How To Manage City Finance Effectively, With Rick Cole
Mar 31, 2025
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Rick Cole, the chief deputy controller of Los Angeles and a councilmember in Pasadena, brings his city finance expertise to the table. He discusses how budgets serve as value statements and the importance of directional financial management. The conversation dives into the critical role of public participation in financial decisions, emphasizing the need for community engagement. Cole highlights innovative budgeting strategies and the moral implications of spending choices, making a strong case for civic involvement in shaping effective city governance.
Rick Cole argues that budgets should serve as moral documents that align a community's spending with its core values and priorities.
He emphasizes the importance of data-driven decision-making in local governance to address structural budget imbalances and improve resource allocation.
Cole advocates for active citizen engagement in city finances, encouraging residents to take ownership and participate in local governance processes.
Deep dives
Upcoming Strong Towns Accelerator
The next session of the Strong Towns Accelerator will take place in April and is designed for individuals eager to initiate change in their communities, specifically in the housing sector. This six-course series, titled 'Escaping the Housing Trap,' focuses on accelerating housing reform and creating stronger towns. Interested participants can familiarize themselves with the program and sign up at strongtowns.org/accelerator. For further inquiries, the program coordinator is available via email for assistance in getting started.
Rick Cole's Background and Community Engagement
Rick Cole, a key figure in local government and development, has a rich history of community involvement beginning from high school. He found himself advocating for diversity during desegregation efforts and later became actively engaged in local governance by serving on the city council and as the mayor of Pasadena. His experiences highlight the importance of local leaders making significant changes that resonate with their communities. He emphasizes the value of diverse conversations and the ability to engage with differing viewpoints, particularly in today's polarized environment.
Budgets as Moral Documents
Rick Cole articulates the idea that budgets should be considered moral documents, reflecting a community's values and priorities. He argues that financial allocation should reflect what is truly important to a community rather than adhering to outdated expenditure patterns. Cole highlights the necessity of questioning existing budget practices and adopting a zero-based approach to reevaluate priorities. This perspective underscores the importance of aligning spending with the genuine needs and aspirations of the community rather than simply continuing past practices without scrutiny.
Addressing Structural Budget Imbalances
Structural budget imbalances often arise when spending priorities grow faster than income, complicating local government finances. Cole emphasizes that many budget decisions are swayed by politics and public opinion rather than rational analysis, leading to inefficient resource allocation. He illustrates this with anecdotes about public pressure on local governments that hampers the ability to cut ineffective services. Addressing these imbalances necessitates a commitment to data-driven decision-making that focuses on the effectiveness and outcomes of spending.
Empowering Citizens to Participate in Governance
Cole stresses the responsibility of citizens in local governance, advocating for greater public involvement rather than passively relying on elected officials. He compares government to a vending machine, where citizens often expect services without understanding the complexities involved in delivering them. Encouraging citizens to engage, provide input, and even take action in their communities fosters ownership and accountability. This shift from a reactive to a proactive community approach is essential for building strong towns and ensuring that the local government effectively meets the needs of its residents.
Rick Cole is the chief deputy controller of Los Angeles and a councilmember in Pasadena, California. He’s known for tackling challenging city budgets and has been honored for his work as a public official several times, including with a Excellence in Management Award.
Cole joins Chuck Marohn on this episode of the Strong Towns Podcast to discuss city finances and how they can be improved. Their conversation includes the following topics:
What does it mean for budgets to be value statements?
How do you direct city finances in a truly effective way?
What role should the public play in a city’s financial decisions, and how can city staff and officials enable their productive participation?
