budget

School Board to Present Budget to County Board

By ARLnow.com

Parents pack an Arlington County School Board meeting on block scheduling at middle schools(Updated at 8:35 p.m.) The Arlington School Board will present its proposed budget to the Arlington County Board tonight. The joint meeting comes as the School Board has requested an additional $3.1 million in tax funding from the County Board.

The School Board’s proposed budget calls for $524.5 million in expenditures, roughly $4 million more than Superintendent Dr. Patrick Murphy’s proposed budget. The board’s budget keeps most elements of Murphy’s budget in tact — including merit-based pay raises for teachers, no increase in class sizes and funding to buy more school buses — but scales back some proposed cuts.

Cuts to teen parenting staffing, elementary reading teachers, high school gifted teachers, Standards of Learning teachers and minor construction/major maintenance have been reduced collectively by $2.3 million. The budget also adds a $600,000 reserve, and $1.1 million to account for an increase in projected school enrollment.

Arlington Public Schools logoMurphy’s budget expected enrollment to increase from 22,613 students this school year to 23,586 students for the 2013-2014 school year. The latest spring projection puts 23,725 students in Arlington classrooms for the next school year.

All told, the increase in enrollment will require $11.1 million for additional staffing, materials, furniture and relocatable classrooms, according to the School Board’s budget presentation, set to be delivered tonight. The new trailer classrooms alone will cost $2 million.

The School Board is asking the County Board for a dedicated 0.5 cent real estate tax increase to help pay for the reduction in cuts and the added enrollment. The tax hike would be expected to bring in an additional $3.1 million. The rest of the $4 million is expected to come from one-time funding and additional state funding.

Arlington Public Schools are expected to face additional budget pressures in the next several years, as enrollment continues to grow and as new schools and school additions are built. An addition to Ashlawn Elementary is expected to be complete in time for the 2014-2105 school year, while a new elementary school on the Williamsburg Middle School campus is expected to be complete in time for 2015-2016.

Those new additions and schools will come with additional administrative and operational costs. This comes at a time of weakness for property values in Arlington — the main driver of revenue for the county and the school system. During a meeting with reporters in February, Dr. Murphy said future budgets “could be challenging.”

While teachers for the new Williamsburg elementary will be largely pulled from overcapacity schools, administrative and materials costs for the school are slated to be included in next year’s budget process.

“If all things stay the same, we’re very concerned for FY 2015,” Murphy said.

The joint School Board/County Board work session will take place at 7:00 p.m. tonight (April 9) in rooms 101/103/105 of the Syphax/Sequoia building at 2110 Washington Blvd. The public is encouraged to attend.

Residents will get a chance to weigh in on the School Board’s budget at a public hearing on Thursday, April 18.

Artisphere Over Budget for FY 2013

By ARLnow.com

Artisphere signThe Artisphere cultural center in Rosslyn is expected to be up to 50 percent over its net budget for Fiscal Year 2013, ARLnow.com has learned.

Artisphere was budgeted to require only $1.6 million in net tax support for FY 2013, down from $2.3 million in FY 2012. With only about 3 months left in the fiscal year, however, Arlington County is projecting that Artisphere will require an additional $600,000 to $800,000, which would bring bring the actual net tax support to $2.2-$2.4 million.

County officials say the deficit is due to a combination of factors: a shortfall in revenue and higher-than-expected expenses.

“Based on Artisphere’s numbers for the first three quarters of FY13, we foresee shortages in the areas of ticketing and admission income, and overages in personnel and facility expense,” said Karen Vasquez, Cultural Affairs Director for Arlington Economic Development, which oversees Artisphere.

Artisphere in 2010“Ticket and admission income is low due to a decrease in programming during the first half of FY 2013 while we hired a new programming director,” she said in an email. “Catering/concession income from large social events was over-estimated in the business plan and is also low. Temp employees were underestimated and underfunded in the business plan and are therefore running over budget.”

The budget woes come at a time when Artisphere is facing scrutiny as part of the FY 2014 budget process. County Manager Barbara Donnellan has proposed budgeting $1.8 million in net tax support in FY 2014, but dividing that up between on-going and one-time funds — with the goal of weaning the cultural center off taxpayer support.

