My first action during this time period would have been to look at the underlying economic assumptions and ask how I think they have changed. Based upon what was occurring, it was obvious that these assumptions were incorrect. A re-forecast might not have not have shown the same severity, but it would have pointed out that a budget hole was going to occur.

I don’t think anyone would have predicted what would happen and its swiftness. The mayor and his budget director share the blame for not re-forecasting and sharing their concerns (if the did re-forecast, then they have to be faulted on communications). The council should have asked the question.

The additional $8 million is probably more than they could have predicted given how swiftly the financial markets melted down and the resulting impact on main street. Still it was obvious that problems were on the horizon based upon what others were saying and doing.

Both sides get an “F” in their failure to anticipate a bigger budget deficit and for communicating with each other and for asking the tough questions.

What have they learned from this situation? Or have they learned? Don’t start the blame game: fix it and don’t let it happen again!