New Haven Mayor John DeStefano talked about hard choices ahead in 2011 as he gave his State of the City address to a packed Aldermanic chamber Monday night.
One of those hard choices: layoffs. "Before this month ends, I will implement workforce reductions across the city and Board of Education," DeStefano said. Part of those cuts appear they will be coming from school cleaning staffs. DeStefano said he would look to reduce the cost to clean city school from $15 million to $8 million. He gave no specifics on how many city employees would be laid off, or from what other departments those cuts may come.
The Mayor also set his sights on New Haven's pension plans. "The simple fact is that as currently structured, the city employees and police and fire pension plans are going to run out of money," he said. "This is not a matter of blame. It is not a matter of rhetoric. It is a matter of fact." His plan to reduce those costs on the city include reducing benefit multipliers and cost of living adjustments after city employees retire. He wants to limit early retirement eligibility and increase penalties on those who do retire early. Lastly, DeStefano said the city must calculate pensions on base pay, not on overtime and sick leave buybacks, which inflate city employees' salaries.
He asked workers to pay their part for health care coverage. "The city must offer health care plans that resemble those held by the people paying the bills, our taxpayers," DeStefano said. He pointed to a new health care plan implemented by the Board of Education last month, which requires teachers to pay a much higher deductible than they did previously.
Turning his attention to the residents of New Haven, Mayor DeStefano said they would have to bear some of the burden as well. Cuts in services are likely. DeStefano said his budget next month will fund almost all city agencies at or below their current levels. "Residents will be impacted," he said.
DeStefano also wants those residents to share the costs of some services, including the controversial plan to make residents pay for storm water treatment. "If services are being provided, they ought to be paid for by those using them."
He called on Gov. Dannel Malloy to help ease the burden on cities in Connecticut. "The State of Connecticut holds a lot of our cards in their hands," he said. "They in large measure tell us what to do, and how to pay for it." DeStefano called for the state to allow local option taxes, something he said almost every other state in the nation allows. He also wants the state, which has its own financial problems, to share a part of the state sales tax with Hartford, New Haven and Bridgeport to diversify revenue bases.
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As a parade of New Haven school children entered the chamber, DeStefano said the tough choices the city must make were for them, the children who are growing up in the city. "It's these kids who we are elected to serve and who, if given half a chance, will shine brilliantly."