The county is also working to set up a non-profit organization to solicit tax-deductible donations for Artisphere.

“For next year’s budget (FY14) we are currently reviewing operational options with the Manager’s office which are designed to lower overall net tax support and bring it in line with the proposed budget of $1.8 million,” Vasquez said. “In addition, we are moving toward the establishment of a 501c3 to help diversify revenue sources and to include private–sector funding as well as the current public funding.”

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The Right Note: Time for an Inspector General

By Mark Kelly

The Right Note is a weekly opinion column. The views and opinions expressed in the column are those of the author and do not necessarily reflect the views of ARLnow.com.

Mark Kelly

Stockton, California is proceeding in bankruptcy. It is a cautionary tale of a local government who thought the goose would continue to lay golden eggs and allowed themselves to spend more than prudence dictated.

Stockton is about 50 percent larger in population than Arlington and it is the largest city to go bankrupt. Stockton’s debt at the time of filing for Chapter 9 protection was $500 million, approximately half of Arlington’s current debt load. Jefferson County, Alabama is already working through the largest municipal bankruptcy filing in history with approximately $4.2 billion in debt.

What Arlington has compared to other municipalities is the seat of the federal government as its next door neighbor. Arlington was therefore largely shielded from the effects felt in many places during the recession. While the County is not increasing spending at the rate of the last decade, our county officials have actually plowed full speed ahead on capital expenditures and show no desire to slow down.

The County spent $1 million on one dog park while harassing a business owner who wanted to beautify another one for free. The County spent millions on the Artisphere which has not lived up to any of the promises made when the Board agreed to fund the project. Voters approved a parks bond that funded an aquatics center which may cost taxpayers $79 million to construct. And, the boondoggle trolley project, which will almost certainly cost well over the current $250 million price tag, is coming to the Pike.

The current symbol of spending excess in Arlington is the $1 million bus stop on Columbia Pike — a precursor to the trolley project. The price tag is so outrageous that even CNN ran a story on it this week. The County Manager said they would “reassess” these “super stops” before moving forward, but the plan all along was for each of the 24 stops to cost over $850,000 on average.

The County Board should reassess the need for an independent office of Inspector General to audit all county expenditures. The Board has resisted the idea raised first by the Civic Federation consistently, but do we really believe the same county staff that oversaw the projects to begin with will produce an independent analysis? With a billion dollars and climbing in debt, it is time for the Board to embrace this measure of transparency and accountability.

Mark Kelly is a former Arlington GOP Chairman and two-time Republican candidate for Arlington County Board.

Peter’s Take: Aquatic Center, Dog Park Costs are Extravagant

By Peter Rousselot

Peter’s Take is a weekly opinion column published on Tuesdays. The views and opinions expressed in this column are those of the author and do not necessarily reflect the views of ARLnow.com.

In last week’s column, I explained why Arlington needs to develop a core services approach to deal with its budget. Several commenters offered helpful suggestions as to how Arlington ought to define a core services approach.

For example:

  • “Another way to look at the role of government revolves around the phrase ‘Basic Human Needs.’ Things like the Artisphere, other arts and cultural projects, fancy swimming pools, and dog parks need to take a back seat to education, public safety, assistance to the needy.” -Willy
  • “Focus on the core and spend in other [areas] only as funds permit. But equally as important, spend wisely on everything.” -John Fontain
  • “It’s stuff that you would think is almost too self-evident to need mentioning. But when you see the cuts proposed, you have to wonder. Sure, there is some room for debate about what is core, and the published example from California is just one example.” -Flux

Of course, there are refinements, adjustments and other details that Arlington needs to address in order to adopt a core services approach to its budget.

For example:

  • Core services such as police, fire, and schools should not be immune from cuts. As “John Fontain” says, Arlington should “spend wisely on everything”. But, programs and services in core areas such as these should be given greater protection from cuts than programs in more peripheral areas.
  • Contrary to the views of another commenter last week, I certainly do not believe that Arlington should stop funding parks or libraries. These are critical functions of our local government and justify very substantial continuing investment.

