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Mayor Sets The Budget “Table”
by Paul Bass | Nov 15, 2010 11:06 am
(25) Comments | Commenting has been closed | E-mail the Author
Posted to: City Hall, City Budget
Mayor John DeStefano is working on a Thanksgiving week surprise. The menu features tough talk about the city’s fiscal future.
He said he needs to start talking turkey about “reinventing” government and painful cuts months before another raucous budget season gets underway.
So he plans to make a public statement about how New Haven will navigate what he believes will be a brutal upcoming four years for city governments in Connecticut. He also wants to look at what kind of business New Haven government should continue doing—and not continue doing—over the long term, and how.
“I’m going to offer a clear strategy about what the city’s priorities ought to be,” he said in an interview.
In recent weeks the public has gotten a glimpse of the process underway. Rumors swirled that the mayor had already come up privately with a number of layoffs; DeStefano said that’s not true. Last Wednesday night he told the Westville/West Hills management team that he’s looking at consolidating the number of police districts in town.
The general idea is to look at “how many bosses you have,” and whether fewer are needed, DeStefano told the Independent. He said he won’t be presenting details about proposed cuts or consolidations in his Thanksgiving Week talk, which he described as “table-setting.”
He said he wants to start public conversation about tough budget choices now rather than in March, when he submits the proposed budget for the next fiscal year.
So DeStefano’s team has been crunching numbers to get a long-term look at the city budget. It doesn’t look pretty, with a looming $3.3 billion state budget deficit and mushrooming pension and health care costs.
A five-year study recently completed for the city’s Financial Review and Audit Commission (FRAC) projects an $82.7 million general fund budget gap by the end of 2015. It projects the city’s annual pension liability mushrooming from $29 million to $43 million in that time; health insurance is on track to leap from $49 million to $76 million. Click here to read the five-year study, which includes some ideas for addressing the gap. And click here to read an article and reader discussion about FRAC’s deliberations.
So, with a local political climate averse (to put it mildly) to tax increases, the administration is hunting for ways to make government cost less but still move the city forward.
DeStefano has directed all his agency heads to start early in identifying service reductions and possible new sources of revenues. He’s also asking his appointees to look at new ways to raise revenue. For instance, public works has started bidding on work that technically non-city public agencies like the housing authority and parking authority otherwise send to private contractors. (Click here to read Betsy Yagla’s story about that in the Advocate.)
In addition to agency-by-agency examinations, the mayor said, he’s looking at broader changes with the aim of rethinking who does what jobs and how. He wants to reexamine questions like: “How do we deliver custodial services? How do we treat solid waste? How do we treat storm water?”
The FRAC reports stated that the city could save money long-term by modernizing the fire department and cutting police overtime; and boost revenues for increased fees for activities like baseball in the park.
Hill Alderman Jorge Perez said he looks forward to hearing what DeStefano has to say.
“I’m happy that he’s going to start that dialogue,” Perez said. “It’s critical that this be done in collaboration with the two branches [of city government], not that it be perceived as one person’s idea who is inflexible to other people’s” ideas.
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Comments
posted by: SaveOurCity on November 15, 2010 11:11am
Quoting a very wise person, “We don’t have a revenue problem here, we have a spending problem.” It is critical that a line is drawn in the sand and we start reversing the poor decisions of the past. If we don’t, we’ll continue to bleed jobs and middle class residents.
The words from our Mayor sound good. However, they need to be backed up by action. Is he willing to stand up to the unions who do so much to get him elected?
posted by: Vinny G on November 15, 2010 11:43am
SaveOur City is 100 percent correct. The City has a out of control spending habit that needs to be curtailed immediately.
posted by: anon on November 15, 2010 11:52am
Good luck trying to rein in these costs.
The cost of health care is going up mainly because of ballooning obesity and high smoking rates.
To control these, the state and federal government need to fund more prevention activities, like incentives to quit smoking, well-lit main streets at night (Yale University shouldn’t be the only place in New Haven with decent urban street lighting, but it is right now!), more walking and biking routes, better school food, livable neighborhoods.
Right now there is an enormous disconnect between our state’s policy and rising costs. The city can’t be asked to spend more because almost all of their employees live in the suburbs and all costs are regionalized anyways, so for the city to spend money on itself would produce almost zero return. As a result, without state action, everyone’s costs will continue to skyrocket.
Locally, money will continue to get sucked out of our cities (in the form of property tax) in order to subsidize suburban lifestyles and the city’s suburban workforce.
It doesn’t matter whether the city pays for the health care costs, or someone else does, ultimately the costs come back to haunt all of us.
