Short-term cuts benefit the long term

Since taking office on July 1, we have been working diligently to fix the nearly $9 million deficit still remaining in this year's budget, preparing a balanced 2010 budget and putting together a plan to restore the long-term fiscal health of the city. If we do nothing and continue spending like we have in the past, we face annual deficits of between $20 million and $35 million for the next five years, even if we tax to the cap.

My "take action now" plan is designed to bring city spending and revenues back in line. While challenging in the short term, trimming spending now will return the budget to a level that is more realistic and better able to adapt to uncertain economic conditions. The plan works by creating $20 million in savings in 2010 and another $25 million in 2011. Making the hard choices now means these savings will carry forward and create balanced budgets in the out years.

Reducing the budget means cuts to both city employees and services. Telling city workers that they no longer have a job is not pleasant, and it's regrettable that we find ourselves in this situation. In total, 192 positions are identified for elimination in the 2010 budget. Of those, 133 are vacant, which means 59 people out of the approximately 3,000 municipal employees are slated for layoff.

No cuts are proposed to front-line personnel in the police and fire departments, and the rolling closures of individual fire apparatus will come to an end on Jan. 1. The 2010 budget also maintains the goal of clearing streets of snow within the same 72-hour window. Users of libraries, pools and recreation programs may notice reductions in availability and hours. It's not ideal, but we must realize these savings. Because of the size of the deficit, all departments have to share in the reductions.

Given our challenging economic times, it is not appropriate to unfairly increase the burden on property taxpayers. Our budget proposal remains $10 million under the tax cap. Even so, we find ourselves with a modest rise in property taxes next year. I hope that by the time we do first-quarter budget revisions, other revenues will have recovered enough to make this tax increase unnecessary.

When I was on the campaign trail, I heard loud and clear from citizens about how government could do its job more efficiently. Then when I came into office I asked taxpayers to send ideas to me about how we could save money. Our award-winning Tax Savers program has received tremendous response from citizens and employees. I want to assure the public that we are looking at a wide range of options for making our local government more productive and cost effective. As with anything in government, it takes time to effect real, substantive change, but we will get the job done.

I appreciate all the people who took time to attend and participate in the three public hearings on the 2010 budget. I look forward to working with those who testified to develop new strategies to support various programs and institutions. Together, we can improve the quality of life that makes Anchorage such a special place to live, work and raise a family.

Dan Sullivan is mayor of Anchorage.