Berg, a softspoken resident of the tiny town of Nowthen, has held public office for 36 years. Right now, he and other local government officials around the state are facing unheard of financial challenges. Huge cuts in state aid are coming at the same time traditional tax revenues are shrinking as unemployment soars, property values plummet and the Wall Street meltdown rattles business owners and consumers across the state.
Berg's response to the situation is heartening and nicely illustrates the can-do spirit filling many county courthouses and city halls this year. Berg feels "energized" by the financial challenges. And rather than complain, Berg believes the severe downturn is an unprecedented opportunity for Anoka County and other local governments to evaluate their operations and find new ways to improve services while delivering them more efficiently. That's a welcome message as local governments across the state grapple with higher caseloads and other fallout from the ailing economy.
"I am 63 years old and in office since 1973. And there's only been a few other opportunities where everything was so in line to make changes,'' Berg said. "In local government, we get so territorial or we say 'We can't do this because we haven't done it before' and we resist change. But when you have a crisis all of a sudden, that trumps all of that. You have a chance to do things, and while you may make some mistakes, there's real opportunity now. The public gets it.''
Anoka County's 2009 budget will be $4.1 million less than anticipated. Berg, his County Board colleagues, as well as administrators such as Terry Johnson and Cevin Petersen, have been particularly proactive in responding to the downturn. They quickly swung into action last fall. An Oct. 22 letter to county managers and department heads prepared staff for the financial difficulties ahead and requested holding off on capital expenditures and filling vacancies. Berg also set up an oversight committee to give extra scrutiny to any hiring or expenses deemed essential.
Among the cost-saving measures implemented: cutbacks in conference travel and related expenses (a move that saved $58,000 in 2008) and delaying purchases of big equipment like dump trucks or using new money-saving finance arrangements to acquire them. Thirty-seven vacant positions have not been filled. Already, meetings have been held for employees about the 2010 budget and the continued need for frugality. Although some critics contend that Berg is overreacting by holding too hard a line on spending, he smartly believes it's more dangerous to underreact.
Berg, Johnson and Petersen strongly believe that there are abundant opportunities for long-term cost savings once the crisis subsides. The three quickly turn from stoic administrators to passionate advocates in talking about state laws they believe handcuff counties in doing this. Vast sums could be saved, they argue, if the state eased "maintenance of effort" (MOE) spending requirements and other mandates. Essentially, MOE dictates that spending on certain programs can't dip below amounts spent in previous years. Programs affected range from many mental health programs to library funding to money spent on weed inspection programs unneeded in some areas. Anoka County officials make a fair argument that it's time to reexamine mandates, that outcomes should govern spending, not dollar amounts from previous years.
Counties have long fought MOE and other mandates to no avail. This year, the overwhelming need for belt-tightening lends urgency to their arguments. While a wholesale elimination of mandates isn't realistic, it's time to revisit the issue and give counties additional flexibility to respond to this crisis and the challenges that yet lie ahead.
