Memorial Day, 2009

City Hall, Foster City, California

The state government faces cutbacks ($21 billion) that bode for tempestuous times in the not-so-Golden State. In contrast, our town of Foster City has managed its finances well. For the fiscal year ended 6/30/08 unrestricted cash and investments were $85 million, well exceeding total liabilities of $17 million. From an income statement/flow of funds perspective, revenues for FY08 exceeded expenses by $8 million (for more information see the Foster City financial report.)

The governor warns that he may force municipalities like ours to “lend” the State monies to help balance its budget. Such is the logical consequence of a philosophy that allows the public sector to provide services in more and more areas of our lives. Because there is one dominant provider in education, highway building, police, fire, parks and recreation, to name but a few areas, we are at its mercy. We either fund the beast and accept its inefficiencies or live without the service entirely. If the people won’t advance funds when asked nicely, the next request won’t be so nice.

What remains of the private sector has been cowed into submission by the threat of ruin, and the fabled fourth estate supinely accepts the argument that the problems of government can be solved by more government. It’s ironic that the only effective counterweight to government may be other government entities.

And so it goes on the day when we remember those who have died that we may live in freedom. Let's remember the greater challenges that they faced and be hopeful. © 2009 Stephen Yuen

On a warm Memorial Day the flags waived gaily next to city hall.