GOVERNMENTAL FORESIGHT NECESSARY FOR BUDGETING

Governmental bodies, entrusted with the public's money, must be acutely aware of the ebb and flow of economic circumstance. Because times of prosperity are occasionally interrupted by stagnant periods, those with control of fiscal pursestrings must be watchful and foresightful in how they apply civic revenue. Officials of the city of Cape Girardeau have apparently exercised this type of vigilance in recent years, as evidenced by the 1991-92 budget package unveiled last week.

To be sure, the city's budget remains a growing enterprise and we don't necessarily view that with comfort. The proposed package for the coming fiscal year is above $27 million; a decade ago, in fiscal year 1981-82, the city budget was $10.3 million. It is a daunting escalation in governmental fiscal obligations.

Don't read that, however, as meaning the budget is out of control. City officials have acted responsibly in setting aside sufficient reserves in recent years to compensate for a possible recession. Sales and service taxes make up two-thirds of general fund revenues for the city. With the general downturn of the economy during the current fiscal year, sales tax revenues particularly have fallen off, with an $800,000 shortfall projected.

As a retailing hub, Cape Girardeau has a city budget that is especially sensitive to general tremors of the economy. A softening of sales gets the attention of City Hall just as it does the business community. Through alert management, however, no panic is necessary. There are a couple of good things to be said of this: one, most economic analysts maintain the current recession has bottomed out and the nation can expect better fiscal days to come; and, two, the city has planned well for the contingency of some economic erosion and municipal services will not be trimmed.

City government here operates within its means; unlike the federal government, local municipal officials are charged with delivering a balanced budget. When tax revenues fall short of expectations, the general belt of public expenditure must be tightened; in this case, capital outlays will be delayed and equipment replacements will be deferred. From time to time, citizens have been asked and will again be asked to provide more support for city efforts, such as improved parks or better roads. If support is there, the work gets done. If support is not there, then people at least have had a chance to speak to the issues and determine the city's course of action.

Given the current revenue setback, city officials are lowering their income expectations with this proposed budget and that seems a safe strategy. While $27 million is not a trifling amount of money, applying some budgetary brakes at this level of government is a manageable task. Our hope is the economy picks up to the point that revenue projections are exceeded and not deficient next year. The added cash flow would benefit more than just the public coffers.