Mayor's Veto May Result In Compromise

As reported earlier today, Mayor Sebastian Giuliano vetoed the city budget proposed by the Common Council last Thursday.

In a written statement accompanying his formal veto, the Mayor listed five specific reasons for rejecting the budget. He indicated the Council might be unaware of a $2.6 million appropriation from the reserve fund to adjust Police salary and overtime as a result of collective bargaining agreements. He also noted a $1.8 million dollar decrease in revenue in the next fiscal year due as Aetna prepares to move its operation out of Middletown. In addition, the mayor points to nearly $100,000 in revenue overprojections he feels the Council has made in real estate tax revenues and licenses. The mayor also feels that the projected sum of $1.5 million dollars for the sale of Cucia Park to the Army is misguided. Finally, he feels that projected savings from "voluntary concessions" is unrealistic after the Council rejected the union concession package.

"I cut spending as far as I could cut," the mayor said in an interview this afternoon. "I negotiated a million dollars in concessions from city unions, and I could only get the budget down to a 1 mil tax increase. The Common Council added all the cut spending back. They spurned the $1 million in concessions, and they proposed no tax increase. Where's the money coming from."

After hearing criticism from his Democratic opponent in the mayoral race Giuliano indicated that the tax increase of 1 mil is a minimal increase.

"It's an average of $160 a year per household," the mayor claimed. "That's four dollars a week for the average taxpayer. You'd give up a cup of coffee and a donut a week. You don't want to give that up, and in return you'll choose financial chaos in the next fiscal year."

Democratic majority leader Thomas Serra, who had only just reviewed the mayor's veto and counterproposal, was cautious in his assessment.

"We'll caucus and discuss it," Serra said. "It looks like he's proposing a 25.5 mil rate, which is no increase. If that's the case, it will be how comfortable the caucus is with the lateral changes. We thought the mayor's cuts were completely responsible, but we were worried about the disparity in furlough days in the different unions, and the loss of funding for Police officers. We believe the citizens of Middletown cannot bear an increase in tax payments."

The mayor also indicated there might be room to compromise.

"If we all sit down we might be able to find a way out of it," the mayor said. "But if you say you're fiscally responsible you can't use a one-time cash receipt to help solve a problem that will come back year after year. You know who deals with it in the end - the taxpayer."

This is the second time the mayor has vetoed a budget. Last year he objected to the use of projected funds from the sale of the Remington Rand building. That sale did not occur as planned.

The Common Council can override the mayor's veto with a two-thirds vote of Council members. The Council has 10 days to consider the veto and call a meeeting to adjust the budget. The Democratic members plan to caucus immediately to consider the veto and possible adjustments to the budget.