NORTHAMPTON — Mayor David Narkewicz said he has good news and bad news when it comes to the city’s budget for the upcoming fiscal year.
The good news? Reserves built up through his fiscal stability plan stand at $2.9 million and none of that money is required to balance his spending plan for the next fiscal year, which begins July 1. The bad news is that next year will likely be different.
“The good news is we’re not going off the cliff,” he said Tuesday. “The bad news is there’s still a cliff.”
If things don’t change with state aid and new revenues, those reserves will be depleted by the end of fiscal 2020, necessitating another override or a considerable cut in services, Narkewicz said.
“That’s kind of the cautionary note in this budget,” he said. “An override — it’s something I think about every day. I want to avoid that, obviously.”
Narkewicz delivered his proposed $109.6 million budget to the City Council and city clerk on Tuesday, as is required by the city’s charter. The council must approve the budget by June 30.
The spending plan reflects an increase of approximately 3 percent over the current year’s budget.
Education spending — $36.5 million between the city’s two school districts — accounts for the largest expenditure in the budget. School spending also represents the largest increase from the current year’s budget, a rise of about $1.4 million.
Narkewicz said charter school reimbursement, which accounts for about $2 million each year in the city budget, is an issue. He said state leaders mandate that municipalities pay the charter schools but continue to underfund the reimbursement account.
“We’ll be under-reimbursed by $149,568,” he said. “That’s seven (educational support professionals).”
Narkewicz used the comparison because Superintendent John Provost’s overhaul of special education at the elementary level includes eliminating some ESP positions in order to bring more special education teachers to the schools.
Provost said he just discovered Wednesday the state won’t be providing any additional assistance, and so he’s thankful to the city for picking up the tab.
“I believe it is a very solid budget that will allow us to move teaching and learning in the district forward,” he said. “I’m very grateful to the city for its support of the public schools.”
Narkewicz said the looming fiscal cliff he described was a talking point in collective bargaining negotiations with employees.
“We’re trying to be really upfront with our employees. I appreciate that our employees understand that,” he said. “We’re really just trying to maintain the services we have.”
Among the biggest challenges Narkewicz says the city faces: a drop-off in state aid compounded by growing fixed costs and a cap on how much the city is allowed to generate under Proposition 2½. He said a continuous point of frustration for him is that the governor and some legislators vow not to increase taxes in the commonwealth, but then by not fully funding municipalities they instead force local leaders to do so to maintain a level-services budget.
“It’s putting more and more pressure on local revenue,” he said, calling local taxes and fees “a far more regressive form of taxation” than those imposed at the state level. “We would like them to send more of our money back to us.”
Health insurance and retirement for city employees — $16.8 million combined — remains a large portion of the budget, as does $5.4 million in debt service to pay down projects, the mayor said.
The Department of Public Works budget is about $3 million, while that of public safety is about $13 million.
Police Chief Jody Kasper said she tries not to ask for more than the department needs in light of the current financial climate.
“I didn’t ask for any bells and whistles — I asked for what I thought we needed to keep the city running. That’s what I asked for and that’s what I got,” she said. “It’s a practical and thoughtful budget.”
In her first budget with the city, DPW Director Donna LaScaleia is proposing some reorganization in her department. She added two new full-time parks positions in the budget, the cost of which is offset by the fact the department will no longer hire temporary staff to do the same work.
While Narkewicz said he has worked to keep expenditures to a minimum, he said the budget reflects a new item: funding for the new senior transportation program.
“We’re really committed to this program, which is going to provide greater mobility for seniors,” he said.
The budget also includes a merger of two city information technology departments. Previously, the school system had its own IT department, but Narkewicz said he and Provost decided to merge them in the name of efficiency and cost reduction.
Narkewicz said his office is also launching a new online viewing platform, which residents can use to view the budget and track their tax dollars.
“We think it’s a great addition,” he said while demonstrating how residents can easily see the macro version of the budget or dive into line items at their leisure. “I hope this lets people look at it in those terms, ‘What am I getting for my tax dollars?’”
Those wishing to view the proposed budget in person can read it in the city clerk’s office, in Forbes Library or at the Lilly Library in Florence.
A public hearing to discuss the budget with department heads is scheduled for Tuesday at 7 p.m. in the Council Chambers of the Puchalski Municipal Building. There will also be a City Council hearing at 7:05 p.m. on June 1 to hear public comment on the budget in advance of the council’s first vote on the document.
Narkewicz said he’s hoping more people get involved in the budget process this year, as it’s more than just numbers.
“It represents our collective values,” he said.
Amanda Drane can be contacted at adrane@gazettenet.com.