Great Leaders Don’t Rely on Data Alone

Posted by The Govistics Team in Blog - (0 Comments)

Evidence-based decision making is best when data are properly used, when good judgment hasn’t been trumped by bad numbers, or good numbers twisted to support an inappropriate conclusion. Just collecting data, tying it to outcomes and using it to make comparisons isn’t enough.  Numbers must be accurate and they need context. Data are essential to great leaders, but numbers don’t tell the whole story.

Let’s say I wanted to invest in a technology company.  Being a devoted iPhone user, I am predisposed to liking Apple products.  With a few clicks of my mouse I find Apple has earnings per share (EPS) of $13.87.  Is this good?  I quickly search for Google and learn its EPS is at $8.75.  Should I be convinced that Apple’s numbers make it a better investment?

As a good consumer I should ask: Are the metrics accurate?  EPS is a well-known measure of corporate profitability and my source was reputable.  Are the metrics comparable?  In this case, yes, but only after I checked that the EPS numbers covered the same time period.   What do the metrics tell me?  They give me insight into Apple’s and Google’s profitability.

Clearly, that is not enough.  I’d like to know whether their EPS numbers met Wall Street expectations.  I need to track historical performance; read some forecasts; learn about planned products and global expansion, etc.  EPS is a good metric, but it only starts me on the path to making an informed decision.

In my day job, I often compare the performance of one local government against another.  Using CGR’s “Govistics” tool, I discover that the City of Rochester spends $376 per capita on police services, Syracuse spends $331 and Buffalo $291.  So do I vote in the next mayoral election for someone who is committed to bringing police costs in line with our peer upstate communities?  Or, conversely, do I vote for the candidate who promises to maintain the city’s strong commitment to safe streets?

Again, are the metrics accurate?  The data are the most up to date (2009) that let you compare communities across the U.S.  The data source is also well documented and reliable.  Are the metrics comparable?  The site says the data are from the same source and calculated the same way.  What do the data tell us?  They’re about total costs relative to the population.

But again, this just starts me down a path.  I now want to know more about the demographics of each city; study their crime rates, policing strategies (what is driving the number of police officers?), or the average age of the workforce.  Bottom line: Benchmarking with data is what starts good investigations and helps direct you to where to dig deeper.

Benchmarks are useful as conversation starters because they:

  • Point out differences and similarities;
  • Provide context for fiscal/operational goals; and
  • Provide accountability for performance.

Benchmarks cannot:

  • Definitively identify what is right or wrong;
  • Identify appropriate fiscal policy or staffing levels; or
  • Tell the whole story.

In today’s sound bite society, we are bombarded by information. Benchmarking can help you figure out what’s noise and what’s not.  But, great leaders use data and benchmarks to start conversations, not finish them.

Originally Posted at: http://www.policy-wonk.org/scott/great-leaders-dont-rely-on-data-alone/

 

Govistics Gets Fresh Data, New Feature

Posted by The Govistics Team in Blog | Help | Screenshot - (0 Comments)

After the recent release of data from the 2009 Annual Surveys of State and Local Government Finances, the Govistics database is now up-to-date with new information on the finances of individual governments.

The new data rolled into Govistics includes revised data from the 2007 Census of Governments and from the 2008 Annual Surveys of State and Local Government Finances.

Both the 2007 and 2008 revisions include:

  • Indiana Individual Income Taxes: Individual income tax revenues and intergovernmental revenues from the state have been revised for Indiana local governments to reflect classification changes.
  • North Carolina General Sales Taxes: General sales tax revenue and intergovernmental revenues from the state have been revised for North Carolina local governments to reflect classification changes.

In terms of the new 2009 data (it takes the Census Bureau a long time to process all of the data they receive from the Annual Surveys of State and Local Government Finances, which is why we’re just receiving 2009 data now), the chart below tells you how many counties and cities/villages participated in the Survey (2009) compared to how many participated in the U.S. Census of Governments, which takes place every five years (the next one takes place in 2012, the last one took place in 2007):

Now, when you’re using the Govistics database, for many municipalities and most counties, you’ll see 2009 data right away where you used to see 2008 data:

That year dropdown menu is actually a new feature that allows you to select which year to show in the visualizations, something you couldn’t do before:

The list you’ll see when you click on the down arrow is of the years for which data are available for your selected municipality, state, county or school district. If you look up a major city, the list of years will likely be quite long.  If you select a small village, the list may be relatively short.

