Mayor, City of New Britain Budget Proposal

                               The Mayor's Budget Proposal to the City Council

April 13, 2011

To the Members of the Common Council:

I bring before you my eighth budget as Mayor of New Britain.  Each year it seems this message becomes more difficult as the financial challenges of an urban community in a stagnant economy outpace our resources.

This year, the picture is even gloomier as the storm clouds gather with predictions of “doomsday” budgets by Governor Malloy, where the state’s budget woes threaten to push back on Connecticut cities and towns.  Here in New Britain, that would mean a loss of $30.6 million dollars for a 10 mill increase in local property taxes. The devastation that such a state budget would wreck on our community, particularly our children and seniors, is unfathomable.

Over the past eight years, New Britain has done its part to keep our fiscal heads above water.  We have approached each year’s budget from every possible angle – reducing and controlling spending, decreasing number of employees through attrition and reorganization, keeping our bonding and debt service in check, expanding our Grand List and looking for new sources of revenue.  This constant budget vigilance has meant minimal property tax increases over the past eight years, which is critical for city taxpayers who are already paying more than their fair share.

But, as I stated in last month’s State of the City address, our financial future is no longer under our direct control. New Britain, like our sister cities and towns across Connecticut, are about to be swept along in a sea of red ink surging downstream from the federal and state governments.

I hope with all my heart that this doomsday budget is avoided, but I cannot in good conscience ignore the warning signs that at least some reduction in aid to cities will come to pass in the state’s adopted budget. As such, I have no choice but to drastically cut the City budget in anticipation of a draconian cut in state aid.

This budget therefore, cuts an additional one million from the Board of Education budget over the four million cut by the Board of Finance and Taxation, leaving the Board of Education with the minimum allowed under state statute:  $118 million. 

Council Budget Message

April 13, 2011

Page 2

Since we cannot further cut education funding without penalties from the state, the City side of the budget will bear the brunt of these drastic measures by reducing the City budget 10% across the board.  There are also cuts in accounts where we anticipate implementation of further cost saving measures or additional revenues, such as health care benefits, pension funds and sale of city property. I am presently working on an implementation plan that will identify those jobs and other areas that will be impacted by this reduction in operations.

Unfortunately, this budget as proposed will ignite frustration and loud protestations from many groups, such as those advocating for restoration to education funding or unions concerned about the lay offs that will most certainly occur.  I would ask that parents, teachers, city employees and taxpayers remain calm and pull together to have respectful, productive discussions on what is obviously “the perfect storm” of financial conditions that negatively impact New Britain’s budget. Hard choices need to be made, but we need to make them together as a community in order to continue to meet the difficult challenges that lie in the weeks and months ahead.

The Mayor’s budget is far from the last word on the FY 2012 budget.  The Council has until June 13^th to adopt a budget and you should have the benefit of more information on state funding.  Until we receive that information, I cannot recommend a course of action that raises property taxes, knowing full well that events outside our control will very likely leave the Council no choice but to do so to make up for reductions in state funding.

I would like to thank you for your due diligence and commitment as you enter the next phase of the budget process.  As always, please know that all department heads and I stand ready to work together with you both on the budget itself and cost saving measures throughout the coming fiscal year.

Sincerely,

Timothy T. Stewart

Mayor, City of New Britain