Tight budget leaves Richmond mulling unpopular cuts

By Robert Rogers
Contra Costa Times
Posted:   06/20/2012 04:57:31 PM PDT
Updated:   06/20/2012 04:57:34 PM PDT

Richmond's city government has to take a scalpel to its budget. The question is where to make the deepest cuts.
Facing a projected $2.6 million budget deficit in fiscal year 2012-13, a divided City Council this week directed staff to explore the effects of broad salary and benefits cuts for city employees and impose a steep reduction in funding for civic festivals.
City Council members and staff generally agreed that the budget shortfall could not be closed without cuts to the city's payroll.
"We can either let people go and keep everybody else at the same compensation levels, or we can have across-the-board (salary) decreases and hope for better times," Councilman Tom Butt said. "To me, there is something more attractive about everybody giving up something."
The council voted 5-2, with Corky Booze and Nat Bates dissenting, to have staff continue discussions and calculations associated with a tiered pay cut plan and to cap all festival funding at $5,000, which would save about $55,000 by cutting more than half the overall budget for civic festivals.
The tiered plan, proposed by Mayor Gayle McLaughlin, would cut by 2 percent the pay of department heads and other executive staff. The plan would cut 1.5 percent from the pay of non-executives who earn more than $100,000 annually, and would cut by 1 percent the pay of all employees who earn between $40,000 and $100,000. Employees who earn less than $40,000 annually -- mostly part-time staff -- would not face salary reductions under the plan.
McLaughlin said the plan could amount to more than $1 million in savings.
"As mayor I make $46,000, so I would be subject" to the cuts, McLaughlin said. "I am willing to tighten my belt too and lead by example."
Cuts to employee pay would require negotiations with local unions. Human Resources Director Leslie Knight said the city must negotiate with six unions, and that at least two had already volunteered to concede sick leave buyback perks. But there was no indication Tuesday that pay cuts would be conceded.
"We are willing to entertain some concessions, but pay is not one of them," said Richmond police Capt. Anthony Williams, president of the Richmond Police Management Association. "It's our position that the city has other alternatives rather than to cut the pay of its hardworking staff."
Pay cuts for the city's 900-person work force would be only part of a slimmed-down city government proposed in the 2012-13 budget, which could be debated and fine-tuned for weeks. City departments' proposed budgets are on average 10 percent smaller than they were a year ago, according to staff reports.
The largest single program reduction is in the city's street-paving fund, which is proposed to be slashed from $5.9 million to $3.6 million, despite ongoing concerns with the conditions of city streets.
Council and staff also reviewed data associated with other costs, including city-issued cars used by city employees.
Reducing funding support to the city's popular ethnic festivals, like Juneteenth and Cinco de Mayo, was criticized by several residents Tuesday.
Bates said small, unpopular cuts moved the process nowhere.
"We're looking at a $2.6 million deficit," Bates said. "These (talks) are nickels and dimes."
Budget discussions are set to continue at the next council meeting June 26. The city maintains a reserve fund of about $10 million.
Contact Robert Rogers at 510-262-2726. Follow him at Twitter.com/roberthrogers.