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Indy Finance 102

My colleague Jon Murray today in the Indianapolis Star spells out Mayor Greg Ballard’s first step toward closing the city’s estimated $30-$65 million budget shortfall.  It includes budget cuts, revenue increases and spending freezes.

According to Murray the Ballard’s highlights of the plan include the following…

  • Postponing scheduled 3% raises for IMPD and IFD
  • Elimination a city-county homestead tax credit (averaging $22 annually per household)
  • Capturing $21 million from recent state payments
  • Capturing another $10 million from the downtown TIF district

More details will be available Monday and Council Democrats are meeting this afternoon to discuss a strategy.

The way I look at the city budget is this, I think this is a good starting point for a discussion.  And for those who want to play critic, you are entitled, but once again, please do everyone a favor, especially yourself, and bring up concrete solutions.

And I will take care of your first suggestion; rescind the pay raises for the 25th floor, done.  Now go find another $64,850,000 and then you will have really accomplished something.  And before I forget, public safety is 80% of your budget and before you start dissolving TIF districts you might want to check and make sure their bonds are paid off.

 

  • Pascal

    http://advanceindiana.com/   A good analysis.  The idea of TIF districts as piggybanks for political sorts to plunder is worth review.  When conceived for Indiana a feature people liked was getting money away from black holes of spending like schools and city council stupidities.  Both entities had little fiscal sense (still don’t).  

  • Ramon

    TIFs have to be changed if they are to continue.  They are just slush funds for the mayor now.  When the project is over, the TIF stops.  Plain and simple.     I would not object to losing a small portion of my homestead exemption if it were to go to public safety.  As long as the mayor is giving outrageous raises to his political buddies,  I don’t like it.   If firefighters, police officers and homeowners are to sacrifice, then there is no way to justify the money grab by Ballard’s top administrative people.

  • Indy4U2C

    OK, is it hypocritical for the Mayor to give his personal staff obscene and flippant pay raises of 30%, that amount to some getting $20,000 or $30,000 increase in pay this year and at the same time telling our “Public Safety Heros” that they can’t have the 3% pay raise they were promised? 

    Hmmmmm, many taxPAYERS in Indianapolis don’t make as much as the pay raise their Mayor gave to his top staff!

    -Certainly make it hard to take the Mayor seriously….I wonder if he has hired Bart Peterson as a personal consultant?

  • Dave

    Point of order or clarification; weren’t homestead credits set to be phased out / eliminated, when the hedge-islature passed the “caps?”

  • Marksmall2001

    Abdul, Off-topic and a point w/which others might disagree. Also I am no wizard (my websie in point) but could you make past articles/archives more accessible? Like maybe have a block of past blogs listed, title-by-title. Maybe I have missed a tab or something. I didn’t take Computer Science at DePauw (but, in 1976, only would have learned FORTRAN). Thanks.

  • Christine Scales

    In allocating public safety funding resources, we elected officials need to remind ourselves that the focus should not just be on the dollar amounts to be spent, but on the services to be provided.  There are some resources that must take priority, particularly when the decisions can put the public and front line public safety personnel at greater risk.Below are some questions I have raised, as well as recommendations I have made to administration officials regarding possible changes in IFD spending.  These suggestions were given to me by both current and retired IFD personnel of varying ranks.I did not receive any response to these recommendations.  I am putting them forth for consideration.Look into the costs of all the staff cars used by IFD (and other) administration officials who aren’t on call after completion of their work shifts.

    Consider eliminating: All shift arson investigators. Train Battalion Chiefs and Executive Officers in cause and origin findings.  Most already have that training.

    Train Battalion Executive officers on what to say or not to say when dealing with the media.  This has been done in the past. Use PIO’s in other needed capacities.

    Ask why during these lean budget times, were 2 additional PIO positions and 3 newly created arson shift personnel added?

    Eliminate the staffed Tanker in Franklin Twshp. Put the tanker at a dual company and on fire runs when a tanker is needed, someone from the ladder or engine could respond with it.  That is what is currently being done with Tac Units. Numbers show that Franklin  tanker ran 45 times last year, 12 working fires, and probably used on about 4.  These numbers don’t merit staffing it. Again, a laddertruck positioned at a station in a high hazard area of the community was removed from its location, though its run history is 800-900/yr.

