PS Mayor Calls on City to Put Brakes On Spending

Mayor deHarte Issues Bold Call to Action on Palm Springs’ Fiscal Future: Put Brakes on Spending

PALM SPRINGS — In response to growing public concern over the city’s fiscal challenges, Palm Springs Mayor Ron deHarte is calling on the city to put on the brakes.

For context, Palm Springs is facing a projected $10 million budget deficit over the next two years.

The mayor is one member of the City Council. He has one vote just like all others on the City Council. The mayor’s position rotates annually among all members of the  City Counci.

In a self-issued news release. deHarte released a Residents Guide to the City Budget. This document, he wrote, serves as a transparent, plain-language overview that explains how the city budget works, what’s causing the shortfall, and outlines the urgent steps the City Council must take to secure long-term fiscal stability.

The guide, which deHarte developed, “lays out the facts” in accessible terms: Palm Springs is facing a structural deficit where expenses are outpacing revenues. With an anticipated economic downturn, stagnating revenue, and escalating employee costs, the Mayor asserts that the Council must “unite and demonstrate decisive leadership.” This requires a two-pronged approach: reining in spending while protecting essential services and strategically investing in economic growth — the only sustainable path to increasing revenue without burdening taxpayers.

Since taking office, deHarte writes in the release, he has called for putting on the breaks (sic) and focusing on priorities.”

He writes the release referring to himself in the third person. His “proactive stance” as he calls it, is reinforced as Bloomberg Businessweek, in a June 5 article, cited a forecast from Tourism Economics indicating a widespread decline in foreign visitor spending across major American cities. While 18 of the top 20 cities are projected to see declines, Riverside (a gateway to Palm Springs and Joshua Tree National Park) is expected to drop 7%. With travelers choosing alternate destinations, the American economy will lose out on $12.5 billion this year, according to the World Travel & Tourism Council.

Palm Springs’ current budget optimistically assumes steady tourism. Mayor deHarte acknowledges this disparity, stating, “International travel is down, and we face a broadly uncertain economy. Our current budget’s optimism on tourism, therefore, warrants careful consideration.”

“This is not a crisis — yet,” deHarte wrote in his release. “But we cannot plug long-term holes with short-term fixes. It’s time for real leadership and decisive action.”

The guide presents a clear, two-part solution championed by the Mayor:

1. Tighten the belt: This involves prudent measures such as prioritizing new capital spending and implementing smart, responsible reductions to curb the growth of city expenses.

2. Grow the economy: This vital component emphasizes increased investment in local small business support, aggressive business retention and attraction strategies, and streamlining processes to make it easier to start and expand businesses within Palm Springs.

Crucially, the guide underscores that economic development is the one area demanding increased investment, not less. “We cannot cut our way to prosperity,” according to the mayor’s release. “The most effective way to fund public services long-term is to grow the local economy in ways that create jobs and expand the tax base — without raising tax rates.”

The Mayor also cautioned against relying on unsustainable tactics like drawing down reserves or shifting costs to restricted funds, which he described as “short-sighted and risky.”

The Residents’ Guide to the City Budget is now available to the public. Its release is a testament to Mayor deHarte’s commitment to transparency and his belief that an informed citizenry is essential for shaping Palm Springs’ prosperous future. The Mayor encourages all residents to review the guide and engage in this critical conversation.

You may download the full Resident Budget Guide here: https://www.rondeharte.com/_files/ugd/e5059d_799c21691f9f4a528e28c754ce53a8f8.pdf