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ASSEMBLY ADOPTS MAYOR’S FY04 OPERATING BUDGET Contending with the worst budget gap since the 1980s, the Anchorage Assembly and Mayor Mark Begich achieved unprecedented cooperation in passing a Fiscal 2004 operating budget that cuts costs, raises new revenues by reducing subsidies in city services, and eliminates non-essential programs. The $307 million budget proposal absorbs a $33 million gap, roughly 10 percent of the entire budget. “Anchorage’s 2004 operating budget was agreed to with unprecedented cooperation with the Assembly. After we introduced our budget proposal on Oct. 3, we worked daily with the Assembly to fine-tune it to a form that was broadly acceptable to Anchorage residents,” Begich said. “I appreciate the hard work by the nine members of the Assembly who co-sponsored our revised budget.” “The coming year’s budget will take on even greater importance than usual because Anchorage has not faced a more severe budget challenge since the oil price crash of the late 1980s,” the mayor said. The 479-page operating budget passed by the Assembly on Dec. 2 was guided by three principles:
“We could have tackled this budget gap two ways,” the mayor said. “We could have nickeled and dimed every department for several years, trying to provide public services with inadequate resources. I don’t think that approach is fair to the public, nor to the city. Instead, we’re using what I’m calling the duct-tape approach. It’s like applying a long strip of duct-tape to your arm and then jerking it off all at once. There’s immediate pain, but time to heal in the future.” The mayor said his approach to the budget gap is two-fold:
The budget calls for eliminating 110 current positions within municipal government. It also implements a wage and salary freeze in 2004 and halts the hiring of all but essential new positions. The mayor insisted the budget reflect a new policy of generally avoiding the use of “one-time” funds to pay for continuing costs, because that past practice increases budget pressures in future years. He proposed that one-time funds be used for investments that pay off in future years, such as consolidating health care plans and adopting electronic timecard systems for city employees. Focusing on the delivery of core services, Begich said cost reductions are being reached by reorganizing several departments, such as the Library, Parks and Recreation, Employee Relations, Property Tax Assessments and Treasury. Savings will also come from cutting cell phone and city vehicle use, combining health care plans and exploring cheaper purchases through cooperatives, such as with the Mat-Su Borough. Covering the actual costs of services calls for increases in the fees charged for many services, such as planning for new construction, increases in taxi cab permits, animal licenses, parks and the cost of inurnment at the Anchorage cemetery. In reducing non-core services, the budget proposal eliminates some road maintenance, reduces street sweeping and street light repairs and reduces winter trail maintenance. The Mayor said he believes the new budget allows the city to expand the economy with targeted investments in new economic development projects. |
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