If you hover over the word “Years” above that menu, you will see a message explaining that the list is only for years where data are available and have been reported.

We hope you enjoy the new data and the new feature! Remember, all county- and state-level data are free.

,

What’s free? What’s not free?

Posted by The Govistics Team in Blog | Help - (0 Comments)

You may be aware that we recently announced our intent to release all state and county data for free through Govistics and unveiled a new-and-improved interface. This post should serve as a quick primer on how to access and use the free data, if you’re unfamiliar with Govistics.

Govistics is a searchable online database allowing users to view, track, compare and download U.S. Census of Governments data showing revenue, spending, employment and payroll information for 39,000 state and local governments and spending and revenue for 15,000 school districts nationwide. State- and county-level data are free, and a subscription for as little as 99 cents unlocks access to the full spectrum of information in Govistics.

The New Interface

First, an introduction to our new landing page interface.

We simplified it quite a bit so it should be fairly self-explanatory. Without having to log in, you can use the search bar to type in any county or state name and you can access the full complement of the Govistics data on that government and its peer governments for free. A drop-down list will appear as you type in the name, and you can just select your choice from that menu.

After you click the name of a county or state, here’s an example of what you’ll see:

Without diving too far into detail, here’s what you have access to:

  • Both total spending/revenue figures and spending/revenue for several categories and sub-categories (notice the drop-down menu under “Spending Category”) for the most recent year that U.S. Census of Governments data are available for that particular county or state;
  • Both total payroll and employment figures (payroll is the aggregate $ spent on salaries, employment is the aggregate # of employees) and payroll/employment figures for several categories and sub-categories (see below);

  • Historic trend data for the last 10-11 years in spending and revenue and employment and payroll for all categories and sub-categories (see below);

  • The ability to compare spending and revenue data with peer governments that you can either have Govistics generate for you or you can generate yourself (see below);
  • The ability to download Excel spreadsheets for all data (the “Download Excel File” button follows you from page to page);
  • Serious crime data sourced from the FBI Unified Crime Reports, plus the ability to track trends, to drill down into various sub-categories (property crimes, burglaries, etc.), to compare with peer governments, and again to download Excel spreadsheets (see below);

No matter where you go in the database, you will be able to easily access the “source” of the data by clicking the “Documentation” button at the bottom of the menu on the left-hand side (important for researchers and journalists).

You can always easily change your location by typing in the name of a new county or state in the upper right-hand corner search bar.

If, assuming you’re not logged in, you type in the name of a municipal government or school district, here’s what you’ll see:

That provides a good segue to the next category for this “primer”…

So What’s Free, Exactly?

Without logging in, without subscribing, you can access all U.S. Census of Governments and FBI Unified Crime Reports data for all 3,000+ counties across the country and for the 50 states. This is all for free, plus you don’t ever have to give your name or email address.

And What’s Not Free?

In our database, we have U.S. Census of Governments and FBI Unified Crime Reports data on file for approximately 39,000 towns, villages, boroughs, parishes, townships, cities, and just about every iteration of local government you can think of.  We also have all the spending, revenue and historic trend data for 15,000 public school districts across the country.

For that level of access, you can pay 99 cents (we use PayPal) for one full day (you provide your email address and come up with a password, and then you can log in at your convenience). You can alternatively pay $14.99 for one full month (good if you’re working on a research paper or another project with a deadline coming up in a couple of weeks), or $49.99 for a year (great if you’re a wonk by trade or at heart, a public official, or otherwise are occupied with issues of public finance on a regular basis).

Who Uses Govistics?

We have lots of individual users from across the country who sign up for one-day accounts. We have even more (hundreds) who peruse the database day-to-day for free.

Otherwise, our users are in academia. Columbia University, the University of Rochester, and St. John Fisher College are all among our institutional subscribers, meaning that all students at those colleges have full access to Govistics if they log in from anywhere on campus. We also have users who are policy-makers, some who are interested in tailor-made versions of Govistics for their needs (we offer a “Regional Dashboard” option).

