CAPE SHOWS PRUDENCE OVER ITS FISCAL FUTURE

When the U.S. economy exhibits a certain unsteadiness -- everyone is afraid to call it a downturn or a recession, thanks to so many years of growth and prosperity -- there is a certain eagerness to assume state and local economies are slipping too.

Indeed, you don't hear so many complaints these days about the squeeze on the local labor pool, particularly for entry-level jobs.

And there is no doubt many businesses in our community are being very cautious as wary consumers become more and more selective about their spending.

Then there are the overly obvious pocketbook pressures such as soaring gasoline prices on the heels of a colder-than-usual winter during which natural-gas prices soared.

All in all, it would be easy to accept the notion that an economic slowdown will produce less revenue for government to spend, whether it's in Washington or Jefferson City or Kelso.

Federal revenue continues to show steady gains, and forecasts continue to show enough revenue growth to produce whopping surpluses over the next decade.

Gov. Bob Holden has been fretting about Missouri's revenue for state government. He has even talked about declines in state revenue. But it would be far more accurate to say the current economy will likely generate less revenue growth than in recent years. In reality, the Department of Revenue is reporting record revenue collections from almost every source, including state sales taxes, which should be a barometer of consumer sales across Missouri.

Last week, Cape Girardeau officials spoke cautiously about city revenue expectations that could lead to budgetary concerns. City sales taxes, which have been growing steadily for years, are flat, officials say -- which is better news than declining sales-tax revenue would be, by far.

So city officials are, appropriately, weighing options to avoid a budget crunch should the current economic slowdown -- or pause, or breathing spell, or adjustment, or whatever it is -- turn into something more serious.

Already, the city has held up on some spending plans, just in case. And, looking ahead, there is a possibility city employees won't get across-the-board pay increases. Keep in mind that these employees still will get automatic increases of more than 2.5 percent built into the city's pay schedule.

A tight budget belt is always good policy, but the pinch is always more painful when economic factors rather than poor planning create spending concerns. For now, city officials are simply being prudent about the future.