On Monday night the Council approved a lay-off plan. This act was the last required in fixing our budget woes this fiscal year. While I understand why several of my colleagues voted against the plan, the reality is that the Council was left with little choice. Based on discussions with the Administration, had the layoff plan failed on Monday night even more employees would have been affected because there would have been less time in which to achieve the same amount of expense reductions.
It was not an easy choice. It is not a choice I hope to make again. Let’s review where this fiscal year went wrong and what the City’s leadership must do to keep history from repeating itself.
1) Problem: Lack of financial leadership
Solution: Fill the roles of CFO and Director of Administration & Finance. Explore why we have not attracted qualified candidates. Based on those conclusions, create and commit to an aggressive search for a qualified CFO and Director of Admin & Finance.
This is, without a doubt, the main cause of Plainfield’s financial difficulties. The City has not had consistent financial leadership in 5 years. We have not even had a permanent CFO for over 2 years. We currently do not have a Director of Administration & Finance. This means that our City Administrator is essentially filling the role of multiple positions at once. This is both unnecessary and irresponsible. Without a CFO or Director of Admin & Fin, there is limited oversight to the city’s financial processes and no checks and balances. We cannot begin a new fiscal year without whole financial leadership in place.
2) Problem: Failed union negotiations
Solution: Ensure that union concerns are being addressed to foster better working relationships with the Administration.
Poor communication, unreasonable expectations and uncooperative attitudes contributed heavily to the creation of this year’s layoff plan. Before a layoff plan is submitted to the Council for approval, unions have the opportunity to negotiate and agree to concessions or givebacks in lieu of layoffs. It is only after some unions communicated that they would rather move forward with layoffs than consider concessions that a layoff plan was created by the Administration. In these economic times everyone must give a little. In order to develop better relationships with the unions, City leadership must work to understand and meet their needs. For example, several PMEA members expressed concerns about employees living outside of the City. The Council started discussion on this matter and will continue that discussion in April’s meeting in order to determine how we can address the PMEA’s concerns.
3) Problem: Late budget introduction
Solution: FY 2011 budget introduction no later than September 1. Look into moving toward a Calendar year budget.
The fiscal year begins in July, however the budget was not introduced by the Mayor until mid-November, already 1/3 of the way through the fiscal year. The Council was then rushed to render budget hearings, gain consensus on and approval on amendments and approve the budget. All this was done in just two months. Now, in March, we are approving a layoff plan that due to state mandated timelines, won’t take effect until May. This leaves us with barely 2 months of savings. The obvious solution is to ensure that the budget is introduced earlier. If the budget was introduced earlier, there would have been more time left in the fiscal year so fewer employees would have been affected. Another solution that the Council has been discussing for some time is to move to a calendar year model. A budget year that runs from Jan 1 to Dec 31 will align us with terms of elected officials and prevent delays for political reasons.
4) Problem: Unclear expectations set by City Council
Solution: Council should adopt a resolution specifying a timeline for FY2011 budget process and urging the Administration to follow the set timeline.
Good leadership requires accepting responsibility when things go wrong. The Council did not set clear standards for the Administration. We must set higher standards. As a member of the Finance Committee, I requested that a formal schedule be put together and distributed to the Council. The Council should review this timeline and incorporate it into a resolution urging the Administration to act in the best interest of the City by moving the budget process along as quickly as possible.
I am committed to putting the City’s financial house in order. As Council President, I take this process very seriously. The Council’s fiduciary responsibilities cannot be taken lightly.
I am open to other suggestions on making the process a better one. Please share your thoughts. How do you think we can improve the budget process?
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15 comments:
All points are valid except timetable. The FY starts July 1. The budget should be in the Council's hands no later than June meeting. We know that is not going to happen,but there is no reason why Administration can not start the process today concurrent with the data they are still working with on the 2010 FY. The position that you must know what the State is going to do is just plain BS. As Mapp has said, a budget can always be amended as income projections change.
For those council members who voted against the layoffs, I would like to say a few things.
Layoffs are never easy, but how many of the people were laid off and how many lived in Plainfield? These people will have some income (unemployment) which certainly is not a salary income, but it is something. They will also get another job. It may take awhile, but they will get a job. And, we are talking about 17-20 people.
Contrast that with hundreds of taxpayers who live in the city. Many of them over 65 who are on a fixed income and cannot get jobs. What about them? They did everything right - they saved, they raised families and they worked until retirement hoping to enjoy the home they paid off, and their friends in the city they love. Then along comes taxes that put such a dent in their fixed income that they either lose their home, have to move to another area in Plainfield or move out of the city. They also need to be considered.
So, I ask those who voted against the budget to keep that thought in mind for the next go round. It is not easy, and believe me, I would not want to have the responsibility. But since you chose to be on the council, I plead with all of you to make sure that the 2011 budget is put in your hands very soon.
The real shame is that the administration, in the 2010 budget, demonstrated that they are not capable of putting together a good budget - they threw it in the council's laps. Let's all pray that it is much different this time.
