Council's Budget Priorities No Surprise

By Teresa Rochester

Jan. 9 -- Sticking with the familiar in a time of fiscal uncertainty, the City Council Tuesday night voted unanimously to adopt the five priorities it has relied on for the past two years to shape the 2002/2003 budget.

Education, quality of life, mobility, affordable housing and environmental issues once again topped the list, reflecting some of the major concerns expressed in a recent poll of 411 residents, who topped their list with issues relating to the homeless, growth, parking and traffic.

But unlike recent budget priority sessions, fiscal constraints shaped much of the debate, as council members, facing a $7.7 million budget deficit, described the upcoming fiscal year as time for planning instead of executing major projects.

"We should keep the same five priorities," said Councilman Richard Bloom. "They speak to the large group of issues that residents have."

Bloom added that the guiding principal when the council adopts its budget in June should be to "maintain fiscal flexibility." Other council members echoed the call for caution when it comes to taking on new projects.

"We can't simply write checks. We need to look at creative ways for getting things done," Councilman Ken Genser said. "This may be a good time for planning."

As in previous years, education once again grabbed the spotlight, with top civic leaders, including former mayors, pushing for increased funding for district schools.

But this time, the desperate pleas for a bailout were replaced by sober presentations predicting the dire impacts of decreased state funding and by calls for the City to adopt more aggressive ways to help fund its schools.

Supt. John Deasy, speaking at his first City budget priority session, noted that the district had become more fiscally responsible but added that with possible budget cuts looming at the state level money from the City would be crucial.

"Our community has high expectations for our school system and the education of our students, and we stand prepared to deliver on these expectations," Deasy said. "But as you know well this is not possible without ongoing and increased fiscal support."

Deasy said that barring labor negotiations the district does not foresee a deficit and that it has begun to establish a "fund balance to handle unforeseen events."

But he added, "However, like you, I suspect, this was all placed in jeopardy by the state fiscal deficit. While this angers me, it will not deter the work we need to do in order to close and eradicate achievement gaps."

Former mayor Dennis Zane said the district was standing on a "precipice" from which it can't move back. He called on the council to consider long-term funding strategies and offered up suggestions that included one or two percent cuts across the board to the general fund, which could generate $2 million to $3 million a year for schools.

Zane also suggested that the City could reorganize its capital improvement program by cutting low priority projects and rescheduling programs so they are spread out over a longer period of time, thus freeing up money that could go to the schools.

In addition, he suggested that the City look more closely at projects that might be financed by bonds, thus freeing up money.

"Having a Triple A bond rating doesn't mean anything if you don't use it," Zane said after the meeting.

Another possible revenue stream for schools could come from giving a percentage of general fund increases to the school district each year, Zane said. He also pointed to the use of earthquake redevelopment funds, which amount to approximately $20 million a year.

Council members responded by saying that education was a priority, but they balked at suggestions that would impact capital improvement projects.

"I'm open to looking at areas of our budget that we may be able to better utilize, but I would caution those who say it's (the money) there," said Bloom.

Education wasn't the only issue that brought out advocates. As in previous years, there was a call for more parks and affordable housing, while some members of the public called special attention to mobility, which includes parking and traffic, two of the major concerns expressed in the poll of residents.

Nearly a dozen members of the Borderline neighborhood group near Venice showed up to question a current plan to replace 40-year-old trees in their neighborhood with new trees. While some wanted the trees removed because they tore up the neighborhood's sewer system and raised sidewalks, others said the removal would jeopardize the area's character. Others, who noted the neighborhood's narrow streets, wanted to see safety in the area improve.

"The infrastructure is deteriorating," resident Dennis Woods said. "We have traffic and parking impacts."

During the deliberations, several council members acknowledge that some funds should go the Historical Society. Society president Louise Gabriel requested $150,000 for the organization's museum, which hopes to undertake an extensive project of cataloging and digitally recording the now defunct Outlook newspaper, which provided daily news in the city for 123 years.