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With all the attention on the budget battles in Sacramento and Washington, the financial crisis facing cities has slipped mostly under the radar. But cities provide most of the front line services used by Californians, and throughout California those city services are on the chopping block. 

• Elimination of fire inspectors, a fire truck, and rotating closures of fire stations.  

• Cuts to youth programs, teen counselors, and health workers.  

• Complete elimination of police bicycle patrols and city arts programs. 

Those are just a few of the cuts being considered by Berkeley officials as they work to close a deficit that may top 13 percent of the city’s general fund—a $15 million cut out of a $110 million budget—next year alone.  

Berkeley and other cities are faced with stark choices—whether to raise new revenue or allow these core programs to be cut. 

In Berkeley, Mayor Tom Bates proactively convened a group of residents to examine how the city might meet this budget crisis. This group, the Mayor’s Task Force on Revenue, includes members of the League of Women Voters, members of the Chamber of Commerce, retirees, educators, business owners, UC students, and others. 

Task force members heard from experts on city finances, economic development, and public opinion. They debated tax options, seriously discussed ideas for business development, and considered all the potential impacts of additional taxes on homeowners and small businesses. (Agendas and meeting notes are available at the mayor’s website, www.ci.berkeley.ca.us/mayor.) 

The truth is that this budget crisis is not Berkeley’s fault. A UC Berkeley public policy professor recently wrote in a national magazine that Berkeley is “a model of how government ought to work.” The city used a hiring freeze and other measures to cushion the $6 million it has already cut from the budget. In fact, Berkeley’s astute financial management has earned it one of the highest bond ratings in California—saving the city millions of dollars in interest payments. 

The real problem is that the state’s budget woes are trickling down to cities, and Berkeley is no exception. As much as $6 million of the deficit was created when the state-run employee retirement system (CalPERS) required a far larger city contribution than they had previously projected. Another $6 million will be carved out of the budget if the governor-elect succeeds in eliminating the vehicle license fee. 

We can all hope that fiscal sanity returns to Sacramento, but we must take responsibility for making responsible choices here at home. In the end, it is Berkeley’s fire protection on the line.  

Faced with this choice, the task force did what the leaders in Sacramento and Washington have been unable to do. The members came to unanimous agreement that Berkeley cannot just cut its way out of this deficit.  

The task force recommended a balanced approach—careful cuts balanced with a tax increase. If placed on the ballot and passed by voters, this tax increase would raise $10 million per year by increasing the amount paid by homeowners an average of $250. The task force also recommended that this tax measure be accompanied by an exemption for low-income homeowners, as well as serious accountability measures such as a citizen’s oversight committee and a five-year sunset provision. 

Cuts will still be necessary, but this revenue increase allows the city to protect its front line services until the economy is strong and the state is out of its financial mess. 

Even the best-managed cities face difficult and painful choices. The best we can do right now is to take care of our responsibilities here at home. If we’re lucky, that fiscal sanity might rub off on those in the state capitol. 

Dion Aroner was chair of the Mayor’s Advisory Task Force on City Revenue. She previously served six years in the State Assembly and is currently a partner in the Berkeley-based government affairs consulting group AJE Partners.