HomeMy WebLinkAbout11-10-08 Final vote on City’s 2009 baseline budget set for tonight
Office of the Mayor
NEWS RELEASE
November 10, 2008
4:15 p.m.
Final vote on City’s 2009 baseline budget set for tonight
Contact:
Mikki Dobski, Director of Communications & Special Projects, 235-5855 or 876-1564
or Catherine M. Fanello, City Controller, 235-9216
The South Bend Common Council will vote on the City’s proposed 2009 budget at its 7
p.m. regular meeting. Here are some of the highlights:
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BASELINE BUDGET: The Council will consider a baseline budget, which will
show, in essence, a best-case scenario: a slight 0.4 percent increase in the overall
2008 general fund budget of $67.3 million. A baseline budget provides the City with
the maximum flexibility in continuing services at essentially the same level – if
additional sources of revenue are found.
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WHAT’S ENTAILED: The baseline budget includes a 2 percent increase in salary for
non-bargaining employees; 2.2 percent and 1.65 percent increases, respectively, for
police and firefighters. Firefighters also negotiated for and will receive longevity pay.
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REDUCED SPENDING PLAN: A proposed spending plan for 2009 and 2010 shows
severe reductions in services that would be necessary if revenues lost to the property
tax caps are not replaced. Without new revenue, Mayor Stephen J. Luecke will return
to the Council with a reduced appropriation that will reflect the 27 percent overall cut
in the City’s budget by 2010. Proposed changes included:
Cuts of more than 200 personnel, including 53 firefighters and 40 police officers.
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Elimination of all school crossing guards (after the 2008-09 school year), after-
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school programs and funding for community-based social-service providers.
Closure of all city pools, many landmark park facilities, summer playground sites
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and recreation centers.
Pay freezes for many city employees along with voluntary 5 percent pay cuts for
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Mayor Steve Luecke, City department heads and all staff in the Mayor’s office.
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REASON FOR CUTS: House Enrolled Act 1001 is reducing property taxes for South
Bend property owners by a projected $21.3 million beginning in 2010. Local
governments depend on property taxes for most of their operating revenue, including
for public safety, neighborhood services, economic development, parks and basic
services.
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OPTIONS FOR NEW REVENUE: The only option provided to local governments by
the state is to increase local option income taxes. St. Joseph County’s local option
income tax is now the 10th lowest of the state’s 92 counties. Any change to the local
option income tax would need to be approved by two of the councils from
Mishawaka, South Bend and St. Joseph County.
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NEXT STEPS: The Council and Mayor Luecke are planning additional budget
meetings to review options within the proposed spending plan. Decisions about cuts
will be finalized in the first quarter of 2009. The Mayor and Council representatives
also will meet with representatives of the Mishawaka and St. Joseph County councils
to weigh changes to St. Joseph County’s local option income tax.
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LEGISLATIVE OPTIONS: The Mayor will continue to lobby state officials for
alternative sources of revenue for supporting the cost of local government services.
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