School Board Approves $523 Million Budget
The Arlington School Board approved a new $523 million budget for Fiscal Year 2014 on Thursday.
As expected, the School Board’s adopted budget restored funding to teen parenting staffing, elementary reading teachers, high school gifted teachers and other programs that were slated for cuts under superintendent Dr. Patrick Murphy’s proposed $520.4 million budget. Proposed cuts to the school system’s minor construction/major maintenance fund were partially restored.
The budget also funds more buses to allow the school system’s transportation department to keep up with rising school enrollment. (A total of 23,725 students are expected to be enrolled at Arlington Public Schools next school year, an increase of 1,108 students — or nearly 5 percent — from 2012-2013.)
The Board amended its proposed budget to allocate $1.5 million from a $7.66 million reserve in order to fund $1,000 bonuses for teachers and staff at the top of the pay or longevity scale. The $1,000 one-time payments will be made to those employees since they are not eligible for receive a salary step increase in FY 2014.
The $523 million adopted budget is 4.3 percent higher than last year’s $501 million budget.
File photo
Pace of Paving Unchanged this Year, Will Ramp Up in 2014
Road construction season is underway in Arlington, but a concerted effort to improve overall road conditions won’t really ramp up until next year.
Arlington County crews will pave 49 lane miles this year, about 5 percent of the 974 lane miles of roadway maintained by the county. That’s a big step up from the 25 miles paved in 2009, 30 miles paved in 2010 and 36 miles paved in 2011. But it’s unchanged from the 49 miles paved last year.
The number of miles paved will jump next year, when extra funding kicks in thanks to the county’s FY 2013-2022 Capital Improvement Plan. Starting in 2014 and throughout the remainder of the CIP, the Arlington plans to pave 72 lanes miles per year.
By paving 72 lane miles, Arlington will get on a 15-year paving cycle recommended by county engineers. As of 2012, the countywide average Pavement Condition Index (a measure of road quality from a scale of 1 to 100) was 68.9. The extra paving is projected to improve Arlington’s average PCI to 74.6.
(The average county street deteriorates to a PCI of 45 after 15 years.)
Arlington’s road construction season starts in March and ends at the end of October. Among the roads set to be repaved this year are portions of Wilson Blvd in and around Clarendon, as well as portions of N. Harrison Street, Four Mile Run Drive and Shirlington Road.
In Fiscal Year 2013, the county spent $7.55 million of its $1.05 billion budget on paving. In the just-passed $1.09 billion FY 2014 budget, it will spend $7.63 million. Next year, that is expected to increase to $11.24 million.
The Right Note: Board Watching
The Right Note is a weekly opinion column by published on Thursdays. The views and opinions expressed in the column are those of the author and do not necessarily reflect the views of ARLnow.com.
Every year since I moved to Arlington in 2000, the County Board has passed a budget that effectively raised our taxes, either through increased rates or in effect, by not offsetting appraisal increases with tax rate decreases. And, every year in recent memory, the county’s press staff sends out a statement claiming it’s not really that bad.
This year’s press release said the tax increase will only cost the average homeowner $23 more per month. Over the past five years, the increases cited in those press releases total $73.50 per month. So, it now costs the average homeowner $882 more per year to live in Arlington than it did in 2008. In case you were wondering, this is only a small bite compared to what the Board has done in the revenue raising department since 2000.
If you rent, you have not escaped this cost as your landlord has most certainly passed some or all of these taxes on to you.
My favorite argument heard from at least one board member is that we should be glad to pay more property taxes because our houses are worth more. Of course, unless you sell your house, you will not recognize the gain. We actually have to pay the taxes from our incomes. I don’t know about you, but my income has not doubled since I moved into my home while my property taxes have.
The tax increase passed unanimously on Saturday. Then on Tuesday, county staff disclosed that the federal government pegged the price tag of the Columbia Pike trolley project at $310 million — nearly 25 percent over what we were told. The federal estimate said the project could cost as much as $402 million. Of course, when the federal government is estimating, we can safely assume to bet on the high side.
This price tag does not come as a surprise to those following the issue closely. It demonstrates the need for increased and independent accountability in how the Board spends our money.
