The full extent of Phoenix's financial mess (Thanks again Phil!)

I cannot help but think this pretty much fatally wounds Phil Gordon's political career. The extent of the financial mismanagement in Phoenix is pretty staggering. Here are more details from the Arizona Republic. The finances are really bad when they are proposing police and fire cuts (3%). This is truly unacceptable... My hope is that many of the new city council members will take a hard look at the financial strategies used in the city.

This is my piece of advice to new city council members and staff. Educate yourself about how the budget works. Read the document, consult with the League of Cities, seek outside advice and don't take the city staff's word as gospel (although they are usually right). You need to inquire and be tough about why and how the city got into this predicament. Was it a bad revenue forecast? Were the projections too rosy? Will the city continue to use the same forecasting metrics and methodology? Did city elected officials ignore the advice of the staff and the City Manager or follow it? Find out what the fund balance is currently (if any). What was the fund balance for the last five years? Where was the fund balance spent if it is gone? What is the unrestricted fund balance (now and the last five years)? What is the city's plan for dealing with a cut in State Shared Revenue (this almost always happens when the state is running a deficit) Order the Municipal Budget and Finance Manual (and read it).

Email me if you have questions... I will happily answer them off the record.