ARTICLE
The First Thing Every Candidate Should Know No candidate should run for public office without a solid understanding of the financial circumstance of the city or school board or special district which they want to govern. One of the tragedies of contemporary electoral politics is that there is little analysis of either the financial management skills of a candidate or of his or her understanding the financial condition of the entity that they seek to govern. Candidates’ proposals for local issues such as housing, infrastructure, public safety, or social services are too seldom weighed against the realities of tax base, existing obligations, and the realities of the economic environment. The following is a check list with which every candidate should be conversant before they are elected to public office. Current Income Sources. What are the principal sources of the organization’s revenues? What are the trends and forces affecting those sources of income? What could be done to grow those revenues without increasing tax rates? Current Expenditures. How are revenues currently being spent? What are the resources and services being provided with those expenditures and how might calibrated increases or decreases in each area change the services and resources being delivered? Fund Balances and Future Obligations. What are the reserves of the organization and what are its known future obligations? Future obligations should include a realistic assessment of pension and health retirement benefits as well as debt repayment, other contractual obligations. Infrastructure needs. What is included in the Capital Improvement Program of the jurisdiction? Does this seem are realistic assessment of the repair and maintenance needs and capital equipment and facilities requirements today and for the future? Risks and Opportunities. What are the most significant external threats – from economic cycles to climate change, from externally imposed legislative requirements to voter-mandated measures and conditions? What are the most obvious opportunities to improve the quality of life and prosperity of the community through the efforts of the entity? Until the candidate as a grasp on these resources and forces no proposal, position on an issue, or commitment to change should be taken seriously. When these foundational conditions and questions are not taken seriously by the electorate candidates are not only unsuccessful in fulfilling promises but the community becomes divided over unrealistic expectations and unfulfillable promises. For our communities to thrive the proposals, positions, and commitments proposed by candidates must be tied to the financial realities of our governance.