As I wrote recently, it is time to revisit the idea of opening an office for an independent inspector general. With the under-estimated trolley cost, Artisphere cost overruns, and the $1 million bus stop, the perception that Arlingtonians are not getting straight answers is growing. In response, the County Manager announced she was reorganizing the internal auditing functions instead of bringing in a true independent perspective. With a $1 billion plus budget and $1 billion plus in debt, it is time to do more than an internal staff shuffle.
There was some good news from the April County Board actions. The Board agreed to treat food trucks like any other motor vehicle and allow them to park for two hours in parking spaces. While many communities have moved to impose additional restrictions on food trucks, this common sense move in favor of promoting both increased dining choices for consumers and opportunities for small businesses was a good one.
Mark Kelly is a former Arlington GOP Chairman and two-time Republican candidate for Arlington County Board.
Proposed APS Budget Trims Maintenance, Boosts Bus Funding
The new Arlington Public Schools proposed budget includes less money for minor construction and major maintenance, after the Arlington County Board approved a smaller tax increase than was sought by the School Board.
The School Board had asked for an additional 0.5 cent tax increase dedicated to school funding, in addition to the County Manager’s proposed 3.2 cent tax increase. In the end, the County Board approved a 3.5 cent increase, only 0.3 cents more than the manager’s proposal — and that increase will be split by the county and the school system.
With an earlier version of its proposed budget now facing a shortfall of $1.4 million, the School Board cut about $600,000 from the minor construction/major maintenance fund, and another $600,000 from the school system’s reserve fund. Even with the cuts, however, the maintenance and construction fund and the reserve fund are both set to receive more than $7 million apiece in the budget.
In a move expected to make parents happy, the new budget includes more funding for transportation.
Last week Arlington Public School parents were informed in a letter that all currently enrolled students who were eligible for bus service this year will remain eligible in the upcoming 2013-14 school year.
In order to maintain bus service while the school system adds nearly 1,000 additional students, APS is expected to add 10 new full-time positions to its transportation services department. The transportation budget will increase by about $1.75 million in Fiscal Year 2014, compared to FY 2013. All told, the FY 2014 proposed budget for transportation is $16.1 million.
The transportation budget boost comes after hundreds of parents protested changes to the busing policy at the beginning of this school year. The changes — intended to allow the school system to stop adding buses and drivers to its fleet — backfired when impacted parents complained bitterly about their children no longer being allowed to ride the bus to and from school.
The Arlington School Board is holding a public budget work session tonight (April 23) starting at 6:00 p.m. The School Board is expected to approve a final budget at its meeting on May 2.
County Board Approves New Budget
The Arlington County Board has unanimously approved a new $1.09 billion budget that, as expected, raises real estate taxes by 3.5 cents.
The Board raised taxes slightly above the 3.2 cent increase recommended by County Manager Barbara Donnellan, citing the need to eliminate proposed cuts to the police and fire departments and the county’s child care office, and the need to increase funding to safety net programs and Arlington Public Schools.
Arlington’s tax rate will now increase to $1.006 per $100 of assessed value.
“The overall tax and fee burden for the average Arlington homeowner will increase 4.1% — or about $23 a month,” according to a county press release (below, after the jump). “The adopted tax rate is lower than the advertised rate of $1.021 per $100 of assessed value. (It is also lower than the proposed rates for all other Northern Virginia jurisdictions, which range from $1.038 to $1.33.)”
Additional funding for the budget came thanks to an improved financial outlook, which in turn boosts tax revenues.
“This allowed the Board to restore many proposed service reductions, while only increasing the tax rate three-tenths of a cent above what was included in the proposed budget,” the county said.
Peter’s Take: Wrong Budget Priorities Stall Foreign Language Teaching
Peter’s Take is a weekly opinion column. The views and opinions expressed in this column are those of the author and do not necessarily reflect the views of ARLnow.com.
Earlier this year, when Arlington Public Schools Superintendent Patrick Murphy unveiled his proposed schools budget, he coined a new phrase to describe school expenditures which he was NOT proposing. He called them “unfunded investments”. George Orwell would have tingled with admiration.
