At first blush, Auburn taxpayers should be happy with the budget presented by City Manager Mark Palesh.
In these tough economic times, not having a property tax increase is good news #- especially when it looks as if there will be a limited impact on city services. What is more remarkable is that no property tax increases have occurred for three straight budgets. The big question is whether what is outlined is truly realistic?
The biggest premise of a no tax increase budget and that doesn't raid the city's reserves, is that Auburn's labor unions will agree to no wage increases in the coming year #- in a time where many contracts are either up or coming up. Two different unions have already filed to go to arbitration #- not a good sign when it comes to going without any form of salary increase.
That may be the biggest problem in this year's proposed budget. At his State of the City speech in March, Palesh made it clear that the city council wanted no tax increases #- who would, especially when two councilors (William Graney and Matthew Smith) are up for re-election? But is that really practical and realistic?
If the past is any indication, no. Traditionally public employee labor unions get some form of an increase, unless the union makes a major concession. One city hall source has suggested that the CSEA has already offered to take no pay increase this year in exchange for an elimination of the residency requirement, and was flatly turned down in record time by the city.
It can be suggested that times are tough and that everyone has to give #- on the state level, where there is a threat of some 8,400 jobs being cut, that argument isn't working, with the Public Employees Federation not agreeing to any givebacks. At this point, Auburn has not made a “share the pain” argument (i.e. taxpayers get a small tax increase, in exchange for no wage hikes by unions). Why would any union, at this stage, agree to no increases, especially when still in negotiations?
The mayor and the city council should ask city staff for a list of any communities that have had their unions not accept any type of raise #- any time in the last decade. If they can't find any examples it is likely that if the unions do take the city to arbitration they will likely get some form of an increase #- even a minimal cost of living allowance will likely shatter the basic foundation of the budget being presented by Palesh.
Cosentino is a former mayor of Auburn and can be contacted at cozguytho@aol.com
The biggest premise of a no tax increase budget and that doesn't raid the city's reserves, is that Auburn's labor unions will agree to no wage increases in the coming year #- in a time where many contracts are either up or coming up. Two different unions have already filed to go to arbitration #- not a good sign when it comes to going without any form of salary increase.
That may be the biggest problem in this year's proposed budget. At his State of the City speech in March, Palesh made it clear that the city council wanted no tax increases #- who would, especially when two councilors (William Graney and Matthew Smith) are up for re-election? But is that really practical and realistic?
If the past is any indication, no. Traditionally public employee labor unions get some form of an increase, unless the union makes a major concession. One city hall source has suggested that the CSEA has already offered to take no pay increase this year in exchange for an elimination of the residency requirement, and was flatly turned down in record time by the city.
It can be suggested that times are tough and that everyone has to give #- on the state level, where there is a threat of some 8,400 jobs being cut, that argument isn't working, with the Public Employees Federation not agreeing to any givebacks. At this point, Auburn has not made a “share the pain” argument (i.e. taxpayers get a small tax increase, in exchange for no wage hikes by unions). Why would any union, at this stage, agree to no increases, especially when still in negotiations?
The mayor and the city council should ask city staff for a list of any communities that have had their unions not accept any type of raise #- any time in the last decade. If they can't find any examples it is likely that if the unions do take the city to arbitration they will likely get some form of an increase #- even a minimal cost of living allowance will likely shatter the basic foundation of the budget being presented by Palesh.
Cosentino is a former mayor of Auburn and can be contacted at cozguytho@aol.com

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