Where Arlington has missed the mark is by spending, or proposing to spend, extravagant amounts of money in areas relating to, for example, public recreation. Don’t get me wrong. I believe it is important for Arlington to provide facilities like swimming pools and dog parks. But, I also believe it is extravagant to construct an $82 million Aquatics Center or a $1.7 million dog park.

In the end, Arlington needs to adopt a core services approach to budgeting because such an approach will provide a publicly articulated and understood set of values by which budget proposals can be measured.

A core services approach to budgeting should only be adopted by the County Board after an appropriate process of community engagement.

Peter Rousselot is a member of the Central Committee of the Democratic Party of Virginia and former chair of the Arlington County Democratic Committee.

How Arlington Could Balance Its Budget Without a Tax Hike

By ARLnow.com

arlington-va-logoIn her proposed FY 2014 budget, which calls for a 3.2 cent tax hike and 9.2 million in spending cuts, County Manager Barbara Donnellan also identified — for discussion purposes — ways the county could cut enough spending to negate the need for tax hikes.

The county would need to cut an additional $13 million to balance the budget without the property tax increase. Among Donnellan’s theoretical options for cuts are: reducing library hours, closing Artisphere, delaying major capital projects, eliminating employee pay raises and cutting maintenance funds.

From the manager’s budget:

  • Changing operating hours of facilities and / or evaluate repurposing or closure of facilities
    • Reducing library hours to 2011 levels – $0.5 million
    • Closing the Artisphere would result in $0.9 million in ongoing savings in FY 2014 (assuming one-time closure costs are covered with other funds)
  • Delay opening of new facilities which could result in operating cost and possibly debt service savings
  • Evaluate employee compensation, including both pay and benefit levels
    • Eliminate merit step increase for FY 2014 – $3.4 million
    • Shift health care increase to employees and retirees – $1.8 million
  • Evaluate service levels in each operating department for possible reduction or elimination
    • A 1% across the board reduction in County departments would yield $4 – $4.5 million
    • Reduce maintenance capital — a 10% reduction would equal over $1 million
  • Redirection of dedicated revenue streams, e.g., reduce allocation to Crystal City Tax Increment Financing Area from 33 to 20% would yield $0.9 million; redirect dedicated bike-pedestrian fee to any General Fund use – $1.2 million

On top of the county’s $13 million in cuts, in a no-tax-hike scenario, Arlington Public Schools would need to find an additional $6.8 million to cut from its budget.

Even if tax rates remained the same, however, local homeowners would still pay higher taxes this year. The average single family home property tax bill would increase $52, thanks to an increase in property assessments. Under Donnellan’s budget, the average homeowner will pay an additional $262.

If the county were to decide to do away with all of Donnellan’s proposed cuts — including cuts to public safety, human services and other departments — Arlington would have to raise the real estate tax rate 5.7 cents to $1.028 per $100 in assessed value. That would result in a $351 increase in the average real estate tax bill.

Such a tax hike is not legally possible in FY 2014. Last month the Arlington County Board voted to advertise a $1.021 tax rate, meaning the Board cannot ultimately set the rate higher than that.

The Board will adopt its final budget on April 20. Public budget hearings are scheduled for March 26 and 28. The Board’s next budget work session is set for March 12, and will address the police, fire, sheriff and emergency management budgets.

Peter’s Take: Prioritize Core Services, Stop Funding Artisphere

By Peter Rousselot

Peter’s Take is a weekly opinion column published on Tuesdays. The views and opinions expressed in this column are those of the author and do not necessarily reflect the views of ARLnow.com.

Peter Rousselot

In last week’s column, I explained why a new normal has arrived for Arlington’s budget. I concluded that business as usual in setting budget priorities must change. In response, one commenter named “Courthouse Diva” said “[I] love the idea of defining core services — everything does not need to be core.”

Courthouse Diva nailed it.

Arlington needs to develop standards to define core services, and then use those standards to decide which services and programs are core services and those that are at the edge or outside of that core.

How does Arlington handle this now?

