Monday, March 01, 2010

Draconian Budget Cuts Indicate Poor Management

Recent reports by many Maryland area news outlets are detailing some draconian budget cuts, especially education, that are needed in Prince George's County for this year's budget.

It's been my experience that any enterprise that's faced with this type budget cut has suffered poor, short-sighted budget planning in its history. I think Prince George's County fits that description.

The State of Maryland's legislature and leaders have a history of throwing money at education. It matters little if the funds are being spent wisely, it's one of those "Hey we're a well off state financially and here's some more money. Find a place to spend it!"

Well run local governments tend to use some proper perspective when added funds become available. They look into the future a bit to determine if it's an ongoing source or a short-term deal. Governments like Prince George's County evidently don't take time to do that.
Prince George's County government is kind of like an obese person with an uncontrollable appetite. They're going to eat everything placed in front of them. When the time comes that the food is no longer available, they are going to have severe pains.

Unfortunately, in the case of Prince George's County, this lack of intelligent government fiscal responsibility is going to cost an inordinate number of jobs. Likely these are jobs that were created and/or maintained with short term funding under the assumption that future funds would be available. The funding evidently no longer exists!

The sad part of this is that the media always tries to hype the plight of the folks losing the jobs, which I guess is the normal first media reaction, given their ratings mania. In reality, they should be taking the local jurisdiction to task for their obviously inferior fiscal management practices that produced this extreme situation.

We all have to deal with cuts at times, smart managers prepare for that possibility.

Ponder it,
JD

PS - This is just one more example of political leaders that are always looking to take the 'feel good' approach and coddle voters rather than focusing on their true job, which is not reelection, but prudent management of their jurisdiction.

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