They’re not going to fill a $30M shortfall by not ordering paper and pens. And we’ll be paying for some pretty expensive curb painters and grass cutters.
This doesn’t instill much confidence. These changes aren’t going to save much, relatively speaking. Do you think this means she’s not hiring the extra transit workers and Police Auditor? Or are those positions that are “other key positions at the discretion of the Mayor”? I think we need a better plan than this if there is really going to be a $30M hole in next year’s budget.
To me, something doesn’t make sense about that $30M projection for next year. FEMA should be paying for reimbursements for many COVID-19 related expenses, and predicting next year’s budget revenue shortfalls seems near impossible as we don’t know yet what will be happening. And given that most of our revenue is from property taxes which are expected to remain steady, what are they basing those projections on? Building is currently booming. I’d like to see what is in that $30M number, and I sure hope there is a better plan than this! So far, the city is only showing a little over $3.5 M of expenses from COVID 19.
ADMINISTRATIVE GUIDANCE FOR 2020 OPERATING BUDGET
Date: May 5, 2020
To: Department and Division Heads
From: Mayor Satya Rhodes-Conway
Subject: 2020 Operating Budget: Administrative Guidance
2020 Outlook: 1st Quarter Summary
Based on 1st Quarter projections, the City is facing a $30 million shortfall for 2020. This projection is across all funds and is primarily driven by a sharp and unexpected decline in revenues resulting from the economic impacts of the public health emergency associated with containing the COVID-19 outbreak. Based on this outlook I am implementing Administrative Guidance to reduce spending effective immediately. The Finance Department will provide guidance and instructions pertaining to how these measures will be implemented.
These actions are in place for all funds and agencies in the City’s operating budget.
The status of the measures will be re-evaluated at the close of the 2nd Quarter and additional actions may be implemented in the next weeks and months.
Administrative Guidance
- Immediate Hiring Freeze on All Positions, with some exceptions for essential services
- Any positions newly created in the 2020 budget and not yet filled are on hold indefinitely.
- Filling positions that do not address the following criteria will be placed on hold unless there is a compelling justification provided.
- The position is needed to perform activities associated with COVID Response &
Recovery - The work of the position results in revenue generation
- Other key positions at the discretion of the Mayor
- The position is needed to perform activities associated with COVID Response &
- Before filling positions that may result in backfill overtime, agencies should consider service delivery changes that can accommodate providing the service with fewer positions.
- Requests are subject to Mayoral approval.
Additional review & approval for Seasonal Hiring
- Seasonal staffing requests need to be submitted to Mayor’s Office for approval
- Wherever possible, activities performed by seasonal hourly staff should be performed by redeployed City staff
- Hourly hiring for activities that will be impacted by reduced service levels should be not pursued.
Halt all non-essential supplies and purchased services spending
- Focus spending on COVID response and any associated work environment changes.
- Management and consulting contracts require Mayor’s Office approval.
- P-card transactions will be closely monitored and agency heads asked for justification of non-essential expenditures.
These are unprecedented times for our city, state, country and world. We have risen to the
challenges presented over the past seven weeks and have much more to surmount in the days, weeks, months and years ahead. I am so very grateful for your efforts and those of all city staff. As a city, we will work together and continue to fulfill our service promise.
SUPPLIES AND SERVICES
Looking at the biggest general revenue fund spenders by department, if the police department hadn’t spent money supplies and purchased services, out of their $86M budget, with in general funds of $81M, they would have saved $4.3M. Now, their expenses are probably all essential and there won’t be hiring freezes there, so I doubt we’d see any savings from the department with the biggest expenses. The next biggest department is the Fire Department budget of $57M in general revenue funds of their $61M budget, if they didn’t spend any money on supplies or purchased services, they would only save $2.6M the entire year. Again, essential service and likely won’t see any savings there. The next highest budget is Streets at $26M general funds of their $36M budget and their budget is $6.4M in supplies and purchased services. They may have some savings. Parks has a $18 budget, $16M in general revenue funds and they have $2.8M in supplies and services. Community Development‘s $14M in general revenue funds and $17M pf their $21M budget is purchased services with contracts already in place. $54M of the budget is debt service. All other department budgets are under $10M. So you can see why this won’t get us anywhere substantial in saving money.
HIRING FREEZE
I don’t know how the public could see what positions are open at the moment, but it would be interesting to see. I guess I’ll file an open records request.
CONCLUSION
The mayor’s command from on high does not seem to be a real solution to the current financial situation – whatever it actually is, the $10, $20 or $30 million dollar hole in next year’s budget won’t be fixed in this way. It feels like once again we have a mayor exaggerating the budget problems so they can swoop in and save the day. Just once, I’d like to have a mayor that was straight with us and didn’t play these games. Perhaps the next financial update to the finance committee will be more meaningful?
