The "wait and see" budget
May 9, 2011 by Brian
Bartlett
Tonight City Council unveils
the “wait and see” budget. Around $1 Million dollars in capital
expenditures will be delayed until next January and voted upon by
the new Council elected in November. The intent is if either the
funds are not there, or the economy has not turned for the better,
these expenditures hit the chopping block.
Some government entities, Oakland
County for example, claim that a 2 year planning horizon is the
secret to smoothly navigating this economy. In Novi, the City
chooses to sail in the opposite direction, choosing a 6 month time
frame.
One would expect this to be
accompanied with a pessimistic view of the economic future. Not so.
In the long term this budget forecasts stagnating home values in
2012 and the start of increasing real estate values. It just doesn’t
bet on its predictions.
This Budget now becomes a topic of
debate in the upcoming elections. This new Council and new Mayor may
be faced with some unpopular budget choices immediately. |
The Novi Information Network