Recession, in election year, is driver of tight budget, officials say

5% in more property taxes in this tough economy?!  This budget is so full of wasteful spending and does not cut enough - instead - it adds.  C'mon Dave - who are you fooling????

In a tough economy and election year, Mayor Dave Cieslewicz's proposed $247 million operating budget for 2011 offers the fourth lowest spending increase in 15 years.

The 3 percent property tax levy increase — slightly more than the 2.9 percent disclosed by the mayor's office on Monday — is the second lowest during that period, but it will increase taxes on the average $241,217 home by $93.45, or 4.8 percent.

The tight budget for 2011 results from three harsh economic years, not politics, said Cieslewicz, who has not announced a decision on whether to seek a third, four-year term this spring.

The election "doesn't really enter into my calculation much," he said.

Veteran Downtown Ald. Mike Verveer, 4th District, partially disagreed.

"This is an election year budget. No doubt about it," Verveer said of the low spending and tax increases. "But one difference now, we are dealing with a real recession in our community."

Small tax base, new costs

In forging the budget, Cieslewicz said he had to deal with a shrunken tax base and $6.7 million in new costs to cover increases in health insurance, debt payments, retirement costs and fuel prices.

The budget, the mayor said in unveiling it Tuesday, maintains basic services and offers only about $500,000 for new initiatives, mainly on neighborhoods and public safety. Cieslewicz rejected a Police Department request to permanently add 20 officers.

Of the $500,000 in new spending, more than half would cover an increase in community services funding, a new community development grant writer, and upgrading four police officers to detective for a new unit devoted to repeat offenders.

Ald. Jed Sanborn, 1st District, said he's only beginning to comb through the 169-page budget, but observed, "I'm surprised we are able to maintain the level of service with such a small (tax) increase. There's always an untold story in there."

Not driven by politics

Cieslewicz said the budget doesn't rely on gimmicks — it draws no money from the long-term cash reserve — but rather a consistent budgeting over eight years, with an eye to taxes on the average home.

Cieslewicz said he wasn't driven by politics. In five of the mayor's eight budgets, including 2011, the tax increase on the average home is higher than the average increase of the past 15 years.

"Taxes under my watch did increase above the rate of inflation," he said.

Verveer said he expects the council to debate more spending for social service agencies, police, and staving off the layoffs of three employees accounting for two full-time positions. The council will begin making final budget decisions on the operating and capital budgets in mid-November.

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