- The Fresno Bee
Thursday, Jun. 28, 2012 | 12:16 AM
Fresno Mayor Ashley Swearengin has moved to Plan B as time runs out on efforts to approve next year's budget.
Swearengin has drafted a revised budget for 2012-13 that depends on higher-than-expected sales tax revenue, outsourcing of the residential trash service and savings from a slightly smaller police force.
But the new plan still hinges on the one thing that apparently derailed Swearengin's original month-old budget: Big wage/benefit concessions from the police union that are far from a sure thing.
The result is continued uncertainty about a budget drama that surely ranks among the most complicated in Fresno history.
Swearengin's revision is slated to be presented to the City Council at 9 a.m. today at a special meeting. Council members will begin with a closed-door session with the city's labor negotiator.
"We see a path forward over the next 12 to 60 months," Swearengin said Tuesday afternoon. "The next 12 months definitely are the hardest. I think this [revision] is a reasonable approach. Every year past that, it gets easier."
Swearengin in the spring said the city was looking at a $16 million general fund budget gap. The general fund is money spent at the discretion of city officials. About 90% goes to personnel costs and debt service.
The city has had budget woes for more than three years, but this challenge is particularly serious.
Swearengin on May 29 presented a fiscal year 2013 general fund budget of $232.7 million. But the budget was balanced only on paper since it counted on an estimated $12 million in compensation concessions from labor groups.
Swearengin and City Manager Mark Scott have spent weeks in unsuccessful talks with the unions. At the center of the talks is the Fresno Police Officers Association, the city's most powerful union.
The police have a contract that runs through June 30, 2015. Swearengin wants at least $4.2 million in police concessions. Any give-backs would have to be voluntary.
FPOA President Jacky Parks has suggested a package of one-year concessions worth nearly $4.2 million. In return, Parks wants a one-year contract extension.
Parks has said his members are unlikely to approve millions in concessions without something of value in return. Parks expects to call a general membership meeting later this week.
Swearengin rejects any extension. She unveiled earlier this year a Fiscal Sustainability Policy that emphasizes short-term labor contracts as key to a reformed City Hall business model.
The clock continues to tick during negotiations, further complicating things.
The city charter requires the City Council to approve a balanced budget by the start of a new fiscal year -- Sunday for 2012-13.
The council spent mid-June conducting half-hearted hearings on a budget that, because of the continuing police talks, had no firm foundation.
Last Wednesday, the council suspended the hearings for a week, hoping the budget picture would begin to clarify.
But the picture is still murky because the police talks remain inconclusive.
Swearengin's revision is an attempt to resolve the council's dilemma.
Two other factors add to this year's budget complexity.
Swearengin and Scott have said the city could be forced into a declaration of fiscal emergency if labor talks fail. The declaration could make it easier to open contracts to negotiated savings, but also could lead to court challenges.
The threat of this declaration is supposed to be a bargaining chip in labor talks. However, it's uncertain if city officials believe they could prove in court that the city faces a true financial emergency.
Some council members also are leaning toward doing everything possible to avoid a contract extension with FPOA.
They say contract talks with the police will be more fruitful in two years, when the police contract's no-furlough, no-demotion clause expires. These council members would opt for relatively short-term budget pain if it means long-term budget reform.
Swearengin's revised budget is notable for what it doesn't say.
One or more fire stations aren't on the chopping block.
The five proposed sites for senior hot meals are untouched.
Bondholders aren't being asked to skip a payment or two.
The proposed return of the police auditor position remains on the table.
The door hasn't been shut on an emergency loan from an unused reserve in an enterprise department.
These hint at the range of uncertainties that surround the budget.
Swearengin's revised budget also anticipates a smaller reserve in the city's liability insurance program, more administrative cuts, a break on retirement contributions and a one-year reduction in payments to the deficit fund recovery program.
The council also is scheduled to discuss the budget Thursday afternoon.