Among Dr. Murphy’s unfunded investments was any money to start foreign language instruction at any Arlington elementary school that is not already offering such instruction. Acknowledging the inequity of the current situation in which some elementary schools offer this instruction while others do not, Dr. Murphy polished his Orwellian credentials by calling these unfunded foreign language programs “lighthouses to places we need to be going”.
Let’s acknowledge right up front that in a schools budget currently exceeding $500,000,000, there are areas in which savings could be achieved and should be achieved. Let’s also accept Dr. Murphy’s estimate that it currently costs about $450,000 per school to add a foreign language program to each of the nine elementary schools that currently lack one. In Arlington’s current budget environment, the best that could be hoped for is that this instruction could be phased in over several years. There is no sign, however, that any such gradual phasing is actually going to occur.
Parents at Tuckahoe Elementary are mounting a last ditch petition drive to ask the County Board to provide such a program in their school. In their petition, the Tuckahoe parents state:
“Tuckahoe students are being denied the important educational opportunity of learning a second language at an early age. 13 out of 22 Arlington elementary schools have this opportunity, including nearby schools such as McKinley, Jamestown, Ashlawn, and Glebe.”
These Tuckahoe parents may not succeed this year, but by taking their case directly to the County Board they have found the right target. It is the misplaced spending priorities of the County Board, not those of the School Board, that are primarily responsible for the unfair and inequitable situation in which these Tuckahoe parents now find themselves.
As I wrote last week, excessive and extravagant spending by the County Board on projects like the Artisphere, the Aquatic Center, the Clarendon dog park, and the Columbia Pike streetcar are directly impacting the ability of Superintendent Patrick Murphy to honor promises to the schools’ community to expand elementary foreign language instruction.
The County Board has dropped a black curtain over the beacon that might otherwise shine from Dr. Murphy’s lighthouse.
Peter Rousselot is a member of the Central Committee of the Democratic Party of Virginia and former chair of the Arlington County Democratic Committee.
County Board Set to Vote on 3.5 Cent Tax Hike
The Arlington County Board is set to vote on modified version of County Manager Barbara Donnellan’s recommended budget that includes a 3.5 cent tax hike while eliminating proposed cuts to the police and fire departments.
Donnellan had proposed a 3.2 cent real estate tax increase. The Board gave itself extra budget wiggle room by advertising a 5 cent increase in February. At a Fiscal Year 2014 budget markup work session Tuesday afternoon, the Board tentatively settled on a tax rate in-between the two, but closer to that proposed by Donnellan. The extra 0.3 cents will bring nearly $1 million in additional tax revenue.
The Board will vote on a final budget and tax rate at its meeting on Saturday.
The marked-up budget removes Donnellan’s proposal to slash community policing and reduce fire department fill-in staffing. As promised by County Board Chair Walter Tejada, it also restores funding for the county’s child care office.
Other additions to the budget, as reported to ARLnow.com, include $400,000 for permanent supportive housing, $660,000 for human services case managers and community nursing.
The Board also made some preliminary decisions about what to do with $11 million in “close out” funds left over from the FY 2013 budget. Among other measures, the Board will consider directing $3 million to the Affordable Housing Investment Fund and $2 million to a land acquisition fund for the parks department, along with additional funding for numerous community non-profit organizations.
Report: Arlington Lacks Robust Internal Auditing
A local civic activist is calling for Arlington to improve its internal financial auditing, lest more spending snafus fall through the cracks.
Suzanne Smith Sundberg, a member of the Arlington County Civic Federation Revenues and Expenditures Committee, has written an eight page report detailing what she characterizes as a lack of audit oversight over the county’s finances.
The county eliminated two internal auditing positions during budget cuts in 2010, Sundberg writes, a move that raised red flags with her committee at the time. Recent news items have supported their concern and point to need to create a permanent internal auditing office, she says.
“Recent events in Arlington County — mounting discontent over the ongoing taxpayer support devoted to keeping the Artisphere afloat, taxpayers’ demonstrated opposition to the Columbia Pike streetcar at the recent town hall, and the public outcry over the eye‐popping $1 million price tag for a single bus Super Stop — provide clear evidence that citizens are losing confidence in their local government and its ability to utilize resources in an efficient, effective, and practical manner,” Sundberg writes.
