Commentary
There are various motivations for individuals to run for public office. In my case, my journey was influenced by my background as a certified public accountant. Through serving on nonprofit boards and acting as a treasurer, I was eventually urged to run for county treasurer, a role I initially resisted.
After conducting thorough research and comparing the incumbent’s actions to my own beliefs as a licensed certified financial planner, I decided to enter the race. My campaign focused on educating voters about the risks of the incumbent’s strategy of borrowing to invest.
Despite gaining attention from The Wall Street Journal, I was unsuccessful in unseating the incumbent in the June 1994 election. However, following the County of Orange’s bankruptcy filing in December 1994, I was appointed to replace the incumbent and served as the Orange County treasurer-tax collector for 12 years.
Recognizing the fiscal challenges facing the county due to decisions like significant increases in employee pension benefits, I decided to run for the board in 2006 to bring my financial expertise to the public office.
Due to the bankruptcy, Orange County voters imposed a two-term limit on county supervisors, giving me a limited time frame to achieve several fiscal objectives. At the end of my tenure, investigative reporter Heidi Cuda interviewed me to review my accomplishments.
“If you can’t explain something to the public sector in 30 seconds, forget about it.’
“Number Fourteen: ‘Labor negotiations could be done in public.’
“We adopted (this) and we got it,’ he says. ‘It’s nice for the public to see the crazy offers that they put on the first round. It changes the whole dynamic.’ [It was referred to as COIN (Civic Openness in Negotiations) and used around the nation, but eliminated by California’s public employees unions in the state legislature.]
“Number Fifteen: ‘Gradually lower the rate of return and invest accordingly.’
“‘This idea came from a Wall Street Journal article in 2006,’ he says. ‘We’ve gotten the assumed rate [of return] down just by influencing members of the [retirement] board. This was a win.'”
County Progress
Many elected officials love to attend ribbon cuttings and push their political party’s programs. For me, it was pursuing sound fiscal principles that would endure over time. In 2010, Orange County was in 46th place out of California’s 58 counties based on financial status per capita. As of June 30, 2021, it was in 24th place. Mariposa and Tuolumne counties still have to release their June 30, 2022, annual comprehensive financial reports for a more current ranking. Orange County’s moving from the bottom to the middle of the pack is a testimony to the above stewardship efforts.
With many cities looking to increase their sales tax rates in order to garner more revenues, maybe a review of the applicable items on the above checklist should be pursued first. After a thorough analysis and implementation of appropriate fiscal policies, like that pursued by the city of Newport Beach (see “Government Agencies Should Develop a Financial Plan—Here’s How,” July 20, 2024), the fiscal direction of a city may improve. Getting a fiscal house in order may just eliminate the need to tax a city’s residents more.
Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.
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