Budget Time Part 2

The major challenge that the City of Altoona is facing during its budgeting process is a 17% increase in health insurance premiums next year. This cost increase alone is approximately half a million dollars. While the City has attempted to shop around for comparable coverage (we need to provide comparable coverage due to union contracts), we've been "locked in" to our current vendor because other companies don't offer similar coverage.

The outstanding rise in health insurance is an issue that is touching on many aspects of the economy. The fact that cities may need to eliminate public safety positions due to health insurance costs literally exploding is a shame. I'm not writing this as a political commentary but more as just an observation that it is a major issue.

Altoona Council had no problem coming up with a balanced budget this year because we have had several good years and there is a small amount of money in reserve -- but it is with reluctance we needed to dip into that a bit to avoid cutting services (there has already been fairly significant staff reduction over the past five years). We have five new police officers thanks to a state grant, and we're attempting to keep on top of the drug and crime problems.

Heading into 2009, City Council (and our community in general) would be wise to consider additional ways to fund our essential City services -- police, fire, public works, codes, etc. ILoveAltoona.com from its inception has been a place for ideas. So I'd like to invite you to begin a many months-long dialogue with me, and with others here, on how we can not just be a "run of the mill" city, but one whose citizens actively involve themselves in finding answers.

- Matt