Where Do We Get Our Data?

See our “About Data” page. The U.S. Census of Governments provides us with the spending/revenue and employment/payroll data we need for all governments and school districts. The FBI Unified Crime Reports provide us with all serious crime data for local governments.

Why Should I Care?

Never before have U.S. Census of Governments data and FBI Unified Crime Reports data been presented in such a user-friendly format.

Govistics is easy-to-use and provides an astonishing level of detail. You can compare governments and school districts apples-to-apples, download Excel spreadsheets for your research purposes at the click of a button, and develop an increased level of understanding on the differences between government and school district priorities in regions across the United States.

Govistics has been called by one user “the most comprehensive public finance database on the web,” and we are proud of that distinction. Please take the time to explore the site. We hope you find it not only helpful, but fun!

 

 

, , , ,

40 Municipalities, 1 Famous Journey

Posted by The Govistics Team in Blog - (0 Comments)

Just type in "Plymouth" on the Govistics.com search bar, and the drop-down list gives you 37 municipalities named for the Pilgrims' landing spot.

Last week, we brought you a post regarding governments named after Thanksgiving’s centerpiece: the turkey. We heard about another handful of Thanksgiving “fun facts” through the U.S. Census Bureau.

There are 37 places and townships in the United States named Plymouth, as in Plymouth Rock, the landing site of the first Pilgrims. Plymouth, Minn., is the most populous, with 70,576 residents in 2010; Plymouth, Mass., had 56,468.

2007 is the most recent year for which data are made available through the U.S. Census of Governments (Govistics' data source) for municipalities of Pilgrim Township's size.

There is just one township in the United States named Pilgrim. Located in Dade County, Mo., its population was 132 in 2010.  Like their namesakes, Pilgrim residents are a mobile bunch. See above: 100% of their spending in 2007 went to transportation! We checked into it: looks like the money goes to highway/road maintenance. Their local government doesn’t have a website.

Mayflower, Arkansas, named for the famed ship that brought the Pilgrims to their landing place at Plymouth Rock.

And then there is Mayflower, Ark., population of 2,234 in 2010, where 31 percent of spending was dedicated to utilities in 2008. Back during the days of the real Mayflower, there really weren’t any government-owned-and-operated water, electric light, and power/gas supplies to speak of (that’s the U.S. Census of Governments definition of “utilities”)! There’s also a Mayflower Village, Calif., whose population was 5,515 in 2010.

It goes without saying that the journey of the Mayflower and the Pilgrims was an influential one!

Happy Thanksgiving to all of you. We thank YOU for reading, and we hope that we can continue to provide you with engaging dinner table discussion topics!

Happy Eating!

, , , , ,

CGR Unveils New and Improved Govistics Interface; Offers County/State Data for Free

Posted by The Govistics Team in Blog | Notes - (0 Comments)

The Center for Governmental Research (CGR) is now offering CGR Govistics site visitors free access to spending, revenue, employment and payroll data for 3,000+ counties and 50 states across the U.S. You can also download the data to Excel spreadsheets. Previously, you had to subscribe to CGR Govistics to browse state and county data.

To view, compare, download and map trends with U.S. Census of Governments data for all 54,000 local governments and school districts also in the database, you can subscribe for as little as .99 cents. CGR has also made numerous improvements to the Govistics interface, making it simpler to use and easier to navigate.

CGR Govistics is the only place on the web where you can quickly and effortlessly explore U.S. Census of Governments data. Trend lines, pie charts, customizable comparisons, and spreadsheet downloads make CGR Govistics ideal for any citizen, government official, or researcher. The database has more than a decade’s worth of data for use in mapping historical trends.

Highlights:

  • CGR unlocked spending, revenue, employment and payroll data for 3,000+counties and all 50 states on Govistics.com
  • Subscriptions cost .99 cents and allow access to 54,000 local governments and school districts
  • The CGR Govistics interface is now even easier to navigate

The new interface is cleaner and easier to understand.

...You can also browse county- and state-level data for free. This includes Govistics' customizable comparisons, Excel spreadsheet downloads, and more than a decade's worth of data for historic trends.

