Minutes 03/18/1997 - Laserfiche WebLink

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Macb~ i8, 1997 should therefore never be used to fund items of an operational nature with recurring costs. The current budget proposes use of $1.5 million of fund balance as a revenue source in the Capital Improvement for funding one-time capital needs. This use fits well with City Council's desire to begin to reduce debt funding of capital projects. We are able to invest in our community without negatively impacting our cash flow or our ability to address unanticipated emergency items. EDUCATION EducatioQ and ~the Schoo system are vital to the health of the City and' continue to be a pdoritY: The needs of the system must be evaluated in relation to the total needs for the City. While the amount of City contribution to education is important, overall funding trends must be reviewed to clearly understand the overall financial picture. Currently the school system represents 43% of the total City budget. Since 1991, funding of the school operating fund has increased 31% while city revenues have increased only 17% during the same period. Utilizing a portion of the revenue growth for salary increases has been a priodty for both the city and the school system as our employees are our most valuable resource. Since 1992, school employee salary increases have exceeded those of public safety employees by more than 4%; 14.75% for school employees and 10.5% for public safety employees. It is readily acknowledged that the school system could spend more money than is available to them. The same is true of the public safety department which is responsible for protecting life and property, and for virtually every municipal operation from parks to economic development. Therefore, I am recommending ~n increase in the City's support for school funding of $500,000, which represents a 2% increase in local appropriation and reverses the trend of decreased or level fundiCg for education. This amount, when combined with state funding, will afford a pay raise for school employees on a par with that recommended in this budget for City employees. This increase is the most that can be accommodated within this budget recommendation given the revenues available and the needs that have been p!resented. If it became necessary to fund the entire request of the School Board without reducing the City's budget request, an 11 cent increase in the real estate tax Would be required. This increase of 8% in the real estate rate is not viable, neither is it prudent for me to recommend the stripping of essential resources from budgets of city operations that provide equally essential services to accommodate the wants of one agency. The challenge I would issue to the school system is identical to that which has been issued to City departments. TheI first challenge is always a management challenge: How do we find better ways to do business with enhanced efficiency and effectiveness, w~thout seeking additiona funds first? When all other methods 'have failed, then; and only then, consider additional dollars as part of the solution. Given the historical data on total funding, education has fared better than any other Portsmouth municipal operation.