The city should simply cut its losses right now and allow the state and federal government (e.g. Medicare/Medicaid) to take over the provision of health care. The city is too small and with too limited reach to take on this responsibility. The city can’t even levy new taxes on things like restaurants, even though only 50% of property is even taxable to begin with. The city should also convert all of its pensions into individual retirement accounts, use the existing value of the pension fund to reduce city debt (like Enron did when it declared bankruptcy…sorry employees!) and just begin doing a 5% match to salary, like other employers do. Social security and state welfare programs will cover the shortfall.
We think we are saving money by cutting things like street lighting and smoking prevention, when the reality is that each dollar saved now ends up costing us $20 a few years down the road. Other countries have far smarter policies, which is why they have lower health costs. The United States used to be one of the ten healthiest countries in the world, now it ranks about 40th (and this is not because of immigration - immigrants are actually significantly healthier than Americans).
The main reason why we don’t invest in these things at a neighborhood level is because most of our decision-makers live in the suburbs or in neighborhoods like Westville, which are healthier and do not need street lighting to the same extent. Things like reliable bus service don’t matter because all of our decisionmakers, like the Mayor, drive to City Hall each day, even though well over half of the the city they serve does not. Even most of the decision-makers who live in central city neighborhoods drive everywhere. So we have 50-100 foot wide highways in every city neighborhoods, instead of streets anyone with the choice would choose to live or start a business on.
All of these issues could be addressed simply by raising relative tax rates on the very wealthy and cutting taxes on average working families, but unfortunately our Congress is currently controlled by ultra-rich individuals and large corporations like Aetna and UnitedHealthCare (90% of which are owned by the very rich as well) who see greatly increasing profits as people get sicker and poorer.
Because companies like Aetna control the entire political system, the current GOP proposal for health care would not result in any reduced costs: it would keep health reform exactly the way it is (including the mandates to buy insurance), but just gut the provisions that protect consumers, like the one about covering folks with preexisting conditions. Costs would be the same or higher, the only difference would be much higher profits for insurance companies at the expense of poor and sick families.
The Republicans and many Democrats are happy with the fact that the top few now control the majority of the nation’s wealth, and propose making the Bush tax cuts permanent so that people in the top 0.1% can pay billions of dollars less in taxes.
Since nothing is likely to change at the federal level, we’ll need to try other methods as a state if we want to have any hope of addressing the problem of increased health and pension costs. Let’s hope Malloy is up for the task! Ultimately, though, it is up to voters to elect the right people.
posted by: DKR on November 15, 2010 12:11pm
it all starts at the top,.....does anyone have proof that mr mayor himself is helping the cause by declining a raise or giving back the raise he took last year???? don’t trust him at all,..he’s ruined this city..!!!!
posted by: Brian L. Jenkins on November 15, 2010 12:26pm
Can you believe this statement from the good Mayor? “The general idea is to look at “how many bosses you have,” and whether fewer are needed, DeStefano told the Independent.“He’s the one that hired these people!
It never ceases to amaze me how the Mayor consistently make these errors of judgment privately, and tries to hoodwink the taxpayers by pretending to be efficient, publicly.
posted by: point of clarification on November 15, 2010 1:28pm
save our city - the question you need to ask and be full throated about is: will voters back the mayor when the unions he stands up to come after him in the election? will you?
DKR - the mayor didnt take a raise last year, but he did cut his own pay.
anon - well put on healthcare and the bush tax cuts
posted by: Cedarhillresident on November 15, 2010 2:40pm
point of clarification
I would say that the mayor really needs to stop using the residents as an endless wallet. From what I have seen every year he is a juggling act. Separate and divide tactics with a touch of fear. Do I believe the tough cuts need to happen HELL YES and WAIT TILL NEXT YEAR!! (You ain’t seen nothing yet!) The property taxes have tripled in the past 4 years for many. And the financial irresponsible has not come to a head yet. What happens this year is beyond important to what happens next year…no more fancy dancing. WE ARE SCREWED and the mayor is going to have to suck it up and do what he knows has to be done. THE VOTERS AND TAX PAYERS are his bosses.
So he is not getting my vote at this moment…and I am not standing with him at this moment. UNTIL I see him make the hard choices!!!!! Until I see in writing his budget proposal all 700 pages (and would love more itemizing in the BOE NON UNION JOBS) not to mention stop firing the lay people I realize there is a peaking order…but lets get real union agreements DO NOT APPLY to non union working top paid paper pushers. (ok this a bit of venting but a totaly realistic suggestion) And all these choices need to be made before July 2….and the primary’s.
And I will scream if he trys cutting any more from parks for gods sake…they bring in money!
I am interested to see what he does….I hope it is equal to what the private sector has done a few years back.
posted by: Westville Advocate on November 15, 2010 2:49pm
I feel like it is about time to test our legal system and sue this city for spending my tax dollars on stuff like pensions and “too many bosses”. I didn’t vote for this Mayor so it wouldn’t me hypocritical to sue him. I pay taxes for services, not for pensions, not to employ “too many bosses”.