These aren't quite budget process issues, but for starters, rewrite the City Charter.
Eliminate the positions of Public Safety Director and Director of Public Works and Urban Development. Expand the Mayor's cabinet to include: City Administrator, Director of Administration and Finance, Corporation Counsel, Public Works Director, Police Chief, Fire Chief, Director of Planning and Development, IT Director, and a Director of Health and Social Services.
Along these lines, I envision maximizing shared services between the city and the schools, and combining health, social services, senior services, and recreation under a single umbrella. Finally, if we are to be responsible to city residents and taxpayers who ultimately foot all the bills, dismantle the PMUA bureaucracy and fold it into Public Works. It is the height of negligence, and ultimately just a shell-game, to allow this albatross to remain on the loose.
Why all these changes? We need to increase the number of voices around the table and build a quality workforce of dedicated civil servants. There is no reason a talented and ambitious employee shouldn't aspire to move up the ranks to leadership of an operating division and potentially to City Administrator. As a community we would benefit enormously from their long-term commitment, knowledge of the city, as well as avoiding the pitfalls that come about when we rely on a small pool of individuals who bounce from one municipality to another.
Plainfield is here to stay. Let's call our own shots and not leave ourselves open to county and state machinations.
I think the most important way you can improve the budget process is to have a process.
It should include milestones so that the council and administration can meet to ensure timely progress - a touch base.
It should include specific deliverable dates as well as what is expected to be delivered.
For milestones, just an overview or a rough draft.
I would also suggest reformatting the budget so that it is clear and easy to understand.
Lastly, there must be some consequence if the deliverables are not on time. Perhaps there can be some legalality that will force a budget timeline, or the council may ask for public pressure. Something that ensures the process will work.
Good luck to all.
To Anonymous concerned about QCBL.
The Council did not vote against Recreation having a baseball league. It is not within our authority to render such decisions. It was discussed at Council meetings in which several Councilors suggested that QCBL should be supported. However, this is ultimately a decision that must be handled by the Administration.
If you have any other concerns or questions, please feel free to reach out to me directly via email or cell phone (annie.mcwilliams@plainfield.com, 908-458-7336).
To Anonymous at 8:14PM - Thank you for the kind words. Unfortunately I can't publish that comment because it might be offensive to others.
To ActiveCitizen - I decided to remove your comment because it might be considered offensive to others. I hope you understand. Please keep reading my blog!
Annie,
Good summary, but it's the tip of the iceberg. There are many more process, procedural and morale issues that need to be addressed, such as (but not limited to):
(1) decisions being made at only the very top levels resulting in delays, such as what you've seen with the budget approval process in the past 2 years, and wasting the time and efforts of qualified people at or near the Director level,
(2) hand-delivery and approval of paper time sheets so that simple tasks like payroll take up an inordinate amount of managerial time when there are far more pressing issues to resolve
(3) an Economic Development team that has yet to get started - for reasons that aren't clear. This is the one area where real planned growth will enhance local revenue streams and reduce taxes for property owners, yet it's not happening...
(4) a budget reconciliation and approval process that has unlinked Excel files so that each change must be edited twice to make the figures balance... There must be some simple Municipal Government software out there that would make this exercise easier to perform and prevent errors like what was presented to Trenton last year.
(5) others we can discuss at a later time.
The people of Plainfield only want value for the taxes they pay, in the form of reliable services for things they can't do on their own. Those of you who understand that and act accordingly are most needed!
I noticed that at least three of the people laid off in the first round are still working, never missed a paycheck so I am sure those in the clique in this round will keep their jobs as well. The party line is: "there's no money", but I see we find money for those we want to keep.
The budget process was difficult because the present administration made it so. I think with an intelligent and well read city council FORCING her feet to the fire it could go much better this year. Savings are always going to be controversial...such as to me, the library cuts were reprehensible considering the simple and all encompassing services they provide to all city residents, rich or poor. But, this is the nature of the beast. I hope all of you on the city council force accountability amongst other things upon our city "leader" this year...my best.
Merge the PMUA and Public works. Their services are redundant and residents pay for bureaucratic nonsense. Why am I paying the PMUA 2,000 a year? Replicate what South Plainfield, Westfield, or Dunnellen does! Stop letting the PMUA take advantage of your citizens.
Will someone please tell me why the council meets to discuss items with the PMUA? Dismantle them. You have the power. It will save taxpayer dollars in the long run. Start saving today.
PMUA rates are going up on April 1. Private haulers are still charging what they were xharging nearly 10 years ag $30 month. PMUA charges $66 per month in addition to the $1.2 million dollar subsidy from City taxes.
Private trash haulers can provide the same if not better service for significantly less and still make a profit. Why can’t the PMUA do the same for the residents and businesses of Plainfield? If they can’t get there through reform, then perhaps it is time to get the PMUA out of the trash business altogether.
Any thoughts one this from our elected officials? When are you looking at tackling this serious issue? Words are appreciated but results are warranted.
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