The county employs an external auditing firm, CliftonLarsonAllen. Sundberg, however, pointed to the case of an Arlington County employee convicted of embezzling $12,000 from the county fair as evidence that external auditing is not comprehensive enough to catch many financial irregularities.
County Manager Barbara Donnellan has included $250,000 in one-time funds for “an internal audit function in the Department of Management and Finance” in her proposed FY 2014 budget – still subject to County Board approval – but Sundberg says that doesn’t go far enough.
“Although it’s a welcome step in the right direction, the County Manager’s proposal in her FY 2014 budget is vague and appears insufficient to support the establishment of a robust, permanent internal audit function in Arlington County,” she writes. “No effective internal audit function can ever be established if it is treated as an afterthought, subject to elimination or significant reduction when money is tight. In fact, the most advantageous time to have a strong, independent audit function is during economic downturns when difficult choices must be made and every dollar counts.”
Sundberg suggests that Arlington look to Fairfax County or Montgomery County for examples of effective internal auditing mechanisms.
Fairfax County has two separate internal auditing offices. Montgomery County created an Office of the Inspector General in 1997. Sundberg cites data suggesting that both counties save millions of dollars annually thanks to their internal controls. Arlington, she says, should do the same.
“If Arlington County cannot or will not provide sufficient resources, authority, and independence to sustain a robust and permanent internal audit function, then the establishment of an office of inspector general or special independent auditor — or whatever statutory option may be available — is all the more necessary,” she writes.
Sundberg’s report represents her own analysis and opinion. It has not been endorsed by the Civic Federation.
Peter’s Take: Childcare Fiasco is Just the Tip of the Iceberg
Peter’s Take is a weekly opinion column. The views and opinions expressed in this column are those of the author and do not necessarily reflect the views of ARLnow.com.
As ARLnow.com reported last week after an enormous public outcry, the Arlington County Board has decided not to accept a proposal by the Arlington County Manager to save roughly $250,000 annually by cutting the additional staff Arlington needs to enforce stricter child care standards for Arlington childcare facilities.
What prompted the County Manager to make this proposal in the first place? What are the most important lessons to be learned from this experience?
The County Manager made this proposal because she was instructed last November to make recommendations for cuts in the County’s operating budget that added up to one half of the then estimated $50 million shortfall in the budget. She was looking for ways to cut about $25 million out of the operating budget. This proposed $250,000 cut represented only one percent of the savings she was trying to achieve, yet she proposed the cut anyway.
I believe the County Manager made this recommendation in good faith because it was her way of trying to cope with the lack of willingness by the County Board to reduce or eliminate the huge expenses associated with financing projects like the Artisphere, the Aquatic Center, and the Clarendon dog park. With those projects and others like them “off the table”, the Manager was forced to reach out for a relatively small projected saving in an area like this.
The many Arlington consumers of child care services revolted and shone a light on the risks of gutting Arlington’s child care guidelines. But, those risks were well known, or certainly should have been well known, beforehand.
This $250,000 skirmish over childcare guidelines is just a taste of much more dire cuts to Arlington’s social safety net that are in the offing in future battles over the FY 15, 16, and 17 budgets unless the County Board fundamentally alters its current trajectory of layering one overly-costly capital project after another onto a budget beset by revenue shortfalls due to the flat commercial real estate sector of Arlington’s economy.
Claims that some of these capital projects, like the Columbia Pike streetcar, don’t impact Arlington’s operating budget because they are funded by a “special surtax on commercial property that can only be used for transportation”, are just plain wrong. These supposedly special capital projects do indeed affect Arlington’s operating budget adversely. There is “no such thing as a free lunch.”
The same commercial property owners who pay this special transportation surtax also pay the regular real estate tax that funds the bulk of Arlington’s operating budget. If the Board continues to impose this special transportation surtax at the maximum rate, while also continuing to raise the regular real estate tax rate that directly funds the operating budget, these commercial property owners will pass these costs on to Arlington consumers of their products or services, or they will move to greener pastures in Tysons.
Peter Rousselot is a member of the Central Committee of the Democratic Party of Virginia and former chair of the Arlington County Democratic Committee.
