Letter to the Springfield City Council on FY22 Budget
To the Springfield City Council –
Today you will be voting on the FY 22 Municipal Budget. My many thanks to the Finance Department, the Springfield City Council Finance Subcommittee, and all of the other city departments who have a hand in crafting this budget.
Undoubtedly during tonight’s public meeting, City Councilors will have specific questions about line items that need clarification, and I look forward to the discussion and deliberation that will take place. I am concerned, however, that what will get lost in the discussion is the rapid year over year growth of our municipal budget. I urge you to not miss this opportunity to discuss this in open session.
The FY21 budget represented a 5.2% increase over FY20, and the FY22 budget represents a 3.9% increase over FY21. Simply stated – the city budget is growing at a faster rate than the annual pay of most residents, especially city employees. The message I continue to hear is that much of the annual increases in our budget are due to mandates. With a proposed 5.7% YoY increase in the city side of our budget versus a 2.9% YoY increase in the school budget, if someone at the city is not talking with the state about the growth rate of these mandates – they should.
Recall that Springfield has the 4th highest commercial real estate tax rate in all of Massachusetts. Recall that among the 10 largest cities in Massachusetts, Springfield has the highest residential real estate tax rate. Nearly all are subject to some type of fee – a dog license, prepared meals tax, or excise tax. Recall that the Springfield Sewer & Water Commission has called for a 5.9% rate increase in FY22, after a 9.5% increase in FY21. By FY 2025, per the Multi Year Financial Plan, the city will be facing a 35 million dollar budget shortfall if current trends continue. Our revenue is not keeping up with our expenses, and the use of American Rescue Plan funds to address the revenue shortfalls over the next four years is just that – a short term solution.
I trust that all of the City Council will make well informed inquiries tonight into what aspects of the budget are needed and which might be removed. In your deliberations, I ask that you consider how the budget that you will pass will impact residents and businesses who are still reeling from a 25% unemployment rate in May 2020, and an unemployment rate of 6.9% as of April 2021. Families are still hurting. It is good to have an altruistic government who cares about those they govern, but please don’t forget that keeping additional hard-earned money in the hands of our residents and businesses also shows that you care.
Respectfully Submitted,
Juan F. Latorre III