New Castle County Executive Paul Clark (D) delivered his first budget address as county executive, touting it as a plan that produces a balanced 2012 budget “the old fashioned way: controlling spending and living within our means.”
In a speech that lasted just over 20 minutes, Clark outlined a $164 million operating plan that plugs a $10.1 million deficit without a property tax increase, and without dipping into the county’s reserves. He also does not propose to layoff any county workers. And in a new initiative, Clark proposes creating a county economic development fund, using proceeds from the county’s real estate transfer tax.
But, that doesn’t mean the New Castle County executive’s plan is without some pain.
“I wish I could stand here and tell you that the past several years of belt-tightening and spending cuts and tax increases have solved our deficit problems. But I cannot. We remain in a structural deficit,” said Clark. “I wish I could stand here and tell you that in the four months since I took office, I found a magic bullet. But I cannot. There is no magic bullet. There are no gimmicks, no tricks, no smoke and mirrors to balance our budget.”
2012 New Castle County Budget Address
Excerpts from New Castle County Executive Paul Clark’s Budget Address
In one of his most highly contested proposals, Clark is seeking concessions from county unions when they negotiate their new contracts later this year. To avoid layoffs, for the past two years county workers unions have agreed to 5 percent salary rollbacks; these contracts expire June 30. Clark says the next contracts, which will take effect July 1, need to include concessions in salary or benefits that total $2.4 million, or about 2.5 percent. Clark says he hopes the county and unions can do that without layoffs.
“I’d love to make them whole, but I can’t,” said Clark. “We need some money back to make this work.”
The plan was immediately met with concern by union leaders who attended Clark’s budget address.
“When it comes to taking a cut for a third year in a row, it going to be a be a tough one to sell,” said AFSCME local 1607 president Mark Klinfelter, whose union represents clerical and technical workers.
Local 3109 President Richard Krett says his union, which is made up county managers and supervisors, is willing to sit down and negotiate, but points out “everyone is feeling the pinch including our [members]. As costs go up, these same costs go up for our members.”
Clark’s request for union salary concessions was met with mixed reaction from County Council members.
Council president Tom Kovach (R) previously said he’d be disappointed if Clark did not propose keeping the current five percent salary rollback in place. After the county executive’s address, he said asking for 2.5 percent worth of salary concessions was not just disappointing, but using it as a starting point “handicaps the process.”
“If you keep as a basic premise the five percent rollback and then go through the budget process and you do have money available for employees, then it’s appropriate. Then you raise the salaries or put back into place step increases,” said Kovach.
Councilman Tim Sheldon (D) supports Clark’s plan for worker concessions.
“There’s two ways to look at this,” said Sheldon. “I look at it as you’re not taking a five percent cut, you’re taking a two and a half percent cut. Or you can look at it as you’re getting a 2.5 percent raise over last year.”
2012 New Castle County Budget Address
Reaction to New Castle County Executive Paul Clark’s Budget Address
Clark says his administration has worked hard to find savings through spending cuts in the four months since he took office. In addition to the austerity measures he previously announced, Clark announced other cuts. They include eliminating 25 vacant positions and defunding 51 others to save $4.7 million, and reducing overtime and freezing part-time employees pay to trim $1 million. In all, Clark says his budget eliminates one out of every eight dollars in non-personnel spending and comes in $600,000 lower than the current year’s budget. Clark says his plan also keeps the county from tapping its reserve, which stand at $44.3 million.
“[Tapping the reserve] would place would place our Triple A bond rating in jeopardy, weaken the cushion that is helping us absorb the body blows of this economy, and bring us closer to the point of insolvency,” said Clark.
“I was pleasantly surprised [that the reserves were left untouched],” said Sheldon.
But not everyone believes the budget knife has cut deep enough.
“They continue to say they’re cutting costs. They’re doing what they can to save, pinching pennies. It’s not enough.” said Klinfelter.
“I would encourage the administration to be more aggressive, to look at further cuts,” said Kovach. He advocates consolidating functions between county departments where possible and looking for ways to consolidate any redundancies between state, county and municipal governments.
Clark concedes he’s not finished.
“We think there is more. We’ve only been [in office] four months. You’re peeling an onion,” said Clark. “Sometimes it takes the economy getting even worse to make that tough decision.”
Clark’s budget address also called for a $69 million sewer fund budget. Clark says a 3.9 percent fee increase is needed to help close a five million dollar gap between revenues and expenses; that will cost the average homeowner about ten dollars a year
Clark’s proposed capital budget is $46 million dollars. Over 80 percent of that is dedicated to updating an aging sewer infrastructure in northern New Castle County. There’s also allocations for upgrading the county’s 911 communications system, and renovating libraries in Bear and Claymont. Other projects have been deferred for a year, including a building a regional library south of the C&D Canal, and completing Glasgow Park amenities. The proposed budget for parkland acquisition has been trimmed from $4 million to $500,000.
Clark’s budget proposal now heads to New Castle County Council for six weeks of hearings before Council votes on a final budget.
“I don’t predict major changes because I sat there with that council [as county council president]. I know what their interests are. They are not interested raising taxes and they’re not interested in cutting public safety and those things were [addressed in this budget],” said Clark.