School Board to Present Budget to County Board
(Updated at 8:35 p.m.) The Arlington School Board will present its proposed budget to the Arlington County Board tonight. The joint meeting comes as the School Board has requested an additional $3.1 million in tax funding from the County Board.
The School Board’s proposed budget calls for $524.5 million in expenditures, roughly $4 million more than Superintendent Dr. Patrick Murphy’s proposed budget. The board’s budget keeps most elements of Murphy’s budget in tact — including merit-based pay raises for teachers, no increase in class sizes and funding to buy more school buses — but scales back some proposed cuts.
Cuts to teen parenting staffing, elementary reading teachers, high school gifted teachers, Standards of Learning teachers and minor construction/major maintenance have been reduced collectively by $2.3 million. The budget also adds a $600,000 reserve, and $1.1 million to account for an increase in projected school enrollment.
Murphy’s budget expected enrollment to increase from 22,613 students this school year to 23,586 students for the 2013-2014 school year. The latest spring projection puts 23,725 students in Arlington classrooms for the next school year.
All told, the increase in enrollment will require $11.1 million for additional staffing, materials, furniture and relocatable classrooms, according to the School Board’s budget presentation, set to be delivered tonight. The new trailer classrooms alone will cost $2 million.
The School Board is asking the County Board for a dedicated 0.5 cent real estate tax increase to help pay for the reduction in cuts and the added enrollment. The tax hike would be expected to bring in an additional $3.1 million. The rest of the $4 million is expected to come from one-time funding and additional state funding.
Arlington Public Schools are expected to face additional budget pressures in the next several years, as enrollment continues to grow and as new schools and school additions are built. An addition to Ashlawn Elementary is expected to be complete in time for the 2014-2105 school year, while a new elementary school on the Williamsburg Middle School campus is expected to be complete in time for 2015-2016.
Those new additions and schools will come with additional administrative and operational costs. This comes at a time of weakness for property values in Arlington — the main driver of revenue for the county and the school system. During a meeting with reporters in February, Dr. Murphy said future budgets “could be challenging.”
While teachers for the new Williamsburg elementary will be largely pulled from overcapacity schools, administrative and materials costs for the school are slated to be included in next year’s budget process.
“If all things stay the same, we’re very concerned for FY 2015,” Murphy said.
The joint School Board/County Board work session will take place at 7:00 p.m. tonight (April 9) in rooms 101/103/105 of the Syphax/Sequoia building at 2110 Washington Blvd. The public is encouraged to attend.
Residents will get a chance to weigh in on the School Board’s budget at a public hearing on Thursday, April 18.
Artisphere Over Budget for FY 2013
The Artisphere cultural center in Rosslyn is expected to be up to 50 percent over its net budget for Fiscal Year 2013, ARLnow.com has learned.
Artisphere was budgeted to require only $1.6 million in net tax support for FY 2013, down from $2.3 million in FY 2012. With only about 3 months left in the fiscal year, however, Arlington County is projecting that Artisphere will require an additional $600,000 to $800,000, which would bring bring the actual net tax support to $2.2-$2.4 million.
County officials say the deficit is due to a combination of factors: a shortfall in revenue and higher-than-expected expenses.
“Based on Artisphere’s numbers for the first three quarters of FY13, we foresee shortages in the areas of ticketing and admission income, and overages in personnel and facility expense,” said Karen Vasquez, Cultural Affairs Director for Arlington Economic Development, which oversees Artisphere.
“Ticket and admission income is low due to a decrease in programming during the first half of FY 2013 while we hired a new programming director,” she said in an email. “Catering/concession income from large social events was over-estimated in the business plan and is also low. Temp employees were underestimated and underfunded in the business plan and are therefore running over budget.”
The budget woes come at a time when Artisphere is facing scrutiny as part of the FY 2014 budget process. County Manager Barbara Donnellan has proposed budgeting $1.8 million in net tax support in FY 2014, but dividing that up between on-going and one-time funds — with the goal of weaning the cultural center off taxpayer support.
The county is also working to set up a non-profit organization to solicit tax-deductible donations for Artisphere.
