No Change To 2014 New London Budget In Second Reading

The City Council, still divided between opposing budget proposals, reaffirmed a budget approved last month in a second reading on Monday.

The Council voted 4-3 to approve an $81,979,980 budget consisting of $41,565,314 for municipal services and $40,414,666 for New London Public Schools. The budget would increase the mill rate—or tax per $1,000 of assessed value—from 26.6 to 27.5, or 3.38 percent.

Councilors voted along the same lines on April 29 to approve the first reading of the budget. The Council will meet for a third and final reading on the budget at 7 p.m. on Tuesday at City Hall.

Sprecace proposal

Councilor Adam Sprecace made his third alternate budget proposal. He said he would not be able to support a tax increase with reduced municipal services, but that he felt his proposal would increase taxes while retaining services. Sprecace said this proposal included the same bottom line, revenues, and mill rate but distributed the funding differently among departments.

Sprecace said the largest internal savings came from removing a contingency fund, reducing the school budget by $397,261, reducing employee expenses by $143,408, and reducing insurance costs by $127,130. Most of the funding—$728,838—would be redistributed to the New London Police Department.

“It does concede some numbers that were previously assumed, namely $350,000 in health insurance,” said Sprecace.

Councilor John Maynard was critical of the Finance Department in supporting Sprecace’s proposal, saying he thought the city’s figures have been inconsistent.

“To me, the numbers are good and consistent, and they’re more consistent than the numbers I’ve seen for the past year and a half,” Maynard said of Sprecace’s budget.

Councilor Anthony Nolan, who previously said he could support a prior Sprecace proposal if he received more assurances that the estimates were sound, said he met with both Sprecace and Finance Director Jeff Smith on the matter. Nolan said he would not be able to support a reduction in the school budget or Sprecace’s estimates in employee or insurance costs.

“There are numerous things that Councilor Sprecace is requesting to do that are just not possible,” said Nolan.

Council President Michael Passero was also opposed to Sprecace’s estimates in these areas, saying a cut to the school budget would send the wrong message as the district develops a school reform plan.

“I do not feel that I could support cutting that contribution by another $400,000 with everything that’s going on now,” Passero said.

A vote on an amendment to approve Sprecace’s figures failed 4-3, with Passero, Nolan, Council President Pro Tempore Wade Hyslop, and Councilor Donald Macrino opposed. Sprecace, Maynard, and Councilor Marie Friess-McSparran were in favor.

Majority proposal

The previously approved proposal identified an additional $1,735,029 in revenue and savings to be figured into Mayor Daryl Finizio’s budget proposal, namely through $788,789 in state revenue restored by the Connecticut General Assembly and a $400,000 reduction in the school budget to reduce their budget from a 2.5 percent increase over 2013 levels to a 1.5 percent increase.

This money was used to replenish several budgets that were cut under Finizio’s budget, including the New London Fire Department, Department of Public Works, Public Library of New London, Senior Center, and Recreation Department. The Council approved the municipal budget and school budget in two 4-3 votes.

Sprecace, who opposed the school budget, said he did not think the budget shared enough details on how the funds will be allocated within the district. Macrino and Nolan supported the school budget but said they agreed with Sprecace’s concern.

“I believe there should have been greater backup information,” said Macrino.

Police concerns

The proposal restored $500,000 to the New London Police Department budget, which remains about $900,000 below the 2013 funding level. Chief Margaret Ackley previously warned that 20 layoffs would be necessary to meet the budget proposed by Finizio, and that the Council proposal would require removing five officers from each shift for a total of 15 layoffs.

Finizio said Monday that the administration is looking for ways to avoid layoffs in the department, including additional revenues and the possibility of officers retiring or taking jobs elsewhere. He said if layoffs are necessary, they would not go into effect until halfway through the 2014 fiscal year to allow time to find other funds of internal savings.

“I cannot at this point say they could be completely avoided,” he said. “We’d have to make the determination at that time. There are too many variables.”

Finizio also said he disagreed with estimates in Sprecace's initial budget proposal and that he thought the city would risk running a deficit if it was approved. He said he would approve the budget as it stood after its first reading, but would veto it if Sprecace's proposal is adopted or if further reductions are made to the school budget.

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