Markeshia Ricks Photo
Board President Tyisha Walker: tennis tourney brings jobs.
Mayor Toni Harp’s proposed new city budget shrank by more than $13.2 million Wednesday night, and may shrink more by the time it gets final approval.
The Board of Alders Finance Committee voted to approve the new version of the general operating budget the the fiscal year that starts July 1, now set at $541.3 million, after reviewing cuts made in the wake of consultations between the Harp and administration and leading alders.
The two sides agreed that it no longer made sense to pass a budget that counts on $31 million in increased state aid for the coming year, since the governor has announced deep cuts in planned aid for all cities (except Hartford, which faces bankruptcy) in the wake of a projected $5 billion two-year state deficit.
City Budget Director Joe Clerkin detailed the $13 million in trimmed proposed spending to the alders before the Finance Committee voted Tuesday night. Alders agreed that by the time the full board votes on the budget in the first week of June, more cuts may well be necessary based on the uncertainty at the state Capitol.
Westville Alder Adam Marchand.
New Haven’s revised budget for 2017 – 18 assumes a savings of $9.2 million through restructuring city debts with lower interest rates and factoring in expected premiums and refunds collected on bond sales; $5 million on the city’s debt service with any new debt it incurs; a $1 million reduction in a planned increase in money set aside for the city’s medical self-insurance funds; a $1 million reduction in transportation funding for the Board of Education; a $1.7 million savings on non-personnel costs through an annual program of examining department-by-department spending; and a savings $350,000 by further not filling vacant positions.
Clerkin said the original budget had not assumed any savings when it came to the city’s debt, but the revised budget assumes that the city will obtain a better interest rate when it markets its bonds.
Annext Alder Al Paolillo.
The budget also assumes revenue adjustments that would keep the car tax at 37 mills instead of dropping to 32 mills. The real estate and personal property mill rate would remain 38.68. The budget doesn’t completely give up on obtaining increased state aid; it still assumes about $21 million based on the current number in Gov. Dannel P. Malloy’s revised proposed budget. That number assumes that some form of a tax (or payment in lieu of taxes) will be instituted for real estate owned by not-for-profit hospitals.
Budget Director Clerkin assured alders Wednesday night that this will not be the final revision.
“When we submitted the budget back in March it was premised with us receiving a great deal of aid from the state,” he said. “I think what we’ve done in this package is to realize that we are still going to need significant resources from the state and from our voluntary partners, but we reduced that now significantly.”
Dixwell Alder Jeanette Morrison.
Westville Alder Adam Marchand commended the administration for “sharpening the pencil” and making“good faith efforts” to adjust the budget in a substantial way, though he did question the wisdom of reducing funding that would go toward paying for medical benefits — and\ area of the city’s budget that is chronically underfunded.
With little wiggle room and only further uncertainty on the horizon, alders deliberated over a handful of amendments that didn’t ultimately impact the Harp administration’s new spending plan.
East Rock Alder Anna Festa.
Alders Anna Festa of East Rock and Alphonse Paolillo Jr. of the Annex pushed to remove an additional $100,000 that the revised proposed city budget would give the Connecticut Open tennis tournament. The money would bump up the city’s contribution to that annual tournament to $200,000. Festa and Paolillo argued that the money could be put to better used somewhere else in the budget.
“This is bad timing,” Festa, who put forth and amendment to remove the additional funding, said.
Clerkin: More cuts coming.
But Alders Jeanette Morrison of Dixwell and Tyisha Walker of West River argued that in addition to providing a boost to restaurants and hotels in the city, the tournament provides additional short-term jobs during its two-week run and programming in the neighborhoods. Walker said she wants to see economic impact stats from the tournament before deciding to remove the money.
Festa’s amendment failed in a 5 to 4 vote. Hill Alder Dave Reyes abstained.
Alders agreed to the following policy amendments offered by Paolillo before voting the budget out of committee, which :
• Sequester any funds above $1 million for both the fire and police department budgets so that both chiefs have to come back to the Finance Committee and explain why they need to spend more.
• Remove a proposed increase in what the city’s anti-blight agency, Livable City Initiative, can charge for the residential licensing and inspection of properties. Alders seek a separate public hearing on the need for the increase.
• Establish that when the chief of police is out of town, the assistant chief in charge of patrol is in charge of the department.
• Require that any request for an increase in executive management salaries — such as for mayoral aide Jason Bartlett — be brought back to the Board of Alders for approval.
What percentage of the city budget goes to city employees' salaries & benefits?
What percentage of those employees live in the suburbs?
At what point does the City start asking for give-backs? I mean City employees, as a whole, have it pretty good. Your average homeowner? Staggering from some of the highest property tax rates in all of America!