And you ask, what would I sue for? Well, I would sue for the portion of my taxes going to all these ridiculous pensions and expensive health care and salaries to employ “too many bosses” back in the form of a credit every year.
I need to find a good lawyer.
posted by: anon on November 15, 2010 3:03pm
Channel frustrations to Hartford and Washington. All of their current proposals give hundreds of billions in tax cuts to the ultra-rich, while cutting federal aid to states, which translates directly into less aid to towns and cities.
Given the fact that Washington is now completely controlled by the ultra-rich, the city’s only realistic option here is to continue to raise taxes (so that our money can continue to flow out of town and subsidize the lifestyles of our almost entirely suburban, unionized city workforce).
posted by: Townie on November 15, 2010 3:28pm
The only way to control the upcoming budget is to demand a direct approval by the citizens via referendum. The people of this city should be able to vote for or against the mayor and BOA’s plan. Direct action is needed if significant change is desired. If the Tea Party has taught us anything, it is that the collective will of the people is a force with an enormous capacity to effect change.
posted by: Vinny G on November 15, 2010 5:41pm
The fight needs to start at the city level. Here not in Washington. The same public officials have been in Washington for years who represent New Haven. Haven’t seen to much change have we?
posted by: WWWStopDestefano.com on November 15, 2010 6:08pm
While the mayor tries to snoozle the residents once again, maybe someone with the independent or a taxpayer would like to check out deceit in action. The mayor and his more recent hires within his administration are in a 401. They pay in nothing, he puts in for them 7 1/2% in a contribution and he puts in for them 7 1/2% for their social security. Grand total for them is 15%. Oh, almost forgot. Some of these lucky people get 10% put in for them and the 7 1/2% social security.
Nice huh?!?!?
Yet if you talk to our wonderful mayor or those employees (he or they) will say ‘Boo Woo we get no pension, not fair, those other employees are sooooo greedy’!
Oh, and by the way. For awhile there the administration forgot to pay into the pension their share, (the ones that are in one, which is most of them) until they were caught. Yes, I can see how the little guy employee should take the blame and brunt for this. Wake up people, don’t let him snoozle you anymore. Check it out, it is all a matter of freedom of information.
posted by: Louis on November 15, 2010 8:35pm
What do they mean when they say modernize the Fire Department? Lets hope this economy gets moving forward quickly.
posted by: Margaret B on November 15, 2010 8:35pm
The five year study by Management Partners this story links to really spells it out. Eliminate longevity pay, cut fire, police and education budgets and most of the problems go away. Its also critical of the lack of planning for the school building program. Todays problems are 100% Johnny Boy’s fault. Or if I tell the truth all our fault for voting him in year after year. He built too many schools to line his pockets with campaign contributions from contractors and architects. Taxpayers have suffered. Now the workers will suffer. When will the mayor get his payback. He should be run out of town.
posted by: Lucy Justis on November 15, 2010 8:36pm
Anon, your comments at times are way too long and sometimes your rambling is very distracting from the real issue. After saying that, the real issue is the problem, which is the mayor. Anyone ready to challenge him? The city cannot withstand one more term with him. He is destroying our wonderful city. He has done so much damage that it is frightening.
posted by: Cedarhillresident on November 16, 2010 7:00am
Margaret B.
So far I have only got word of one def. running for mayor…another Willie Green type, will not get my support. But with that said yes the report that the group Jeffrey Kerekes is on tell a scarey and realistic view. You can not deny the true of our city any more. This was a third party group with no ties to the city that did this report.
The fight in DC and Harford do need to happen but we have been hearing that excuse for way to long. We are not going to get enough of the surrounding towns to support city spending while the towns get less….Property tax reform is a must..it will level the playing field for citys.
But here, and now the cuts need to happen the mayor has the ideas, the mayor KNOWS what needs to be done…will he do them is the question or will he play his shell game??? He needs to hand the budget in soon enough. Will he play the blame game? Again? It’s the unions, it’s the state. I can not control this….**cough cough** BS
posted by: Cedarhillresident on November 16, 2010 7:18am
ps
One more added note, we as a community also have to realize that some of the cuts that have to be made are not going to be ones we like…you can’t cut this, you can’t cut that…remember the cuts are for the greater good and the future affordability of this city… we will have to suck it up and let some cuts happen. But with that said, the mayor needs to but his cards down…to get the residents to take cuts they don’t want we need to see the top heavy patronage jobs go…you need to show you are in it Mayor for people to work with you….. show us the cuts you are willing to make…you know which ones they are.
And residents we are going to have to NOT fight against some he makes.