    Eliminate 2 positions in training.  When training is needed for a recruit class or shift training, use on duty personnel that are already being paid an extra $1000.00/yr to do just that.  It will then be a cost per detail, but not an ongoing annual cost.

    Why have several firefighters(5?) been moved to Homeland Security, with their salaries still being paid for out of the IFD budget?

    How is the budget helped by adding all these newly created positions and shift additions, along with the hiring of a new recruit class of anywhere from 15-30?  It is rumored there will be a large number of IFD retirees next year.  Many of the anticipated retirees  appear to be those in administration, with higher salaries taking human resource pressures off the budget. Has the anticipated financial impact of these high level retirees in 2013 been taken into account in crafting this year’s IFD budget?

    The other question I have, is regarding Laddertrucks 22,14, and 10, along with 31.  LT 22 is located just 1.5 miles driving distance from 10, with LT14  located between the two of them.  LT 31 is located 2 miles due north of LT22.  While it is possible that each of these LT’s have heavy run loads, how is it justifiable for 4LT’s to be placed so closely together, but the northside with more commercial properties, schools hospitals, nursing homes, densely populated apartment buildings, etc is to be satisfied with LT 6 and 9′s 5+ mile distance from one another?  Northside properties contribute more to the tax revenue base, so protecting them should be in the city’s economic interest, aside from other safety principles.  The 4 closely located LT’s can probably respond to each other’s coverage areas in about 2 minutes, at most 4.  Northside residents are supposed to be satisfied with a dubious 8 minute response time.  That hasn’t been happening.Busy Laddertruck 21 was repositioned to a City of Lawrence fire station which historically has only about 300 runs/yr.  It was said that the laddertruck at the City of Lawrence station was incurring costly maintenance repairs.  Where is that laddertruck now and how is it being used?  Is the city getting whatever money it can by selling it to another municipality in an “as is” condition?The goal of  Township/IFD consolidation of fire services is to find efficiencies, reduce service redundancy and overlapping coverage of human resources and apparatus.  There is a “best practices” protocol for making these decisions that have been put forth by nationally recognized fire service organizations and agencies.  Communicating with the public-the schools, businesses and homeowners  to be affected by the changes, and working with elected officials representing the area, as well as seeking input from the frontline firefighters serving an affected coverage area, is always advocated before such decisions are to be implemented.There are other suggested cuts that might require more indepth investigation as to consequences, and require strong political will.  If those were to be considered, along with the suggestions outlined above, it has been estimated, that approximately $3.5 million  could be saved in the IFD budget.

  • Christine Scales

    More thoughts on possible budget  revenue generators or savings:Savings in DPW hourly and overtime wages:In past years, Public Works Committee members have often asked why ex-offenders or those assigned community service hours by the courts couldn’t supply needed clean-up of the city’s landscape following a major event.  Use of such resources could provide dramatic reductions in higher hourly wage and overtime costs of DPW employees.  Presently, this can’t be considered as the city’s union contract with AFSCME only allows for union members to undertake such tasks. If union contracts with the city are open to renegotiation, consideration should be given to opening discussion on this one area of the contract between DPW and AFSCME.The city should charge special events organizers costs for providing needed additional security protection and traffic management.  Many other major cities and cities of equivalent size to Indianapolis are already doing this. This would cut down Public Safety overtime hours, generate revenue, free up law enforcement officers to protect other areas of the city, rather than having officers needed in outlying areas reassigned to Downtown. The city could consider bidding out contracts to security firms, or rotate use of local, Marion County security firms on an as needed basis.  The city could take a small percentage of the fees engendered from the private security firms.The city should not dismiss Sheriff Layton’s suggestions for reconsideration of law enforcement responsibilities between IMPD and the Sheriff’s department without first having thoroughly examined the potential cost savings and administrative efficiencies.  Allow all affected parties to come together to discuss which portions of the Sheriff’s plan make sense and which would be deal breakers.  For example, the Sheriff already has some responsibilities having to do with sex and violent offenders. Complete oversight of this law enforcement duty, as opposed to dividing the tasks with IMPD could lead to improved processes, at a lower cost, and free up more IMPD officers to arrest all law breakers.Continue to work with officials from the State and healthcare providers to more specifically define billing and payment responsibilities of arrestees needing immediate medical attention.  This newly shifted cost  of millions of dollars from Wishard to the Sheriff’s office has greatly contributed to the Sheriff’s budget costs and should most likely be a shared cost among several government agencies.Consolidate responsibilities of the city’s public information officers.  Can public relations duties be fulfilled by fewer PIO’s covering more areas and agencies?  In needs vs budget considerations, is a PIO as needed as an LEO?Reduce duties of the Public Safety Director and the resultant costs of its administrative office.  Until Indiana State Law can be changed to eliminate the required position within the city, drastically reduce the Public Safety Director’s responsibilities and salary.  In these dire budget times, severely limit the amount of city-county budget dollars spent on travel and outside consultants.As always, I am available to discuss these suggestions with any interested parties.