 

If you haven’t yet, check out the database at www.govistics.com. For more on CGR, visit www.cgr.org. CGR is a nonprofit, nonpartisan organization that works to improve government and school district efficiency and effectiveness.

, ,

Won’t You Take Me to…Turkey Town?

Posted by The Govistics Team in Blog - (1 Comments)

If you’re on the market for some seasonally-appropriate dinner table conversation fodder ahead of Thanksgiving, the Govistics team has you covered.

The U.S. Census Bureau recently pointed out to us in an email that there are fifteen places in the United States named after the main course on your Thanksgiving dinner table. Among them are 4 towns and 11 townships, the most populous of which is Turkey Creek, La., with 441 residents in 2010. This is followed by Turkey City, Texas (421 residents), Turkey Creek, Ariz. (294), and Turkey Town, N.C. (292).

Curious, we fired up the Govistics database to do some comparisons. During this process, we learned that there are three different Turkey Creek Townships in Kansas: one in Barber County, one in McPherson County, and one in Mitchell County. There are also two Turkey Creeks in Nebraska, in Franklin County and Harlan County. Interesting.

We learned that the most-populous Turkey Creek, La. “gobbles” up more of residents’ tax dollars than do the other, tinier “Turkeys.” This table shows you a comparison of total per-capita local government spending in the municipalities as of 2007, the most recent year for which comparable data were available via the U.S. Census of Governments for municipalities of this size. Turkey Creek Village spends about $2,400 per resident, while the little Turkey Creeks in Nebraska (population in Harlan County’s Turkey Creek hinges around 76 to 82 residents) spend just $24 and $53 per resident.

Per-capita revenue dollar figures tell a similar story.

The employment tables show you how many workers are employed by the municipality. The Turkey Creeks in Nebraska don’t have any employees. Turkey Town, N.C. only has one person on staff.

That person, an administrative staff member, earned a salary of just over $21,000 in 2007, according to our payroll pie chart.

When we compare payroll on a per-capita basis in all the Turkey-themed municipalities, we can see that Turkey Creek Village in Louisiana – located in Evangeline Parish – again outpaces its fellow poultry-saluting communities.

A few municipalities in Indiana, Missouri, Kansas, North Dakota, Tennessee, and North Carolina are named in honor of ducks. No chicken-themed towns or villages exist out there (yet, anyway). And there are a few communities with “bird” in their names.

But it seems, when it comes to poultry, America gives the turkey the most love.

America's favorite bird

,

Budget Chaos in Compton

Posted by The Govistics Team in Blog - (0 Comments)

The City of Compton, California, home to just over 96,000 residents, is part of the “South Side” of Los Angeles County. It is a diverse, young city – the majority of residents are Latino and the median age is 25. Although its name became synonymous with gang culture and crime in the popular hip hop music of the 1990s, new businesses and middle-class residents began to move into the infamous city in recent years due in part to relatively affordable housing and declining crime rates. But that “renaissance,” as it was called, has since been reversed. From the Los Angeles Times, October 31 2011:

While cities in California have been hit hard by the recession, Compton is in a small class of cities that have ended up in critical condition. [Proposed budget] cuts [are coming] at a bad time, with unemployment in the working-class community already at 20 percent.

Among the financial concerns plaguing the city:

  • Compton has accumulated $369,000 in late fees through 2011 because it could not afford to pay its policing contract with the Los Angeles County Sheriff’s Department on a timely basis; and
  • The city anticipates an impending deficit of $39 million, which is a figure that embodies about 80% of Compton’s general fund.

S&P has lowered ratings on several of Compton’s outstanding bonds to slightly above junk status. Approximately 15% of Compton’s public workforce has been laid off, with an estimated 90 more layoffs forthcoming. Many programs and events have been cut from the budget, including a popular annual gospel concert.

But these issues were more or less avoidable. Blamed in large part for the city’s mounting deficit is a recent contentious effort to re-launch a city police department:

Last June, when the City Council voted to move forward with a $19.5-million venture to revive the municipal police force, the city’s reserves were already used up and its general fund nearly $15 million in the red [...] The city had disbanded its department in 2000 in part as a cost-savings measure, bringing in the L.A. Sheriff’s Department to patrol the city. The Sheriff’s Department has won praise as violent crime in Compton has declined sharply in the last few years.

