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Budget Consultation tonight
Wed Jan 20, 2010 Miss Vicky
Residents of the downtown core (including Kitchissippi Ward) are encouraged to attend tonight's consultation on the city budget, 7 to 9pm at City Hall. Our councillor will be there, along with her colleagues Holmes and Doucet. Normally she has her own ward consultation as well, but it doesn't look like that's happening this year
The city budget debate has been quiet this year, perhaps because of the new process. Council committees developed their own budgets, and then a new Audit and Finance Committee put them all together for the final draft, which proposes an overall 3.9% property tax increase. Most of the budgets are seeing a small increase, instead of the sweeping cuts we've seen in past years' drafts - this is probably why you haven't heard the outcry from community organizations, arts groups and the like. But the draft is not without its drawbacks, so it's worth taking a look and making your voice heard.
One of the differences in the state of the city's finances this year is the start of a multi-phased uploading of social services from the municipality to the province (reversing the shifts that took place during the Harris years). It's been a long time coming, and this year's uploading means a $20 million savings to the city. Unfortunately, the savings are not being reinvested into the community and social services budget - indeed the modest increase to the budget are well below the cost of inflation and in some cases (social housing) represent a decrease. Not so good.
The other area to watch: transit. I don't mean the LRT (we'll save that for another time) but the basic OC transpo budget, which proposes another 7.5% rate hike as well as cuts to 47 bus routes across the city. Ken Gray over at the Citizen blogged an internal memo on the proposed cuts back in December.
Now that's the way to increase ridership and pave the way for future transit expansion - charge more for reduced services. Way to go, councillors!
Some people were moved to reply
I'm confused - you said 3.9% increase, but then said "well below the cost of inflation". Google brings up this, which gives the figures as of December last year, and they are less than 3.9%
Indeed, we are just coming out of a period of deflation.
What am I missing?
FWIW, I have nothing against a 3.9% increase. I'm just confused by what you've said.
EDIT: and I just happened to see this news story that inflation is less than expected, and was 1.3% in December. But of course that is a news report so don't take it at face value. Depends "which inflation" you are talking about :-)
[Edited By amckay Jan 20, 2010 02:38 PM]
the community and social services budget increase is below the cost of inflation. 3.9% is the property tax increase. Two different things.
looking at it again, "inflation" may not be the best term to use - People for a Better Ottawa looks at the numbers in light of average growth in the overall city budget (which is 2.9%, since a full 1% of the property tax increase goes to the police budget). Although PBO also says that "All growth estimates here need to be taken with a grain of salt as 2.9% growth is quite small and is likely not meeting even basic inflation in many departments."
My point, though, is that if the province is taking back $20 million of the cost of delivering programs, then that $20 in savings should be reinvested in social services - not diverted to other departments. Those programs have been whittled down so much in the last decade -this is a good opportunity to win back some of the lost ground.
Ah, OK, got it. That makes sense now. What I didn't grok but should have is that sub-budgets would not necessarily grow or shrink at the same rate as the overall budget. e.g. entire budget may grow by 1%. But if you look at the line-items in the budget, not every one of them will grow by 1%. Some more, some less. Together they all add up to the 1%
And also that the rise in taxes does not necessarily equal the rise in the city's entire budget (oddly enough). Though I think it would be pretty close.
And just cuz I nitpick this whenever I see it - a full 1 percentage point not percent of the property tax increase went to police. That's actually just over 25 percent of the tax increase. More dramatic when you state it that way too - that's pretty huge! Wow!
[Edited By amckay Jan 21, 2010 08:16 PM]
BTW, can the police just set their own budget unchecked? If so, that sure doesn't seem right.
sure isn't right. And yes, it is pretty much unchecked. There is a police services board but it can only send the budget back, it can't make changes. Plus it's stacked with people who aren't inclined to challenge what the police claim they need. So every year they get huge increases.
Wow, it is frustrating enough having elected individuals squander our money - but at least we have a way to voice our opinion of their performance.