[July 05, 2008]

Residents may get say in spending: City aldermen to examine proposed panel that would review budget, cuts

(New Haven Register (New Haven, CT) (KRT) Via Acquire Media NewsEdge) Jul. 5--NEW HAVEN -- The Board of Aldermen's Finance Committee Thursday will discuss whether to set up a blue ribbon panel to explore ways to reduce city spending.

The panel would have access to all city finance records and be funded by the Finance Department.

Members of the New Haven Citizens Action Network, a budget watchdog group, worry the panel as proposed would not give enough voice to outsiders in proposing budget cuts or how to streamline city operations.

Also, Sean Matteson, Mayor John DeStefano Jr.'s chief of staff, said the proposed panel may duplicate efforts of the existing Finance, Revenue and Audit Commission, a group of city residents appointed by the mayor.

Matteson added that any effort to rework the city budget needs to examine flaws in the state property tax structure, the funding mechanism for municipalities.

The panel, which would start Aug. 25 if recommended by the committee, would have 11 members, including three aldermen appointed by board President Carl Goldfield, D-29, the city controller, the city budget director, and six New Haven residents appointed by Mayor John DeStefano, Jr. and approved by the board.

The Black and Hispanic Caucus of the Board of Aldermen proposed the committee in January as a way to give city residents an official voice in shaping budget cuts and identifying ways to save money.

"These six citizens will have a voice," said Alderman Jorge Perez, D-5, caucus president.

NH Can members say the panel will have too much input from people they consider responsible for current budget woes.

The city had been struggling to close what was a $14 million budget gap by privatizing the trash transfer station and seeking $6 million in union concessions.

"So five of 11 are cast from the same mold as those who deliberate on the budget every year. And why do we need both the controller and the budget director?" Harry David, one of the network founders, asked in an e-mail to members of the group. "There is no reference to any goals of this panel other than to 'review of budgetary and financial procedures.' Should the panel look at multi-year budgeting, will it comment on major cost drivers, will it review the effectiveness of city departments including the Board of Education, Police, Fire, etc.? Just asking these questions makes me think that these are precisely the tasks of the BOA themselves -- so this panel is a bit of an abdication of their responsibilities."

Perez said the citizen members will have the ability to make minority reports and call for public hearings should they feel their concerns have been overlooked.

"This is a way for them to be part of the process," he said.

Matteson urged that the property taxes get close examination.

"We would welcome, should the board choose to create another task force, further review on the broken tax structure that exists in our state," he said. "We currently have a fundamental problem in Connecticut where the majority of a municipality's expenses can only be paid through property taxes. This remains a broken system and cities and towns all across the state are nearing a breaking point. Health care costs, energy costs, increases in municipal employee wages, the cost of employee pensions and hundreds of other things all rise each and every year and there remains only one principle means of revenue to pay for it all -- property taxes.

"The system needs (to be) fixed," he wrote.

To see more of New Haven Register, or to subscribe to the newspaper, go to http://www.nhregister.com.

Copyright (c) 2008, New Haven Register, Conn.
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