March 12, 2012 Vol. 4 Issue 3   


 

Schools Budget Task Force Gets to Work   

Earlier this month, I announced the formation of a Schools Accountability and Efficiency Review Task Force to review the school's budget request to the City. This action followed the Richmond School Board's action of sending me a request for an additional $24 million in funding for fiscal year 2013.

The Task Force began its work today reviewing this funding request and determining if there are ways to reduce spending through identifying efficiencies.

The money the City provides to the Schools operating budget is already the largest on-going appropriation for a single agency in the City's entire budget. But I want to be clear; the question isn't whether we fund $24 million extra for schools. The question is: what do we need to invest in schools to prepare our children to be competitive in the world economy? Are we making the right investments with the money and is the money going to the right places? I'm committed to spend what we need to get excellent results with education for our children, but first we need a comfort level on exactly what is happening with school spending.

The Task Force I've named is co-chaired by James W. Dyke, Jr., former Virginia Secretary of Education under Governor Douglas Wilder, and Eva Teig Hardy, former Virginia Secretary of Health and Human Resources under Governor Gerald Baliles. City Council President Kathy Graziano and Councilman Chris Hilbert will serve as ex-officio members of the Task Force.

Over the next 5-6 weeks, the commission will review the spending and operations of the school budget to identify areas for improvement, potential consolidations with the City, and other management practices to improve savings and lower the current budget gap. Some of these discussions have and continue to take place, but what this Task Force provides is a fresh look and the possibility of fresh ideas. The long-term plan is to develop strategies and initiatives that will inform us about where and how we can invest our education dollars to generate the maximum return on the investment in public education.

Stay tuned as I will keep you posted on the work and findings of the Task Force.   

Proposed FY 2013 Budget and Capital Improvement Program   

I recently presented my fourth City budget to Richmond City Council against the backdrop of continuing challenges associated with the national economy. We've continued to work to control costs without affecting core services, and my budget again contains no new taxes, nor does it propose reductions in core services, or employee layoffs or furloughs. Unfortunately, it also contains no raises or bonuses for our workforce. But the fact of the matter is that we cannot afford to provide raises without layoffs, and I've chosen to protect everyone's job first.

My budget amendments to the FY 2013 General Fund Budget total $780.9 million and the FY 2013 - FY 2017 Capital Improvement Program (CIP) totals $181.6 million for FY 2013 ($112.53 million, General Fund and $69.07 million, Public Utilities) and $851.96 million for the five year period ($343.22 million General Fund and $508.74 million, Public Utilities).

My proposed budgets are fiscally prudent in that they protect city residents from major increases in the cost of services; provide funding for our most vulnerable populations; invest in neighborhoods; protect the jobs of our workforce; and promote efficiency and savings to prepare for unforeseen emergencies and as a source of future investment.

My proposals also provide for investment in areas that will expand our tax base by leveraging our competitive advantages, such as the Commerce Road and Deepwater Terminal Road area near the Port of Richmond; the James River; Main Street Station, Shockoe Bottom and Shockoe Slip area; Boulevard around the Diamond; and the historic Landmark Theater.

Perhaps the boldest and most potentially catalytic are my proposals to transform public housing into mixed income communities anchored by high performing schools. These new communities will provide safe, healthy and economically diverse neighborhoods. Ultimately these will be communities where families have access to services, and where children have the support and resources to access a high quality education. I believe these things are achievable but they require dedication of resources, and full cooperation among residents, the elected and appointed officials of the City, the appointed commissioners and executives of the Richmond Redevelopment and Housing Authority, the elected and appointed officials of the Richmond Public Schools, and the business community. The bottom line is that Richmond cannot reach its full potential without addressing concentrated poverty and establishing an excellent public education system.

In summary, the General Fund Budget and Capital Improvements Program I am proposing:

• Protects basic services;
• Does not raise taxes;
• Preserves the workforce while paring it down through attrition and efficiencies;
• Expands services to youth and our most vulnerable populations;
• Invests in transformational projects that through partnerships will yield positive returns on investment in terms of both financial and human capital.

As I have said, we cannot tax or cut our way out of this economic downturn. What we must do is invest wisely and focus on rebuilding our tax base, and creating jobs for Richmonders. And specifically we must continue to invest in those areas that will yield the greatest economic, financial or social benefits in the long run.
    
To view my complete budget proposal or to view the video of my budget presentation to City Council, please click here.  

Go RAMS!

I hope that you will take time to share this budget-focused newsletter with others. But on one final note, I must acknowledge VCU's Colonial Athletic Association (CAA) Men's Basketball Tournament victory!  I believe I speak for the entire city of Richmond in wishing the VCU Rams much success in this year's NCAA Men's Basketball Tournament! Thank you to all of the fans and schools for making this year's CAA tournament a tremendous success.

Thank you for taking the time to view this newsletter. For more information on the city of Richmond, please visit www.RichmondGov.com and "Like" Richmond,VA - Mayors Office on Facebook.