Mayor’s Budget Cuts Spending, But Tax Impact Unclear

Mayor Bill Finch presented a $490 million spending plan to the Bridgeport City Council on Monday for the budget year that begins July 1, roughly $2 million less than the current year budget, courtesy in part of significant union concessions he achieved the past several months.

This is a screwy budget to assess quickly in terms of tax impact because it’s a revaluation year in which some property owners face property value increases and some decreases. I’ve spoken to some homeowners bracing for a major tax hit while others say they expect to receive a reduction based on notification of property values.

In a memorandum to council members Finch emphasized spending reductions overall from last year, cost decreases in nearly every major department and without a tax surcharge to the business community. The mayor’s budget recommends decreasing spending in the Police Department by roughly $1 million (current year budget $78.5 million) and $750,000 in the Fire Department ($51.3 million current year), made possible by union concessions.

He proposes a 10 percent cut to city libraries (gutted in his prior budget with most cuts reinstated by the council) but a 10 percent increase to the CitiStat Program that monitors departments for efficiency.

As for the Board of Education, it appears the mayor has submitted a flat increase. Stay tuned for the annual BOE/mayor showdown.

Sounds like the mayor’s saying okay boys and girls, here’s the budget, I’ve cut spending, I’m declaring victory, you deal with it.

Lots of unanswered questions. For instance, where department cuts exist such as the libraries will there be layoffs? The city is also at the mercy of ongoing state budget negotiations. What the state passes will impact the city.

“You’re going to need a math professor from Fairfield University to explain this budget document,” councilman Bob Walsh, an accountant, told OIB Monday night.

The Budget and Appropriations Committee will conduct its first budget session tonight. See previous post for a schedule of committee meetings. The full council will set the mil rate in June.

Hey, while the budget may be a little murky did ya see where Bridgeport/Stamford/Norwalk region was declared by Forbes as the fourth most livable area in the country? Maybe that will spike property values. Every little bit helps.

What’s the deal with the Connecticut Post website down all day Monday? Something we wrote?

Statement from Gov. Rell and state employee bargaining unit:

Governor Rell and State Employees Union Leaders announced (Monday) that they had worked out the framework for an agreement intended to help reduce costs and protect public services in the current fiscal year and the upcoming biennium. When finalized, the agreement will provide for labor cost savings of over $637 million in the upcoming biennium, in addition to savings in the current fiscal year. The framework also provides job security for permanent employees during the upcoming biennnium, as well as the flexibility needed to make organizational changes. Details of the agreement are still being discussed, including translating its job security provisions to the particular circumstances of the Judicial Branch and higher education institutions.

In order to respect the democratic processes of the unions involved, Governor Rell and union leaders have agreed not to provide details to the press until they can be presented to union delegates and members. This process is expected to take several days. However, the Governor and union spokesperson have confirmed that the proposed agreement includes a Retirement Incentive Program, in addition to changes in health insurance and wages.

While the parties expressed optimism that a positive result would be reached, they cautioned that more work remains to be done, and that any agreement ultimately must be presented to union membership for ratification, and to the General Assembly for approval.