Long Beach Unveils Proposed $83.9M Budget

The City of Long Beach this week released a proposed budget for 2013-14, posting a pdf of the 168-page document on its website. Public hearings for the $83.9 million spending plan are scheduled for May 7 and May 21 at City Hall.

The following is City Manager Jack Schnirman's budget message that introduces the document:

It's been an extraordinary year.

When the new City Council placed its confidence in this new administration and we all took office in 2012, we knew we inherited a big challenge. Year one was eventful and truly action-packed – full of reforms, initiatives, and bookended by two unprecedented crises – the fiscal crisis and Superstorm Sandy.

In our first few months, we uncovered just how severe a fiscal crisis we inherited when we walked through the door. Remember, in 2011, the previous City Council had to hold an emergency meeting late in the year, borrowing money just to make payroll. Moody's had downgraded the City's bond rating an unprecedented five levels. Everyone had been misled to believe that the finances were in order when in fact the City was truly on the verge of bankruptcy.

We got to work right away. We declared a fiscal crisis, immediately increased scrutiny and accountability, and as a result, cut back spending. We made a series of reforms to streamline government, including reorganizations and consolidations. Management salaries were slashed and departmental budgets were cut dramatically. Management employees also started paying into their health care – believe it or not, this was a first for all City workers.

We worked with our labor partners to right size the workforce through a combination of early retirement incentives, personnel reductions, attrition, and negotiated agreements.

This new City Council gave us clear direction - to completely change the culture of this City government. Where the previous administration never denied any purchase requests, the new administration would only allow for absolute essentials. Gone were the days of petty cash and unnecessary, outrageous overtime. In fact, prior to Superstorm Sandy, overtime was down more than a million dollars year-over-year (and that’s excluding Hurricane Irene). Consistent with this City Council’s agenda of transparency, the following is a simple, accessible, and easy-to-read budget narrative, a true example of open government. It should be noted that this is the first City administration to ever prepare a budget narrative.

We did what we said we’d do. We stopped the bleeding, and the City Council passed Long Beach’s first balanced budget in years. As a result, we rebuilt the City’s credibility with ratings agencies and Moody’s removed the immediate threat of another downgrade.

However, we were still left with the unfortunate task of paying back a $10M+ inherited accumulated deficit - through a temporary charge on a separate tax line. As frustrating as it is, particularly after the storm – when we’ve all been hit hard, until and unless we get state legislative tax relief, we have to pay the bill for the deficit we inherited.

We’ve been through two unprecedented crises together in 2012, and even when bruised, we came through stronger. We have an ambitious agenda for 2013, full of recovery and rebuilding – and working together, Long Beach will have much better days ahead.

While we continue along the road to recovery both fiscally and physically, we’re looking forward to a wonderful year of rebuilding Long Beach safer, smarter, and stronger.

In closing, I would like to sincerely thank our budget team who worked tirelessly to help prepare this document.

Very truly yours,
Jack Schnirman
City Manager

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