For the FY 14 budget now under review, the County Board essentially told the County Manager, “If you think there’s going to be a $50 million shortfall, design a budget that eliminates that shortfall by relying half on spending cuts and half on tax increases.” The manager was then left to recommend a combination of spending cuts and tax increases, using that very general guidance.

How would a core services approach be different?

Under a core services approach, programs and services at the center of the core would have much greater protection from any cuts. The farther out you move from the core, there would be less and less protection. The size of a cut as a percentage of the total expenditures in its category would be greater the farther out from the core.

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Proposed School Budget Maintains Class Sizes

By ARLnow.com

Dr. Patrick Murphy presents his proposed school budget to reporters(Updated at 4:05 p.m.) Arlington Public Schools Superintendent Dr. Patrick Murphy’s recommended FY 2014 budget would keep class sizes steady, would add new school buses and would provide for merit pay increases for school employees, despite a $23.5 million budget shortfall.

Murphy formally unveiled his budget Thursday night at a budget work session with the School Board.

To help close the gap, Murphy’s budget takes advantage of $20.2 million worth of surplus and reserve funds from previous years, and “efficiencies” in custodial staffing, the teen parenting program and gifted teachers, among other programs.

In all, $411.1 million of the $520.4 million budget comes from county tax revenue. Aside from the $20.2 million “carry forward” and $17.6 million in fees, the rest — about 13.3 percent of the budget — comes from federal and state sources.

The budget allocates an additional $10 million in staffing, materials and facilities costs for the nearly 1,000 additional students expected to be enrolled next year. That includes $1.9 million for new trailer classrooms.

The budget also provides $7.2 million for merit-based raises for teachers and other employees. Of that, about $446,000  will come from the state, under a plan to supposedly provide 2 percent raises for Virginia teachers. Of those staff members receiving raises, the increase in pay will average about 3 percent, APS said in a budget briefing for the media.

By maintaining the current class size levels while accounting for the rapid enrollment growth, Murphy says the budget fulfills the school system’s goal of putting students first.

“This budget is a prudent and targeted effort to maintain APS quality and the education that our community values,” Murphy said in a statement. “This budget firmly commits to our students by maintaining current class sizes and to our staff by including a compensation increase, the first step increase in two years.”

APS plans to purchase and staff 6 additional school buses this year. That should prevent another round of controversial bus service adjustment.

The budget also provides for a full-time residency verification specialist. Murphy also proposed the position last year, but it did not make it into the School Board’s final budget. Currently, APS only employs a part-time residency verification specialist for the entire 22,613 student school system.

Murphy said a full-time residency verification specialist could help identify students who are attending Arlington Public Schools but whose parents don’t live here.

“With the growing enrollment we have, we need to make sure we’re serving our kids here in Arlington,” he said. “I think there’s a concern that people are attracted to Arlington Public Schools. We need to monitor that.”

Other additions in this year’s budget include a new security coordinator, technology upgrades, athletic trainer who specialize in concussion management, and dropout prevention coordinators.

The “efficiencies and reductions” — including cuts in custodians, high school gifted teachers, the teen parenting program, and administration — will eliminate 61 positions and save $7.8 million. With the school system continuing to grow and hire — some 300 teachers were hired last year — Murphy says those impacted by the cuts will be reassigned elsewhere in APS, not laid off.

With Murphy’s proposed budget, the per-pupil cost in Arlington will rise from $18,675 to $18,709, although that could drop to $18,405 if the School Board elects not to use one if its reserve funds.

The School Board will adopt the final FY 2014 budget on May 2. Between now and then, APS will hold a number of budget work session and public hearings.

The Right Note: Outrage or Resignation?

By Mark Kelly

The Right Note is a weekly opinion column by published on Thursdays. The views and opinions expressed in the column are those of the author and do not necessarily reflect the views of ARLnow.com.

Mark KellyIt’s a big week in Virginia.

The federal government will see the sequester implemented on Friday, reminding us that despite substantial tax hikes to start this year, we are still far short of balancing our budget.

Our elected officials in Richmond, who for years on a bi-partisan basis raided revenues collected for transportation, have given us a big tax increase to pay for new transportation priorities.

