Fy 2014 proposed budget highlights


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  • What is it you most care about in your neighborhood. Think and then shout it out.
  • This is what we will be covering over the next 30-40 minutes. Please ask clarifying questions as we go along. This is meant to be an overview. I will also take questions at the end.
  • What are some basic facts about the FY 2014 proposed budget?The biggest thing is that the Mayor needed to close a $38.4 million shortfall. About 43% of CIP is water and wastewater (enterprise fund – so our water bills), 19% to transportation projects (TransNet – a ¼ cent sales tax voters approved years ago).
  • In the past, we saw huge cuts in library and park and rec hours. The city has been slowly restoring hours to the current levels.
  • Again, in the past, we say large cuts to public safety personnel – this budget is part of a recommended and necessary restoration.
  • We started FY2009 in July 2008, having closed a $22M shortfall. Then, in November 2008, (so FY 2009) city reduced services by $31.1 million due to the recession.Fire department rolling brownoutsPolice and fire academies cutLibrary and rec center hours cutTree trimming on an emergency basis onlyThen, 7 months later, FY2010 budget closed a $63M shortfall. The city has what is called a “structural budget deficit” or our spending out bases our earnings.
  • One of the things you will hear in the next month is that the Mayor is using one-time resources. Ideally, the city would be using one-time resources on one-time expenditures.
  • How have we filled shortfalls in the past?Service cuts, wages and benefits cuts to city workers, one-time resources, users fees
  • The city knows about $898M in deferred capital maintenance for streets, storm drains and facilities/buildings. This doesn’t include what we don’t know like sidewalks, or parks, or about 2/3 of the city’s buildings, or major water and wastewater assets.
  • Don’t know about the state of sidewalks, a lot of water and sewer and about 2/3 of facilities/buildings. Do know about our streets and storm drains because the city recently took a thorough look at them and can estimate how much money its going to take to fix or maintain them and when. What is a bond? A loan, essentially. using its credit card to fix infrastructure. 2012 bond, the city has spent or earmarked about 37% of it. If we wait to issue another bond until January of 2014, the city will save nearly $6m in FY2014 in debt payments. Its like waiting to buy a car until you need to. Why take on the payments until you have to? However, the concern is that we might run out of money for projects in the pipeline, thereby deferring their completion. It’s a delicate timing. Not clear if conditions assessments will measure only what infrastructure exists or if it will also report on what is needed but not yet built. Like sidewalks or streetlights or expanded libraries. This needs to be clarified. Debt service. Is there a better way to pay for infrastructure that is cheaper? The debt payments come out of budget so compete with all the things we like.
  • 5-year contract could save $25M this year and $140 over the 5 years of the contract. Depends on the details. Many of our city workers don’t make that much, just a decent blue collar job and have the same problems paying the bills that we all do. CPI has worked on managed comp analysis for years. It is our opinion that the city is not being diligent about the process and it could cost us big in money or impacted services. Nationwide, privatization is only a tool in the toolbox, not a real solution for structural budget deficits.
  • What is fairness?It is not equality. Equality means everyone gets the same. Fairness means getting what’s needed.
  • Next week, the City Council will be holding hearings all day, every day where you can tell them what you think is important. In your packet is the detailed schedule for the city departments you care about. This is why we need you to be engaged. All of these things. The most important thing the city does every year is making these decisions about the money, our money. Need to be engaged now.
  • Fy 2014 proposed budget highlights

    1. 1. Corinne WilsonCenter on Policy Initiatives
    2. 2.  Basic facts What’s in the budget? How does this budget differ from past budgets? What will be the big discussions? What questions should you ask?
    3. 3.  Shortfall to be filled: $38.4 million Total revenues: $2.64 billion Total expenditures: $2.75 billion Total reserves: $4.39 billion CIP expenditures: $1.72 million
    4. 4.  Library◦ No change in hours◦ New computers for public to use ($226,000) Park and Rec hours◦ No change in hours◦ Funding for new parks and open space
    5. 5.  Winter Emergency Shelter ($1.3 million)◦ Transitioning the Winter Emergency Shelter to year-around Bus Passes ($200,000)◦ Partnering with San Diego Unified to providefunding for free bus passes for low-incomestudents at four high schools San Diego, Lincoln,Crawford and Hoover.
    6. 6.  Police◦ 16 new police officers over four academies($1.2 million) Fire◦ 3 new dispatchers ($272,793) Lifeguards◦ New hourly, seasonal positions equal to 12lifeguards ($442,897)
    7. 7.  Funding for Community Plan Updates ($831,074)◦ Mission Valley◦ Otay Mesa◦ Southeastern◦ Uptown◦ North Park◦ Golden Hill Civic and Urban Initiatives Program ($950,000)◦ 6 new staff to “coordinate and link fragmented urbanand civic policies, and produce new platforms ofcollaboration between local governments, institutions,and neighborhood organizations”.
    8. 8. -$22.0-$62.6-$28.2-$56.7-$31.8-$38.4-$70-$60-$50-$40-$30-$20-$10$0FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014MillionsBudget Shortfalls
    9. 9.  Changes since 2001◦ Pools: FY 2001: open year-round FY 2013: closed for 3.5 months on rotating basis◦ Libraries: FY 2001: 48 hours/week avg FY 2013: 44 hours/week avg◦ Recreation Centers FY 2001: 62 hours/week avg FY 2013: 44 hours/week avg
    10. 10. One-timeresources$19.6M(44%)On-goingresources$23.7M(56%)Filling the Shortfall, FY 2014
    11. 11.  FY2014 budget issues◦ Spending $1M less than previous Mayor proposedfor maintenance and repairs◦ Waiting 6-9 months to issue next bond (Jan 2014)◦ Not funding conditions assessments forfacilities, sidewalks and parks ($2.3M) or majorwater and wastewater assets ($7.6M)
    12. 12.  Background:◦ $898M in deferred maintenance (known)◦ $100M bonds/year FY 2012-2017 + another$35M this year Discussion:◦ Of 2012 bond, 37% of $75M is “spoken for”◦ Waiting 6-9 months saves nearly $6M this year◦ Not clear that conditions assessments captureneeded but nonexistent infrastructure◦ Debt service for proposed total $800M in bondswill be $62M over the 5 years
    13. 13.  Five-year contract with city workers Managed competition
    14. 14.  Testing for fairness◦ Who pays?◦ Who benefits?◦ Who decides?◦ Who is left out?
    15. 15.  Next week: 9-12 and 2-5, everyday May 22, 6-8p evening hearing June 10, final vote
    16. 16.  Read the budget document on the city website. Read the Independent Budget Analyst’s reporton the proposed budget. Use CPI’s budget resources atwww.OnlineCPI.org Contact Corinne Corinne Wilson Center on Policy Initiatives cwilson@onlinecpi.org