By Shane Smith • Feb 2nd, 2010 • Category: Blog, News, Politics
After last week’s volatile City Council meeting, where hundreds of angry residents protested a proposed municipal budget that would impose a 25 percent property tax increase on them, and what with Gov. Christie taking aim at special municipal aid as one of his first acts in office, the Healy administration may feel that it’s stuck with the Hobson’s choice of raising taxes or cutting services — in fact, this year the eventual choice may end up being both.
Mayor Healy and the members of the City Council’s budget subcommittee — Ward A councilman Michael Sottolano, Ward D councilman Bill Gaughan and Council President Peter Brennan — have provided numerous examples over the past few weeks of how the city has already deeply slashed services. City employees have been furloughed and rumors of impending layoffs have become a likelihood. Twenty-six fire companies became 22. Department directors were asked to cut their budgets a minimum of ten percent. But these efforts were not enough to prevent tax increases; as the city begins a new year rife with economic uncertainty, soft real estate numbers and a tight credit market, that spells big fiscal and political trouble for the administration.
Taking a step back from this year’s budget fracas, there are other issues that local good-government activists, elected officials and everyday citizens now find themselves asking. Such questions go beyond the mere choice of whether to raise taxes or cut services: Why does the city regularly introduce a draft budget well into the fiscal year, instead of well in advance of its start? Why do we depend so heavily on one-time revenue injections to fill budget gaps? How much development money poured into the city during the golden real estate years, and where did it all go? Who in the administration is considering the budget as a whole and setting stable overall priorities?
The Independent will be closely following the budget process in the coming weeks and months; along the way we hope to help answer these questions and others, and perhaps raise some new ones. For today, we leave you with two lists of cost-cutting suggestions from Ward E councilman Steven Fulop and good-government activist Dan Levin. We can’t say at first glance whether the implementation of any or all of these ideas would end up being a net benefit for the city, but as a wise person once said, “the journey of a thousand miles begins with a single step.”
As a city councilman, Fulop intends to make his cost-cutting suggestions by way of legislation. In a statement released last week, Fulop announced that he will introduce three measures at the next council meeting that he claims would save the city a combined total of “several million dollars.” He calls these bills “a first step” and urges his fellow councilmembers “to search for ways that they can cut several million dollars … and not merely be a rubber stamp on a horrible budget.”
* One ordinance would allow the public to decide whether to move municipal elections to coincide with the November general election. Fulop estimates this will save around $1.5 million, although City Clerk Robert Byrne has previously estimated this figure at $350,000.
* Another would eliminate city-paid health benefits for City Council members and the board members of the Municipal Utilities Authority and the Jersey City Incinerator Authority. Estimated savings: $500,000 annually.
* Finally, Fulop will introduce a resolution to request that the city outsource the responsibilities of the Division of Animal Control to the Liberty Humane Society, which receives a significant portion of its funding from a city contract for shelter services. Estimated savings: $800,000 annually.
Local good-government activist and 2009 mayoral candidate Dan Levin has been making noise about the city’s financial health for years. At last week’s City Council meeting, he gave the members an extensive “off-the-cuff list” of cost-cutting suggestions. Excerpts from this list are quoted below.
* Financial Master Plan (five year). Plan and anticipate expense and revenue.
* Shared services with the Board of Education (from IT to printing to maintenance).
* Combine Fire and Police Director positions (and their offices) into one Public Safety Director (we already have Fire and Police Chiefs).
* Eliminate the Deputy Mayor positions.
* Cap tax abatement contracts at 10 years; no extension of tax abatements.
* Independent review of municipal and school budget.
* Review finances to identify … funds allocated (by ordinance/bonds) but never spent.
* Energy audits.
* Digitize all documents and print on both sides of the paper.
http://www.jerseycityindependent.com/2010/02/02/how-to-cut-taking-a-look-at-the-city-budget/
