No Tax Increase In Ganim Budget

Mayor Joe Ganim says the spending plan he submits to the City Council on Tuesday for the budget year starting July 1 will be less than the current year $552 million budget and include no tax increase.

By City Charter regulation, the mayor must submit his budget proposal by the first Tuesday in April. It then goes to the council’s Budget and Appropriations Committee for review and changes, a full council vote and then back to the mayor for possible veto action.

Ganim’s first budget last year was a scratchy mix in a revaluation year that increased the mil rate from 42 to 54 mils. Higher assessed areas such as Black Rock, North End and Upper East Side as well as commercial businesses were hit hard by the revaluation-year budget. Others stayed the same or experienced a small cut.

Ganim’s budget relies on some assumptions based on the state budget process in the works.

Ganim is scheduled to reveal more details about the budget in an address to the City Council Monday night.

During JG1, taxes went up about six percent his first budget year that began July 1, 1992. Ganim held the line on taxes the next 10 years.

Ganim must hold the line on taxes this year to provide some confidence with homeowners, businesses and the investment community that city finances have stabilized.

This is also an election year for the City Council with several potential primaries on the horizon. Incumbents want to be out there talking about no tax increase while challengers will remind voters what happened last year.

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4 comments

  1. The current-year budget benefited significantly on the revenue side from the approval of a lower assumed sales tax sharing than has showed up very early in the FY 2017 actual. So there has been $7 Million EXTRA revenue!!! And there have been “ghost positions” partially or totally open for half or more of the year. So going into a new year compare and contrast!!!

    And while we are at it, I was not able to copy or download the City employment charts. Reason?? Alternative??

    And neither the Mayor, nor Finance Director Flatto provided accurate data with the last budget as to Filled, Vacant, New positions. Why not?? Worst example is Police Department chart in terms of “fake news.” We pay real dollars, taxpayers do, based on fake news? Time will tell.

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