We found out that the Arlington County Manager’s budget will include cuts to public safety — clearly one of the non-negotiable responsibilities of a local government.

We learned that some members of our County Board wanted to nearly double the County Manager’s recommended 3.2 cent real estate tax increase. A 6 cent rate increase would have been advertised if Chris Zimmerman had not been sick with the flu.

In short, as taxpayers, there is a lot to be outraged about these days. But are Arlingtonians outraged?

Here in Arlington, we have seen our tax bills more than double over the past decade or so. Yet, we are informed we cannot afford to pay the same number of public safety officials we paid last year.

We have the money for a swimming pool, but not firemen. We have the money for the artisphere, but not police officers. We have the money to fund about 3,700 county employees — one for every 60 or so Arlingtonians — but we are putting our safety at risk.

The County Manager, who does not live in Arlington, put this budget together and got a $10,000 raise in return. But are we outraged?

A friend of mine emailed me this week and informed me that Arlingtonians were simply willing to continually pay more in taxes for additional services. Based on my experiences attending the annual budget and tax rate hearing, history indicates that my friend is right. Everyone who wants higher taxes and more spending shows up and asks for it. Our Board is only too happy to oblige and identify new ways to spend our money.

But why are Arlingtonians resigned to pay for more but actually get less? In addition to public safety cuts, we continue to pay more in taxes, but don’t meet our ongoing maintenance needs. I am looking forward to the March 27th hearing when we can ask why the Board is willing to finance a trolley but not maintain our emergency services.

Arlingtonians deserve to know why we have to spend more of our tax dollars on vanity projects when we cannot provide the basics.

I hope Arlingtonians will ask the County Board these questions during the budget process this spring and show some outrage rather than another round of resignation.

Mark Kelly is a former Arlington GOP Chairman and two-time Republican candidate for Arlington County Board.

Peter’s Take: The New Normal of Arlington’s Budget Choices

By Peter Rousselot

Peter’s Take is a weekly opinion column published on Tuesdays. The views and opinions expressed in this column are those of the author and do not necessarily reflect the views of ARLnow.com.

Peter RousselotEven Arlington can’t have it all.

How Arlington decides what it can afford says a lot about the realism of our leaders. Are they making the hard choices, or just struggling to preserve the illusion that some choices are unnecessary?

I’ve been thinking about this since I received a political fundraising letter earlier this month saying the following:

“Our goal should be to balance the short-term budget adjustments with the long-term needs of our community. We should ensure that our schools remain among the very best, that we maintain a strong social safety net, and that we continue to provide affordable housing options. We must also continue to make needed capital investments in transportation and infrastructure that will improve the quality of life and protect the future vitality of the community.”

It’s hard to argue that we shouldn’t:

  • balance short-term budget adjustments with long-term needs, or
  • ensure that our schools remain among the very best, or
  • maintain a strong social safety net, or
  • continue to provide affordable housing options, or
  • make needed capital investments in transportation and infrastructure

But, we need to move far, far beyond the framing of this particular fundraising letter and ask ourselves questions like these:

  • What’s a short-term budget adjustment and what’s the new normal?
  • In the new normal, what projects and services should be cancelled?
  • What’s a needed capital investment and by what criteria should need be measured?
  • What must be done to ensure that our schools remain among the very best?
  • When the only way to ensure that our schools remain among the very best is to do without other county services or capital investments, will our leaders step up and say so?

We must define or redefine what our core services are because those are the services that ought to be guaranteed funding. Some of the other services and projects must be placed in a “so sorry, no can do” category. We must take these steps because the likely rate of growth in the value of Arlington’s commercial real estate tax base will be flat or very low for many years compared to the past. This is the new normal.

As the budget season unfolds, I will use this framework to define which specific Arlington services and projects (or categories of services and projects) should be retained, and which should be set aside to adjust to the new normal.

Peter Rousselot is a member of the Central Committee of the Democratic Party of Virginia and former chair of the Arlington County Democratic Committee.

County Board Advertises $1.021 Tax Rate

By ARLnow.com

County Manager Barbara Donnellan presents her FY 2014 budget on Feb. 20, 2013The Arlington County Board voted over the weekend to advertise a higher property tax rate than that proposed by County Manager Barbara Donnellan in her proposed FY 2014 budget.

