By The Numbers: Michael Passero 2014 Budget Proposal

At Monday’s Finance Committee meeting, both Council President Michael Passero and Councilor Adam Sprecace presented proposals to offset cuts to the 2014 fiscal year budget made under Mayor Daryl Finizio’s budget proposal. Today we’re presenting both of these proposals in full. 

Finizio’s budget of $81,016,213 includes the Board of Education’s requested 2.5 percent increase for the New London Public Schools, bringing that budget to $40,814,666  The municipal expenditures are reduced by 2.5 percent to $40,201,547. The mill rate—or tax per $1,000 of assessed value—increases 3.09 percent in this proposal, from 26.6 to 27.42.

The budget has raised concerns due to several cuts that department heads have said will result in layoffs or reduced services, including a $1.4 million cut to the New London Police Department, $500,000 cuts to both the New London Fire Department and Department of Public Works, 50 percent cuts to the Public Library of New London and Recreation Department, and the defunding of the Senior Center. Finizio has said these reductions were necessary based on anticipated revenue shortfalls from the state and other sources.

The Finance Committee voted 2-1 to have the Finance Department reform the budget based on the numbers developed by Passero and Finance Director Jeff Smith. These anticipate more state grants due to some funding restorations to Gov. Dannel Malloy’s budget proposal by the Connecticut General Assembly, but also offer more conservative estimates for savings within the budget than Sprecace's proposal.

The Finance Committee will complete its review of the budget at a 5 p.m. meeting at City Hall tonight, followed by a 7 p.m. meeting of the full Council to vote on a first reading of the budget.

Funding sources

Passero’s proposal include an additional $788,789 in state grants due to the following state budget adjustments by the Connecticut General Assembly:

• An increase in Pequot casino revenue sharing by $1,238,221, from $233,121 to $1,471,342 
  
• An increase in PILOT (payment in lieu of taxes) revenue for state-owned property from zero to $326,198 
  
• A reduction in PILOT funds for colleges and hospitals by $446,863, from $4,702,111 to $4,255,248 
  
• A reduction in Education Cost Sharing revenue by $286,345, from $23,324,453 to $23,038,108 
  
• A reduction in non-public school transportation revenue by $42,422, from $53,028 to $10,606 
  

• Reducing unemployment expenses by $458,640 
  
• Reducing the New London Public Schools budget increase to 1.5 percent for a savings of $400,000 
  
• An additional $50,000 in anticipated revenue from the Water Street Parking Garage 
  
• Reducing disability benefits by $37,600 
  

• New London Fire Department: a $350,000 increase, from $5,453,320 to $5,803,320 ($188,393 more than the 2013 budget) 
  
• Department of Public Works: a $350,000 increase, from $6,969,998 to $7,319,998 ($80,374 less than the 2013 budget) 
  
• Public Library of New London: a $250,000 increase, from $300,000 to $550,000 ($52,700 less than the 2013 budget) 
  
• Senior Center: a $229,400 increase, from $10,600 to $420,000 ($38,338 more than the 2013 budget) 
  
• Recreation Department: a $176,000 increase, from $224,000 to $400,000 ($40,868 more than the 2013 budget) 
  
• New London Youth Affairs: an $88,000 increase, from $12,600 to $100,600 ($36,966 more than the 2013 budget) 
  
• Office of Development and Planning: a $50,000 increase, from $330,071 to $380,071 ($19,271 less than the 2013 budget)