The Govistics database shows the steep drop in the number of Compton City employees due to that shift in 2000:

Not to mention the cost savings reflected on their payroll:

And the savings reflected on Compton’s balance sheets after they shifted from paying their own force to paying a fixed contract fee to Los Angeles County:

Despite those savings, the Govistics database shows that in FY 2008, spending outpaced revenues in Compton City $121 million to $110 million. In many spending categories, the city wasn’t tightening its belt. In revenue categories such as property taxes and – especially – state and federal aid, the city wasn’t collecting as much as it had previously:

Proponents of the move to reinstate Compton’s police department claimed that they didn’t know the city’s financial issues were growing increasingly severe:

“At that time, we were being told that we were stable, that we had to be cautious, but we were stable,” said Councilwoman Yvonne Arceneaux, who nevertheless voted against the project last year, citing concerns about costs.

Unlike their counterparts in Harrisburg, PA, city officials in Compton have vowed not to file for bankruptcy and instead are banking on a line of credit or short-term loan to get through the year. In Harrisburg, the case is in the hands of a bankruptcy judge as the state contests city leaders’ decision to file for Chapter 9. That city faces a debt five times its general-fund budget because of an overhaul and expansion of an incinerator.

Stories about cities and other municipalities making drastic moves to improve precarious financial situations have become common in the present economic climate, but such stories about cities of Compton’s and Harrisburg’s size and stature are a newer trend. The CGR Govistics team is keeping an ear to the ground and we’ll keep you in the loop.

Compton isn't "welcoming" many new residents and businesses these days as the city faces a budget deficit that's almost 80% of the size of its general fund.

 

, , , ,

Return to Normalcy Seems like a ‘Mirage’

Posted by The Govistics Team in Blog - (0 Comments)

Tax collection revenue in states across the country are down, especially in the larger states, including New York, New Jersey, California, Florida and Washington State.

An article published recently by the New York Times titled “Warning by States as Tax Revenues Fail to Rebound” put a spotlight on the issue with a sobering reckoning from the State of Washington’s chief economist, Arun Raha:

“We are in the fragile aftermath of the Great Recession, where a return to normalcy seems like a mirage in the desert — the closer we get to it, the further it moves away.”

Washington State will likely take in $2 billion less than originally projected this fiscal year, and Governor Christine Gregoire has reacted by calling a special legislative session to deliberate additional budget cuts, even after the state slashed $10 billion in spending since the dawn of the current recession.

CGR Govistics often touts its access to municipal and school district budget data, but the database also includes snapshots of the fifty states. Looking at Washington’s revenue trend line over the course of several years is illuminating. See how Washington’s tax collections did move along at a healthy pace up through 2007, when they leveled off:

But drill down further into the “Property Taxes” category (the overall “Taxes” category covers all tax revenue from licenses, sales taxes, income taxes, property and other taxes). Remember the effect that increased foreclosures and high joblessness can have on home ownership:

A precipitous decline in Washington State property tax collections happened not just in 2008, when the Great Recession made its big debut, but between 1999 and 2000, just before the early 2000s recession. It’s important to remember that state budget crunches are not a new issue; the seeds for the monumental problems states are facing today were planted many years ago.

Take a look at some of the other states profiled in the same New York Times article, and note the following:

  • California property tax revenue also took a huge slide prior to the year 2000, and continues to stay well below the inflation benchmark.
  • New York’s total revenue took an approximately $31 billion dip from 2007 to 2008;
  • New Jersey’s property tax collections were relatively erratic through the last decade, diving $1.5 million in 1999 before spiking above the inflation benchmark again, then dipping from about $4 million to $3 million just before the onset of the current recession:
  • And in Florida, where foreclosure “gloom and doom” has become a widely-discussed identifier, property tax collections from 1997 through 2008 take on the appearance of the only ski slope in the Sunshine State:

When big states face big crises – and react with big job/program cuts or big tax hikes -  it can mean big changes in your community. It could mean your local police force shrinks. Or that your child can no longer attend P.E. class at school. Your local library or community center could shut down. Or, you might notice that your trash collection services are being trimmed back.