By advertising the $1.021 rate, the Board will have the flexibility of raising the tax rate up to 102.1 cents per $100 in assessed real estate value. The Board can still, as it usually does, select a lower rate than advertised when it adopts its final budget in April.

Donnellan proposed a $1.003 rate — a 3.2 cent rate increase that would cost the average Arlington homeowner an additional $262 per year. The advertised $1.021 rate — a 5 cent increase from the current 97.1 cent rate — would cost the average homeowner an extra $356 per year (nearly $30 per month, a 5.3 percent increase) over the current tax rate.

The four Board members present for Saturday’s meeting — Chris Zimmerman was home sick with the flu — split the difference between two different rate proposals.

Jay Fisette and Mary Hynes proposed to advertise a $1.011 rate, an increase of 4 cents, citing concerns about taxpayers who might be impacted by the upcoming federal budget sequester.

“I want to send a message… that if others are being called to tighten their belts, that we will exert the same discipline,” Fisette said. He called Donnellan’s proposed 3.2 cent tax rate increase and spending cuts “a really reasonable balance.”

Libby Garvey and Board Chairman Walter Tejada argued for a 6 cent increase, citing uncertainty about how the sequester might affect county finances and the finances of those served by the social safety net.

“I don’t think 4 cents will be enough,” Tejada said. “Sequestration is hanging over our heads. We have to make decisions now and anticipate and prepare. I want to be as responsible as we can for all taxpayers… including the most vulnerable in our community.”

In the end, the Board voted for a compromise 5 cent advertised rate.

“In this climate of economic uncertainty, it is important that the Board maintain some flexibility in setting the tax rate for Fiscal Year 2014,” Tejada said in a statement. “In the coming weeks, we will engage intensively with our community on how best to balance necessary service cuts with a reasonable tax rate increase. “

The Board also voted to decrease solid waste rates and fees and certain permitting and park fees. After being adopted in April, the final rates and fees set by the Board will go into effect on July 1, 2013, the start of the county’s 2014 fiscal year.

Artisphere, Two Community Centers Could Be on Next Year’s Chopping Block

By ARLnow.com

The Fenwick Center (photo via Google Maps)Arlington County Manager Barbara Donnellan says she and her staff will be evaluating several county facilities for possible changes or closure next year.

Among those expected to be evaluated are the money-losing Artisphere, two community centers and two Department of Human Services facilities.

In her budget message to the County Board, Donnellan said “potential facilities to be evaluated” include the Madison and Woodmont community centers in north Arlington, the Edison Complex near Virginia Hospital Center, and the Fenwick Center on S. Walter Reed Drive.

Madison Community Center (photo via Google Maps)“As our population changes and as technology changes the way we deliver services, I believe we have many opportunities to do things differently, particularly in the area of buildings and facilities,” Donnellan said. “I have asked staff to begin evaluation of some of our facilities that require significant capital investment or are underutilized — with one of our initial tasks being how we engage the community and stakeholders in these discussions.”

Possible recommendations for the facilities could include changes in use or closure, said Arlington County spokeswoman Mary Curtius.

“The evaluations will look at a full range of options, including no change in use, repurposing these facilities for a new use (County or otherwise), or potentially closure — but it’s preliminary to speculate until the process is complete,” she said. “As the Manager’s message noted, one of the initial starting points will be to get public input — and other evaluation factors will include utilization rates and building condition and age, among others.”

Artisphere signAlso on the chopping block is Artisphere, the Rosslyn-based cultural center that opened with high expectations in 2010. As previously reported, Donnellan is including $1.8 million in taxpayer funding for Artisphere in her proposed FY 2014 budget, but warning that she’s “assessing its performance and programming model” for next year.

“We’re going to evaluate the fiscal sustainability,” she told County Board members on Wednesday. “I’m forcing them to reevaluate how they operate. It’s an expensive operation to continue and I need to evaluate it to make sure it’s sustainable.”

Photos (top, middle) via Google Maps

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