Renters and city new comers this effects you to…because your rent will go up if taxes do!
posted by: The Education Mayor on November 16, 2010 10:44am
How many six figure school employees do we need? Start with the school’s top heavy over paid school administration. Mayor you already got your monies worth(that get out the vote for only “your” campaigns by them.) Oh right your running again next year. The wheels on the bus(yellow) goes round and round.
posted by: Gary Doyens on November 16, 2010 12:36pm
Let me set the table first before the Mayor Estevan slops down a smorgasbord of rotten food which undoubtedly, he will blame on the chef located in Hartford or Washington or over at one of the union HQs.
Let’s be perfectly clear. The mayor is directly and irrevocably responsible for the city’s financial problems. He has been playing games for years with the city’s books - everything from filing required financial reports late to setting up “authorities” that are nothing more than off book borrowing schemes to prop up his spending and pretend that all is balanced. How many years have the books been balanced in the last 45 days of the FY by a windfall pre-payment from Yale, a contribution from the parking authority, a last minute bond deal for one of these authorities. It’s a con game and it’s time for it to end. It’s time for the mayor to apologize to the citizens and taxpayers and to man up on his responsibility.
That said, we are management heavy at the school board, the police department and at City Hall. Trim it. Overall, we carry more than 5,000 employees. Trim them. Institute a real hiring freeze and end all double dipping. Cut departments like LCI in half. Aside from being near worthless and a luxury in good times, it charges fees for which it does no work. In any other line of business, you’d go to jail or be hauled in by the AG’s office. They are supposed to be inspecting all these apartments and are paid to do so. They don’t. So why collect the fees?
Union contracts need to be re-worked. Before the mayor runs off and blames the unions, understand this: Unions do what unions are supposed to do. They push for more and work to create loopholes in the contract so their people can get better pensions. The mayor’s job is protect us from that and to push back so there is a good balance. But DeStefano has sold us out and now complains about the very contracts, with rich benefit packages we can’t afford, but that bears his signature and approval.
Now that the table is properly set - let’s see what the mayor serves. Better hold your nose.
posted by: Mary on November 16, 2010 1:35pm
Lets not look at the working middle class people for a change. Let’s look at the number of women in this city with numerous children from different fathers who are jobless. The fathers are jobless. They are given assistance. This assistance costs the city and it’s tax base.
The problem is, the city basically has a very small tax base. How about all the illegals here in the city who pay no taxes, illegally register their vehicles to places out of state, etc…..
The city as well as the nation is going to hell in a hand basket…
posted by: Jenn on November 16, 2010 1:43pm
Let’s look at all the new schools in the city. Do we really need all those new schools?
Schools need to be filled with teachers and other workers. $$$$$$$$$$$$$ There is a major spending problem in New Haven and now the Mayor wants to cut essential employees wages, and healthcare…. When the mayor wants a wage increase, he gets it…. It’s all about him.
posted by: Deborah Durkin on November 16, 2010 3:06pm
Jenn,
Your statement is accurate regarding schools. The mayor’s obsessive compulsive spending so he can be known as the school mayor is going to bankrupt this city.
Also, many of these schools he built are having a terrible shortfall of what he thought we would get reimbursed for. Not because the state is cheating us, it is because he didn’t follow the rules and added on excessive luxuries in the schools that he calls state of the art, that the state has made clear they will not pay for. It is in the millions and guess who is going to make up the difference? Yes, that would be you and me as tax payers and the city employees! It is going to be H_ll on earth living through anymore terms with this mayor. Someone needs to come forward and unseat him. We cannot withstand another term with him.
This information is easy to find either through the state or request it from this administration through FOI. YOU WILL BE SHOCKED!
posted by: Cedarhillresident on November 16, 2010 4:31pm
And the tax payers get to split this among themselves….. high paid staffer get the rest, Happy Turkey day….you turkey’s :)
http://2.bp.blogspot.com/_wb8bAl1P-N0/TKUIsVpFzRI/AAAAAAAAQ5I/wtaBftEruW0/s1600/pea-on-a-plate.jpg
posted by: Reality Check on November 16, 2010 10:40pm
Do you REALLY need to combine districts because you don’t have the staff? Just take a walk through the police department and find cops of all ranks making mega $$$$$$$$$$$ pushing papers and behind desks. Ill bet you fill those positions without a loss to the comunity in a heartbeat.
posted by: Cedarhillresident on November 17, 2010 6:31am
Here is a reminder article
http://www.newhavenindependent.org/index.php/archives/entry/budget/
Also the mayor talks about the 8 mill hole from the present budget…If I recall during last years budget season the alders had suggestions and were told they could not because the IBB was considering them for cuts…in fact I think the IBB had a potential 30 million in cuts set aside, but they keep using the meters as a stopping point..what about all the other cuts they had on hold?? We paid the IBB to find 8 mill in savings .... and they did not????
