Friday, January 30, 2009

Where We Go...

Now more than ever our local system of government should be overhauled. I have maintained for years that consolidating city and county government is a good idea. There has never been a better time to act.



Government revenue streams are dropping due to the decrease in collected sales taxes. Future threats to the revenue stream include further declining property values, sinking pension fund values and higher unemployment. These issues and more will add strain to an already overtaxed population.


Faced with this immediate economic calamity our elected officials should take the opportunity to find more efficiency in our government. But the quality level of our services is not where they should look. They should look to the design of the business models they run.



Both of the past two Mayors have cut services to citizens in order to save tax dollars and or shift them elsewhere for public projects. The result has been a steady decline in the availability of law enforcement, an erosion of quality in our city parks, long lines and ridiculous waits for permits, bad street conditions, trash pick up that resembles a pie throwing contest, a library system that yearns for any attention at all, shorter hours at recreation centers like city pools, and oh the list could go on.


The driving maxim in business is that you must constantly look for ways to become more efficient and competitive. The failure to do so will likely result in your destruction. As we are witnessing, everyday market forces are brutal and unforgiving. Unfortunately, many businesses suffer from the same error our government has been making for years. They look to cut the quality of their product or their services as a way to save money. This downward spiral is a death spin for a business. If it doesn't recover by correcting its mistakes quickly, its over.





Government on the other hand has little if any competition for its product. It can cut services, lay workers off, and in the process of lessening the quality of its product even raise its revenues. Why? Because government has no competition, total control of its market, and the ability to increase its own revenues. Looking at government in this way makes one quickly aware of why its in so much trouble. Lets look at local city and county government as an example.


Some will no doubt argue that the purposes of county and city governments are different. Most likely those doing the arguing are elected officials or those with vested economic interest in a particular arm of government. To look at it another way, those who wish to protect their political turf and or a contract they might have with an arm of local government like the status quo. These arguments are efforts only to preserve prestige, power or cash flow. There is no real incentive to look logically at consolidation. Yes, businesses consolidate everyday. Fueled by too much competition and the desire to survive in tough markets and economic times, business not only has too, but also has the ability to take the logical step.


The business of government is providing basic services and security for taxpayers. Locally, the defined market area is the land mass encompassed by Douglas County. Geographically speaking, City and County governments overlap each other on an 80 percent basis. They don't compete with each other specifically for anything except our important income IE., taxpayer dollars, which is their blood flow. They do not have to worry about going out of business. If necessary they can raise revenues simply by increasing the price of their service without threat of competitors taking away the customers. What a sweet deal that is. Virtually guaranteed revenue and little if any competition. As a business owner, I would take that option in a nano second. Is it any wonder government is inefficient? Where is the incentive?



Some might say the incentive comes at the ballot box. High spenders are voted out of office. Really? Why then do taxes NEVER go down?



No, the system is broke. The models of government organization used today came from two centuries ago. Wow, do you still drive a car designed in 1925? The modern demands placed upon government far outweigh its ability to cope.



Next, how, when, and where.

Thursday, January 29, 2009

Time For New Direction

The last 8 years in city government have for the most part been what they were cracked up to be. A period of "civility" at city hall. Mayor Fahey with his mature and calm manner has managed to deal with his political foes in a way that at least publicly seems to have been respectful. And for that, all of the members of the current city council and the mayors office need to be congratulated.

In addition he leaves behind a new ball park, no increase in taxes for 8 years, neighborhood policing, the annexation of Elkhorn, a 25 year contract for the College World Series, positive
steps forward in race relations, major new undertakings in development at Ak-Sar-Ben, 30Th and Dodge, 168Th and 180Th and Dodge, the completion of the Dodge Street Overpass and the
building of a wonderful tourist attraction crossing the Missouri River. I could probably go on but you get the idea. He has been a great Mayor for Omaha.

Now by his own choice it is time to move on. Fahey has decided not to endure but to retire to the sanctuary of private life. Good luck to you Mayor. May you live long and prosper.

There are many tough issues on the immediate horizon for Omaha. None of which can be ignored or put off.

The recent big declines in the financial markets have placed Omaha's Bond rating in serious jeopardy and exacerbated the pension fund problems. New contracts for the Police and Fire
Departments must be negotiated with major changes to the current way of doing business. Our crime and gang problems are worse than they have ever been. Citizens are being attacked, even murdered in public places. Gun violence is out of control. 28 gangs seem to run wild dictating their own terms of existence. Homes all over the city are being burglarized with little being accomplished to stop it.

Further, there is a billion dollar plus city sewer project which has been mandated by the Federal government along with the lead clean up project already underway. Tax receipt projections grow ever worse forcing the city to take another hard look at cutting already seriously depleted basic services to citizens, or face the possibility of raising revenues in a declining economy along with cutting services. The worst of both worlds.

So, the next Mayor and Council are not going to have it easy. It will be a time that will require serious discussions, tough decisions, flexible and dynamic personalities, policies and direction for Omaha's government. It is time for a new direction. The current status of form and function will no longer work.

What direction should that be? More in the next posting.....

Tuesday, January 13, 2009

The Cameleon Is Back

Acting as a kinder and gentler sole, Hal Daub is once
again running for political office. In the last few years
he has tested his name as a candidate for Governor, run
and dropped out of a Senate race, worked for President Bush
on Social Security issues, chaired McCain's campaign in
Nebraska, and now he is trying his game again for Mayor.
And, don't forget he made the lunch circuit floating the
idea of sinking Ashland Nebraska.

Is there anybody in the state more impressed with himself
than Hal Daub?

He was booted out of office in the 2001 election by Mike
Fahey. Fahey won by presenting a calmer and friendlier
personality with a successful record in business.

Daub will likely present his previous administration as
better than the last 8 years. He will want vindication and
bandages for an ego that was wounded by his defeat. He
will say he has the ideas to get rid of crime, fix the streets,
solve the budget problems, and continue to grow the city.
It will sound great. He has the political experience to run
campaign circles around the neophytes he is up against.

But voters beware. This is the same contentious,
argumentative, belligerent, demanding, lying, and
deceiving man that was voted out of office in 2001.
The color of his hide may change to camouflage
himself in the political environment of 2009,
but the bite of this snake is just a poisonous
as ever.

Can anyone really want a return to this
caustic style of leadership?