possible. Frankly, some are things that should not be expected in the first place.

  When the cuts are made, it will be important to divert available money to the key government functions like public safety, law enforcement and essential maintenance of public facilities. Other "extras" will have to take a low priority.