“For next year’s budget (FY14) we are currently reviewing operational options with the Manager’s office which are designed to lower overall net tax support and bring it in line with the proposed budget of $1.8 million,” Vasquez said. “In addition, we are moving toward the establishment of a 501c3 to help diversify revenue sources and to include private–sector funding as well as the current public funding.”
The Right Note: Time for an Inspector General
The Right Note is a weekly opinion column. The views and opinions expressed in the column are those of the author and do not necessarily reflect the views of ARLnow.com.
Stockton, California is proceeding in bankruptcy. It is a cautionary tale of a local government who thought the goose would continue to lay golden eggs and allowed themselves to spend more than prudence dictated.
Stockton is about 50 percent larger in population than Arlington and it is the largest city to go bankrupt. Stockton’s debt at the time of filing for Chapter 9 protection was $500 million, approximately half of Arlington’s current debt load. Jefferson County, Alabama is already working through the largest municipal bankruptcy filing in history with approximately $4.2 billion in debt.
What Arlington has compared to other municipalities is the seat of the federal government as its next door neighbor. Arlington was therefore largely shielded from the effects felt in many places during the recession. While the County is not increasing spending at the rate of the last decade, our county officials have actually plowed full speed ahead on capital expenditures and show no desire to slow down.
The County spent $1 million on one dog park while harassing a business owner who wanted to beautify another one for free. The County spent millions on the Artisphere which has not lived up to any of the promises made when the Board agreed to fund the project. Voters approved a parks bond that funded an aquatics center which may cost taxpayers $79 million to construct. And, the boondoggle trolley project, which will almost certainly cost well over the current $250 million price tag, is coming to the Pike.
The current symbol of spending excess in Arlington is the $1 million bus stop on Columbia Pike — a precursor to the trolley project. The price tag is so outrageous that even CNN ran a story on it this week. The County Manager said they would “reassess” these “super stops” before moving forward, but the plan all along was for each of the 24 stops to cost over $850,000 on average.
The County Board should reassess the need for an independent office of Inspector General to audit all county expenditures. The Board has resisted the idea raised first by the Civic Federation consistently, but do we really believe the same county staff that oversaw the projects to begin with will produce an independent analysis? With a billion dollars and climbing in debt, it is time for the Board to embrace this measure of transparency and accountability.
Mark Kelly is a former Arlington GOP Chairman and two-time Republican candidate for Arlington County Board.
Peter’s Take: Aquatic Center, Dog Park Costs are Extravagant
Peter’s Take is a weekly opinion column published on Tuesdays. The views and opinions expressed in this column are those of the author and do not necessarily reflect the views of ARLnow.com.
In last week’s column, I explained why Arlington needs to develop a core services approach to deal with its budget. Several commenters offered helpful suggestions as to how Arlington ought to define a core services approach.
For example:
- “Another way to look at the role of government revolves around the phrase ‘Basic Human Needs.’ Things like the Artisphere, other arts and cultural projects, fancy swimming pools, and dog parks need to take a back seat to education, public safety, assistance to the needy.” -Willy
- “Focus on the core and spend in other [areas] only as funds permit. But equally as important, spend wisely on everything.” -John Fontain
- “It’s stuff that you would think is almost too self-evident to need mentioning. But when you see the cuts proposed, you have to wonder. Sure, there is some room for debate about what is core, and the published example from California is just one example.” -Flux
Of course, there are refinements, adjustments and other details that Arlington needs to address in order to adopt a core services approach to its budget.
For example:
- Core services such as police, fire, and schools should not be immune from cuts. As “John Fontain” says, Arlington should “spend wisely on everything”. But, programs and services in core areas such as these should be given greater protection from cuts than programs in more peripheral areas.
- Contrary to the views of another commenter last week, I certainly do not believe that Arlington should stop funding parks or libraries. These are critical functions of our local government and justify very substantial continuing investment.
Where Arlington has missed the mark is by spending, or proposing to spend, extravagant amounts of money in areas relating to, for example, public recreation. Don’t get me wrong. I believe it is important for Arlington to provide facilities like swimming pools and dog parks. But, I also believe it is extravagant to construct an $82 million Aquatics Center or a $1.7 million dog park.
In the end, Arlington needs to adopt a core services approach to budgeting because such an approach will provide a publicly articulated and understood set of values by which budget proposals can be measured.