  • Abdul

     Hey,

    I will give you a buzz to chat on your budget suggestions.  Thanks for offering up ideas.  I think you are the first member of the CCC to do so.

  • Marco

    Keep the fuel surcharge on IMPD. Only $750,000 or so per year considering how many officers now live out of county, but it’s better than nothing. You’ll get a little more by making officers pay to work part-time as well.  Also, any firefighter that does window tint, builds cabinets, does taxes, sells real estate, etc. on the clock should be paying a surcharge as well.  I know that’s ghost employment but let’s be realistic, nobody’s going to file charges on a firefighter.  And the Star saying IMPD has had a 14% pay raise since 2008 is not even remotely right.

    I think you have to look at eliminating the IFD Kelly Day (if we’re playing the parity card.)  By my math (working 1/3 days of the year X 1/7 of those days being Kelly Days X approx. 1000 firefighters X $60,000/yr) rounding down you save between $12,000,000 and $18,000,000 (depending on paying straight or OT) per year by not having to hire additional IFD to make up the manpower shortage and/or not having to pay overtime.  Which brings me to overtime.  Eliminate IFD’s unlimited overtime.  IFD doesn’t have a take-home car policy, which means if there’s a car laying around their chief can give it to whomever he likes because they have no rules governing them.  Institute a take-home car policy for IFD that states that they get NO take-home cars.

    I’m not sure why, but in my neighborhood whenever there’s a drunk passed out on the street you get two ambulances, a ladder truck, etc. showing up.  Stop the run inflation.  It’s the same thing Frank Anderson and Jack Cottey used to do.  IMPD doesn’t do it anymore despite their brass pushing it for the past few years.

    Cut MCSD back to their immediate post-merger levels.  They don’t have a road patrol function anymore so stop playing pattycake with Layton.  MCSD’s budget was about 80% of IPD’s before the merger.  That was when they had much more responsibility within the city.  Now they don’t because IMPD has absorbed their costs, but their budget hasn’t gone down.  Huh?  No savings, but a duplication of services.  I won’t get into the nitty gritty of why Layton is giving non law-enforcement personnel take-home cars, we need crossing guards on Market Street, etc.  In short, why has MCSD seen, including the proposed 2013 numbers, a nearly 20% increase since 2009 despite the fact that they are still running skeleton crews on the essential services they provide?

    You have almost 10% of IMPD slated to retire in the next 18 months.  With salary and benefits we’ll round down and say that for every 14 officers that walk out the door the city is saving $1,000,000 or so.  Well with 150 or so planning on leaving here before too long, where’s that extra $10,000,000 or so going to go?

    I understand this is all within public safety and I haven’t even touched on other non-essential city services.  But let’s play the game of averages and say that half of IMPD that’s slated for retirement retires on June 30 (those not in the DROP will go much quicker but I’ll be even about it.)  That’s $75,000 or so in pay and benefits X 75 officers X half the year and you get almost $3,000,000.

    This is only off the top of my head, but add that $3,000,000 to the fuel surcharge, the work-on-duty surcharge, the Kelly Day elimination, and eliminating Layton’s budget raises.  I come up with $35,000,000 to $40,000,000.  For starters.  Oh, and hire back all the grant writers that Straub fired because he didn’t think he needed them.  And I won’t even get started on the department of public safety.

