Over the past three years, leaders in the nation’s local governments have labored long and hard to hammer out budgets that balance revenues with expenditures. The combined effects of a deep recession and painfully slow recovery made this one of the most difficult years in memory for crafting a balanced operating budget. But most local managers succeeded. With few exceptions, the more than 39,000 municipal and county governments found the political wherewithal to hammer out a budget agreement that ensured the continuation of their operations.

While several states and the federal government continue their ad nauseam political jostling over appropriation bills, some operating on continuing resolutions or other stopgap measures, most of the nation’s city and county managers pressed forward through emotionally charged negotiations to piece together a balanced budget, at least one that was balanced at the time of adoption. Because of a tenuous revenue picture, some made the painful choice of achieving a balance solely through reductions in expenditures, including layoffs and salary reductions. The short term future does not bode well for these communities as they struggle to set aright their ravaged economies.

Other managers had more options in navigating deliberations in their community to budgeting’s equivalent of a safe harbor. Some balanced their budgets through a combination of spending reductions and tax and/or fee increases. Some dipped into budget reserves, while making modest spending adjustments. A few were even able to hold tax and spending levels constant. Whatever the means, they persevered until they found a resolution to a messy financial problem.

These unheralded heroes and heroines of democracy make our system of government work. For some of these leaders, the emotional strain and stress have caused them to call it quits. Our communities are the better for their wise leadership and the less for their premature departure from public service. Not only is managing in the public sector harder than managing a business, it demands more emotionally. The agonizing deliberations over budget choices take a toll on both mind and heart.

These past few years have seen a steady stream of media reports on the painful decisions that local governments have had to make to find that elusive balance of revenues with expenditures. In the process, leaders in local government have had to reassess what is worth doing, what can be delayed, what should be scaled back, and what should no longer be done. In that process, citizens have had an opportunity to engage in those deliberations. Some have done so passionately; others have watched with curious interest as competing interests have jostled for support for their cause. But at the end of the day, after much reworking, a budget was adopted. There were few victories and even fewer celebrations. But the good of the order was preserved, commerce continued unabated, and we moved forward with our lives. And therein may lay the real value of the budget process.

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