Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: [v. 98, no. 2534: Articles]: October 7, 1916

Text version:

REAL ESTATE AKD NEW YORK, OCTOBER 7, 1916 WHAT IS THE MATTER WITH THE BUDGET PLAN AND WHAT IS BEING DONE ABOUT IT D EFORE taking up what is customar- •'-' ily called "the budget," it might be well to say a word about budgets in gen¬ eral. Any statement, document, or set of documents which deserves the name "budget" must have for its purpose the controlling of the action of the govern¬ ment. A budget is essentially an in¬ strument of control. To be effective it must be an instrument of popular con¬ trol; it must be a means whereby the government may be made responsive to public opinion—responsible to a voting majority. As citizens you may ask your¬ selves whether what we have been call¬ ing the city's "budget" serves this end. Historically, budgets have been the cliief means of making the executive give an account of himself. The method adopted for enforcing accountaliility has been to insist on the constitutional prin¬ ciple tliat "no money shall be raised for the support of the government except by consent of the governed"—this consent to be expressed either directly through the voters or indirectly through duly elected and accredited representatives. In the practical working out of this prin¬ ciple the people have demanded that the executive prepare and submit, along with his account of past doings, a definite plan for a future period to be financed before the funds or supplies will be forthcoming. Charter Requirements. The charter of New York requires the Board of Estimate (the only executive which the city has—an executive commit¬ tee elected by the people) to prepare and submit to the Board of Aldermen (the money raising and appropriating body) each year a "budget"; it requires the Board of Estimate to prepare and sub¬ mit for enactment or rejection a draft of an appropriation bill or ordinance, the "terms and conditions" of which cannot be changed and the items of which when submitted, though they may be reduced, cannot be increased. This puts upon the Board of Estimate, as the city's exec¬ utive committee, the power, if not the duty, of preparing each year a definite plan which may be m.ade the basis for considering whether money will be granted for a future period, and of sub¬ mitting this plan as an explanation, when the request fch" funds is made. Have they done it? They submit a draft of an appropriation bill or ordinance to be passed by the Board of Aldermen; but have they prepared and submitted a bud¬ get? Comptroller Prendergast has gone on record as saying that they have not. Comptroller Prendergast has stated pub¬ licly that though there have been many changes in procedure through the last ten years, strictly speaking New York still has no budget. It is now about time that the citizens as well as officers squarely face this fact. If this criticism of what we have been calling a budget may seem to be a dis¬ tinction without a real difference let us apply a few tests to the bill or proposed ordinance which is prepared each year and sent to the Board of Aldermen. First the test of intelligibility: since the pur¬ pose of a budget is to provide the means for the exercise of popular control, it goes without saying that its form should be such that it can be easily understood. It should tell a story; it should tell this story in such a simple way that anyone can know what it is all about. Does By DR. FREDERICK A. CLEVELAND. Director, Bureau Municipal Research DR. FREDERICK A. CLEVELAND. our so-called budget tell a story that is easily understood? Are we not entitled to know: What executive officers and those un¬ der them are doing for the community and what they think should be done? What is the man force used and what executive officers think to be the ir.ain force needed for carrying on the work proposed? What is the present and estimated cost of_ hiring men and buying the material things required to make their work ef¬ fective? How this cost has been met in the past and how executive officers propose to meet it in the future? What is the present and estimated financial condition of the municipality? The Present Practice. We look over the so-called budget of 1916 or of any year immediately preced- in.g; we look it over, ask yourselves and answer these questions: Q. Does this document tell what services are being rendered to the public and what executive officers (the Board of Estimate) think should be done? A. No. Q. Does it give a list of positions and salaries of officers and civil ser¬ vants used and needed to do work? A. Yes, in a way—but in a very awk¬ ward and uninforming way. Q. Does it give a report on con¬ tracts entered into and purchases made, with a view of determining the quan¬ tities, qualities and prices of things bought or to be bought? A. No—there is a "segregation" of items for things of this kind Init the in¬ formation is not brought together in such form that anyone could tell whether the prices paid were reason¬ able and just, and the city trading has been done economically. Q. Does it give the cost of render¬ ing each kind of public service? A. No. Q. Does it publish a statement show¬ ing present or estimated future finan¬ cial conditions? A. No. A. Does it set forth the present and proposed "ways and means" of raising funds needed? A. No. Q. Does anyone prepare and submit explanation or address to the Board of Aldermen pointing out the facts to which special attention is to be given? A. No; simply the proposed appro¬ priation bill or ordinance is prepared and put in the hands of the Board of Aldermen. From the beginning to tlfe end the Board of Estimate proceeded as if they were the ones to determine what appropriations should be made. They hold public hearings and in var¬ ious ways attempt to sift the estimates, but throughout there seems to be the implied assumption that what the exec¬ utive officers determine they should have is a matter not to be seriously inquired into by the Board of Alder¬ men. Q. Are budget summaries prepared with such supporting and supplement¬ ary information as is needed to give the people a basis for judging whether the business of the city has been car¬ ried on economically and efficiently? A. No. There is a chance given for public hearings, but these always have been and always will be a farce. Proposals for Change in Procedure. From this it is not to assumed that the Board of Estimate are satisfied with the present practicce. At meetings both of the Budget Committee and of the Board, members have frankly admitted and recognized these defects. At meet¬ ings both of the Budget Committee and of the Board, they have invited discus¬ sion of constructive proposals in order that they rnight have brought before them definite recommendations for change, and the Board has referred the matter to the Budget Committee; the Bud,get Committee in turn has referred it to a sub-committee to report on prac¬ tical steps to be taken this year. The proposition which is now before the Board of Estimate is this: that they should prepare and put into the hands of the Board of Aldermen a budget, or account of past actions and a plan for the future, in support of the requests for appropriation in support of the bill, which would be sent in at the same time; and that this budget would have the fol¬ lowing features: 1—A "work" program," present and proposed—which will tell what is being done and what officers think should be undertaken. 2—A "list of positions and salaries" of officers and civil servants—the per¬ sonnel used and to be used. 3—A "report on contracts and pur¬ chases"—with details showing quanti¬ ties, qualities and prices paid. 4—A statement showing "cost" in terms of public services rendered or re¬ sults achieved. S—A report on "ways and m.eans" of raising funds—whether by raising rev¬ enue or floating new loans. 6—A "balance sheet" or statement of financial condition with surplus or deficit to be brought into the reckon¬ ing of funds needed. 7—.\ "budget address to the Board of Aldermen" which would be prepared by the mayor as chairman of the Board