  • http://www.thePoliPit.com JednaVira

     Hate to bring it up again, or even say “I told you so,” but wasn’t the Peterson/Democrat merger of IMPD/MCSD suppose to save millions?  And yet we have a CCC representative on here suggesting we need additional “merging” of services.  Someone needs to explain why the merger did not save money, starting with any CCC representatives that voted for it.  It was a colossal waste of time and money and someone should be held to account for the flat out lies.  (www.thePoliPit.com).  

  • Southsider

    Back before the merger (Jan ’07) there was a committee of some sort that went to cities that had merged departments ( Charlotte, Nashville, Louisville, I think) and I read (Star??) or heard (Abdul or Garrison??)  that if your merging to save money…don’t.

  • Indy4U2C

    Councilor Scales:

    Current Indiana Law allows for the Consolidated City to assign any responsibility to the Public Safety Department as the City finds appropriate, to include ELIMINATION!

    IC 36-3-4-23
    City-county legislative body;
    creation of agencies; transfer of agency powers
    Sec. 23. (a) The
    city-county legislative body may, by ordinance:
    (1) create or
    terminate departments, divisions, offices, community councils, and other
    agencies of the consolidated city; and
    (2) transfer to or from those
    agencies any powers, duties, functions, or obligations.
    (b) The powers
    granted by subsection (a) may not be applied to:
    (1) the department
    of public utilities of the consolidated city;
    (2) offices established
    by the Constitution of Indiana; or
    (3) agencies of municipal
    corporations other than the consolidated city.

  • Indy4U2C

    …and the CCC needs to tell Layton to do his job, and quit playing policeman!  Sorry, but I saw nowhere in his job description the enforcement of traffic law.  Our city is now defending (a loser) law suit against the Sheriff for having special deputies exceed their authority and enforcing traffic law. 

    I wish the CCC would pass an ordinance requiring a need and approval jusitification for any Sheriff take-home vehicles.  Since he does NOT respond to any emergency situations, it is hard to justify a take-home car for his employees.

  • Steved608

    The spin that eliminating the Homestead Credi twill cost the average property tax bill to increase less that $30.00 is a total falsehood. Looking at my 2012 proterty tax statement, the homestead credit is $45,000 off assessed value. At a Perry Township tax rate of 2.8713 that is $1292.00 per year in increased property taxes.

    Screw the mayor and his cronies. Quit cheerleading Abdul, the pay increases for his buddies needs to be eliminated before anything is addressed on the budget shortfall. The state picked up the police and fire pensions from the city debt, Peterson raised the local option tax 65% for these pensions to cover this amount. The last I read the pension debt was 54 million a year that the city is not paying now, so where is the shortfall coming from? Oh yea it’s the economy. Well in a a bad economy you don’t give massive pay raises to your staff, ask the police and firefighters to give up their raises and then screw the property taxpayers.

    Yea the staff pay raises were a fraction of the budget and I am totally sure that they were money saved elsewhere.

    If the Democrats stone wall this budget proposal I can only say God bless you Democrats.

  • Abdul

     The elimination is the local portion of the homestead.  You are reading your tax bill incorrectly.

  • Dave

    OK, got it, the county’s homestead remained in place.  So eliminating that is unfortunately an increase in the COG (cost of government); tax, fee or whatever one chooses to call it.

  • Joe

    That’s why he votes democrat. Limitted understanding.

  • M Theory

    How is that Ballard can find unlimited funds for sports bailouts and gifts to real estate developers, yet is touching our property taxes when he promised never to do so?  

    In fact, I recall him signing a pledge stating he was in favor of the complete elimination of property tax. 
     

  • Guest2

    Your good friend failed to tell your this regarding the budget.  Health care insurance costs for IMPD/IFD will be increasing between 7%-9% (civilians %4-%6 increase) for 2013 Budget. 

    But this is the kicker that you won’t hear fom the Mayor….For the 2014 budget (2 years from now), there is a shortfall/gap of between $10million and $20 million that is not being addressed in the 2013 budget. A year from now, we will be in the same boat.  But everyone will blame the economy and not the true culprit….PROPERTY TAX CAPS..You heard it hear first because the Mayor is speaking way too fast…for a reason.