A core services approach to budgeting should only be adopted by the County Board after an appropriate process of community engagement.
Peter Rousselot is a member of the Central Committee of the Democratic Party of Virginia and former chair of the Arlington County Democratic Committee.
How Arlington Could Balance Its Budget Without a Tax Hike
In her proposed FY 2014 budget, which calls for a 3.2 cent tax hike and 9.2 million in spending cuts, County Manager Barbara Donnellan also identified — for discussion purposes — ways the county could cut enough spending to negate the need for tax hikes.
The county would need to cut an additional $13 million to balance the budget without the property tax increase. Among Donnellan’s theoretical options for cuts are: reducing library hours, closing Artisphere, delaying major capital projects, eliminating employee pay raises and cutting maintenance funds.
From the manager’s budget:
- Changing operating hours of facilities and / or evaluate repurposing or closure of facilities
- Reducing library hours to 2011 levels – $0.5 million
- Closing the Artisphere would result in $0.9 million in ongoing savings in FY 2014 (assuming one-time closure costs are covered with other funds)
- Delay opening of new facilities which could result in operating cost and possibly debt service savings
- Delay opening of Arlington Mill Community Center to early FY 2015- $2.5 million in operating costs
- Delay construction of Long Bridge Aquatics Facility by one year – debt service savings in FY 2014 of $1.5 million
- Evaluate employee compensation, including both pay and benefit levels
- Eliminate merit step increase for FY 2014 – $3.4 million
- Shift health care increase to employees and retirees – $1.8 million
- Evaluate service levels in each operating department for possible reduction or elimination
- A 1% across the board reduction in County departments would yield $4 – $4.5 million
- Reduce maintenance capital — a 10% reduction would equal over $1 million
- Redirection of dedicated revenue streams, e.g., reduce allocation to Crystal City Tax Increment Financing Area from 33 to 20% would yield $0.9 million; redirect dedicated bike-pedestrian fee to any General Fund use – $1.2 million
On top of the county’s $13 million in cuts, in a no-tax-hike scenario, Arlington Public Schools would need to find an additional $6.8 million to cut from its budget.
Even if tax rates remained the same, however, local homeowners would still pay higher taxes this year. The average single family home property tax bill would increase $52, thanks to an increase in property assessments. Under Donnellan’s budget, the average homeowner will pay an additional $262.
If the county were to decide to do away with all of Donnellan’s proposed cuts — including cuts to public safety, human services and other departments — Arlington would have to raise the real estate tax rate 5.7 cents to $1.028 per $100 in assessed value. That would result in a $351 increase in the average real estate tax bill.
Such a tax hike is not legally possible in FY 2014. Last month the Arlington County Board voted to advertise a $1.021 tax rate, meaning the Board cannot ultimately set the rate higher than that.
The Board will adopt its final budget on April 20. Public budget hearings are scheduled for March 26 and 28. The Board’s next budget work session is set for March 12, and will address the police, fire, sheriff and emergency management budgets.
Peter’s Take: Prioritize Core Services, Stop Funding Artisphere
Peter’s Take is a weekly opinion column published on Tuesdays. The views and opinions expressed in this column are those of the author and do not necessarily reflect the views of ARLnow.com.
In last week’s column, I explained why a new normal has arrived for Arlington’s budget. I concluded that business as usual in setting budget priorities must change. In response, one commenter named “Courthouse Diva” said “[I] love the idea of defining core services — everything does not need to be core.”
Courthouse Diva nailed it.
Arlington needs to develop standards to define core services, and then use those standards to decide which services and programs are core services and those that are at the edge or outside of that core.
How does Arlington handle this now?
For the FY 14 budget now under review, the County Board essentially told the County Manager, “If you think there’s going to be a $50 million shortfall, design a budget that eliminates that shortfall by relying half on spending cuts and half on tax increases.” The manager was then left to recommend a combination of spending cuts and tax increases, using that very general guidance.
How would a core services approach be different?
Under a core services approach, programs and services at the center of the core would have much greater protection from any cuts. The farther out you move from the core, there would be less and less protection. The size of a cut as a percentage of the total expenditures in its category would be greater the farther out from the core.