The words of Washington State’s chief economist – “a return to normalcy seems like a mirage in the desert” – are haunting. Get ready to witness a tough road ahead for school districts, police departments, local libraries, neighborhoods, and everywhere else that is touched by state and local government services.

 

, , , , , , , , ,

Harrisburg’s bankruptcy filing: origins and implications

Posted by The Govistics Team in Blog - (1 Comments)

In recent weeks, the Govistics team at CGR noticed that “Harrisburg City, Dauphin, PA” was consistently the most popular search item on our database. We got a better idea as to why that might have been the case when we learned that City Council made a 4-3 decision on October 12 to file for bankruptcy protection. Chapter 9 bankruptcy filings are named for the section of federal law that covers insolvent municipalities.

Harrisburg’s financial problems have been blamed in large part on the city’s trash-burning incinerator, which now carries a debt burden of $310 million – a figure five times the size of the Pennsylvania capitol’s general-fund budget. The city started to accumulate its astronomical debt after the facility, constructed in 1972, violated environmental regulations in the 1980s and 1990s. Back in 2003, City Council voted to borrow $125 million for a retrofit, assuming that the power generated by a bigger and more efficient facility would pay off incurred debt; but according to a 2010 piece by the New York Times:

“[…] the incinerator burned through the money faster than the trash, leaving Harrisburg residents feeling like they were living through a sequel to the 1986 movie ‘The Money Pit.’ There were contractor troubles, delays, cost overruns and squabbles. The city borrowed tens of millions more, shoveling good money after bad into the job.”

The Harrisburg Resource Recovery Facility, as it is known, is managed by private operator Covanta Energy and is capable of processing 800 tons-per-day of solid waste, generating up to 21.8 megawatts of renewable energy. The energy is sold to wholesale electricity company PJM Interconnect. The facility also sells steam to the local steam district.

When the city issued the retrofitting bond in 2003 (the facility reopened in 2006), it agreed to guarantee much of the debt. Thus, Harrisburg taxpayers would be on the hook for the $310 million if bankruptcy was not on the table. Immediate measures taken by the city to address the problem were not long-term solutions, as noted by the Washington Post when the news of the filing broke:

“The city had suspended payment on the incinerator loans, but almost a quarter of its budget still goes to an assortment of debt payments, crowding out funding for basic city services.”

According to the Chapter 9 petition, the guaranteed debt amounts to approximately $242 million, with $65 million overdue. As noted in Bloomberg Businessweek, the city will need $310 million to make bond payments, restructure debt, repay the county, and repay a Bermuda-based insurer.

What can Govistics show us in regards to Harrisburg finances?

Well, for one example, take a look at this trend line depicting a huge slide in revenue as of 2008 (the most recent year for which  U.S. Census of Governments data are available – this is the way Govistics can compare local/state government and school district finances like apples-to-apples):

In fiscal year 2008, city leaders were looking at a -$180 million drop in income. After drilling down into the various revenue categories, it appeared that the biggest decline that year was under the “Insurance” umbrella:

More specifically, revenue from premiums, assessments, or contributions collected from employers and employees for social insurance programs operated by the public sector and any earnings on the assets. A $288 million hole existed in this category in 2008.

Looking at expenditures, it seems that city leaders attempted to rein in spending, especially in recent years:

But spending on items such as public safety, social services (see below), and public education all significantly outpaced the rate of inflation.

It goes without saying that, when faced with declining revenue and mounting costs associated with programs that were difficult to pare down, the city opted to avoid paying down its debts in favor of keeping other line items afloat.

Why is this significant? With a population of 49,500, Harrisburg would be the largest city since Vallejo, California in 2008 to file for bankruptcy protection. As examined by the Wall Street Journal, there have been 48 bankruptcies from cities, towns, and counties since 1980.

“‘To the extent there was a stigma associated with municipal bankruptcy, that is rapidly declining,’ said David Skeel, a law professor at the University of Pennsylvania.”

