Budget woes due to virus come to a head in Greenwich
GREENWICH — As the Board of Estimate and Taxation prepares for Monday’s vote on the proposed $459 million budget municipal budget for 2020-21, the member all agree on one thing: There will have to be cuts.
But where the cuts will be and how deep they will go is still to be determined as the finance board operates in the new economic reality created by the coronavirus.
At last week’s public hearing on the proposed budget, several members of the Representative Town Meeting, as well as some from the public, advocated for steep cuts, particularly in the town’s capital budget.
Some called for the town’s mill rate — which would increase 1.35 percent in the budget version approved in early March by the BET Budget Committee — to be reduced because of the economic crisis.
“Everyone recognizes that the world has changed as a result of the coronavirus,” BET member David Weisbrod said. “We all understand that, whatever your persuasion. We’re all talking about cuts.”
First Selectman Fred Camillo has acknowledged that cuts are needed, saying the town will reduce the budget in order to avoid layoffs or furloughs of town employees.
“We are going over the budget to get to where we can cut it enough so we can deliver a very low tax rate to the citizens at a time when they could really use it,” Camillo said. “We will look for any and all savings possible.”
The BET will identify and approve the cuts during its decision meeting, which begins at 9 a.m. Monday. This past Thursday, the members met in a budget workshop to begin the work, but no cuts or any motions for cuts have yet been made.
Both the majority Republican BET caucus and minority Democrats have put together lists of possible cuts as the town faces the potential of millions in lost revenue due to the virus outbreak. The losses include less money coming in from conveyance taxes from home sales, a lack o new building permits, and lost revenue in the town’s Parks and Recreation Department as well as the potential loss of state grants.
Republicans estimate there could be as much as $5.9 million in lost revenue; Democrats put the amount at $5.7 million. In addition to cuts, the BET could use more of the town’s fund balance, which serves as a reserve.
BET Chair Michael Mason said the idea is to reduce the growth of town spending at a time of crisis.
“We only have so many tools,” Mason said. “We only have so much we can do. But when I hear the word ‘can’t’ as in ‘The Board of Education or the police department can’t do something’ that’s unacceptable. They can all attempt to do something.”
Mason said he will look to reduce town departments, including the Board of Education, back to the levels they have in the current fiscal year budget.
The deepest cuts are expected in the town’s capital budget, with some projects postponed to future years. The Democrats are expected to propose reducing the capital budget from $73 million to $53 million; Republicans would cut it to to $38 million.
Both Mason and BET member Leslie Moriarty, leader of the Democratic caucus, said the lists of project cuts had not yet been finalized. But specific motions will be made Monday.
BET member Andy Duus said there should be “a pause” on some capital spending, and BET Vice Chair Karen Fassuliotis agreed. Duus argued for steeper cuts in the capital budget because the national economic recovery will likely be difficult.
“The cut is being driven by what is going to be actionable over the next year,” Duus said. “I wish we were in a V-shaped curve (for economic recovery) but I think we’re in a U-shaped curve with lots of drags in getting things done. I think the $35 million cut to capital is more realistic.”
Duus said the cuts are not “dire” but “prudent” — because many of the capital projects couldn’t be completed in the next year anyway.
Mason said he preferred to cut more in capital spending than to take more from the town’s fund balance.
“These projects are just a judgment call about what could be deferred a half year, a whole year or whatever the case may be,” he said.
According to Moriarty, the Democrats
want to reduce the town’s operating costs with $2 million in cuts to town department expenses, including a $700,000 cut in the school budget.
The budget presented by Camillo in January and approved by the Budget Committee in March, reflect a different reality, BET members said.
Some Democrats expressed concern that if the cuts go too deep, they could have an impact on needed services, especially when it comes to the school budget.
“This is not about cutting a number on a spreadsheet. It’s about cutting services that are provided to the people of Greenwich,” Weisbrod said. “We all recognize we have to do that, but we need to understand what the least damaging way there is to do that.”
Despite their differences, the BET members said they are unified in their purpose going into Monday’s meeting.
“It’s remarkable,” Weisbrod said. “(Republicans) went in one direction and (Democrats) went in another, but we came out with something that’s incredibly comparable. I believe that is a testament to the brainpower of this BET.”
Mason said he agreed with Weisbrod’s sentiment.
“I think the BET is 12 people with a lot of passion and care for the town,” Mason said. “In my words, I think the town has to make some judgment decisions on the economic times and what we think is not just going to be a part of fiscal 21 but also fiscal 22, 23 and on.”
The meeting will not include a public hearing, but the public can watch via Zoom by visiting greenwichct.gov/virtualBET.