But even though proponents of the filing believe bankruptcy is the only option, it does carry the threat of turning Pennsylvania’s state capitol into a “ghost town.” If the filing goes through, the city would have to sell off all of its revenue-producing assets and raise taxes on cash-strapped residents. The poverty rate in Harrisburg currently stands at 29 percent.

Observers are expecting that the Commonwealth of Pennsylvania will legally prevent the city from filing for Chapter 9 and step in with a revamped state-backed fiscal recovery effort. The city has to prove to a judge that it is fiscally insolvent, which some critics say will be a difficult process.

Update (10/18/11, 5:00 p.m.):  Observers were right. The Pennsylvania State Senate on Tuesday gave the go-ahead to a state takeover of Harrisburg’s finances. Harrisburg Mayor Linda Thompson and many state officials are against the bankruptcy filing, calling it “illegal” in the eyes of state law. Governor Tom Corbett is now empowered to declare a state of fiscal emergency in Harrisburg and petition for the appointment of a receiver who will be in charge of formulating and implementing a long-term recovery plan. Read more from Reuters.

A nighttime view of the Pennsylvania State Capitol building in Harrisburg

, ,

Top-Notch Credit Scores/Big Budget Hole in Wausau, Wis.

Posted by The Govistics Team in Blog - (0 Comments)

This week, the small, relatively remote city of Wausau, Wisconsin (population: 38,000+; county seat of Marathon County; a little more than a three-hour drive from Milwaukee) made headlines for having the highest average credit score in the USA. The story detailed results of a nation-wide analysis performed by credit bureau Experian.

From USA Today, 11 October 2011:

Several other Midwestern cities are among the metro areas with the best credit scores, Experian said. Compared with the rest of the nation, they tend to have lower unemployment rates and less debt.

“Areas of the country that didn’t go crazy during the boom are probably still reaping the benefits in terms of their credit scores,” says Gerri Detweiler, personal finance expert for Credit.com.

Worth noting: this was the first year that Wausau was featured in the analysis, because its population reached a certain threshold in the most recent Census count. That’s a sign the city may have become a more desirable place to live and do business. Between 1990 and 2010, the population inched above 38,000 residents:

Wausau City, Wisconsin – Population Trend 1990-2010

Could sound public budgeting and growth planning make way for a more affordable cost of living, and thus, better credit scores for residents? The state income tax rate in Wisconsin is comparable to those in CNN Money’s “10 Best Places to Live in 2011.”  According to Kiplinger, Wausau residents’ income grew by about 6.2 percent between 2005 and 2009, and the cost of living index is at 96 (based on 100 as the national average).

Using Govistics to take  a closer look at how the city has fared in terms of spending and revenue during recent years, one can see that Wausau’s spending did outpace inflation from 1997-2008:

But so did revenues:

And if you drill down a bit more into revenues, you can see that property tax revenue has been on the up-and-up, perhaps due to that population increase:

The 2000 adaption of a Wausau Central Business District Master Plan reflected efforts to respond to growth, as did school construction projects during the first decade of the new millenium. Reductions in school spending  (on teacher salaries) and other conservative budgeting practices may have contributed to a lower cost of living. Significantly, it’s clear that the City of Wausau has been cutting its payrolls in recent years:

However, Wausau is facing a $1.1 million budget hole in 2012, largely due to cuts in state funding. In the 2008 budget, 30 percent of Wausau’s revenue came under Govistics’ “Miscellaneous” category. Nearly half of that represented state funding (the rest of that category is covered by things like donations, fines and forfeits, interest and dividends, transfer revenue, etc.). And state funding, totaling about $8.2 million in 2008, has been an area of concern for the city as of late:

In addition, personnel costs are rising in Wausau due to changes to collective bargaining agreements. Also, because of a statewide property tax cap, local government leaders can’t increase local property tax rates by more than 1.5 percent.

So it’s likely that Wausau’s spending and payroll trendlines will have to drop steeply to plug this budget hole. If local government leaders maintain their personal finances as conservatively as Experian’s report indicates, maybe we can expect to see those practices applied to the city budget to help alleviate these concerns.

It will be interesting to see how Wausau’s Govistics profile will change when the next batch of U.S. Census of Governments data becomes available in 2012 (the source for most Govistics data).

, , , , ,