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On May 11th, Richmond adopted its FY2021 budget. As you all know—since I never stop talking about it—the City’s budget process is one of my most favorite things, and I look forward to it all year long. This year’s process was, of course, different and unsatisfying. Gone were hourslong meetings, fights over process, jabs at the Mayor’s administration, and—most disappointing to me—gone were the departmental presentations. I love, love, love hearing each department head get up and defend their slice of the budget pie while pitching City Council on why their department rocks. But with The ‘Rona rewriting every portion of public and private life, budget season this year consisted of just a few video meetings, an anemic public hearing or two, and an agreement between both the Mayor’s administration and City Council to have regularly scheduled check-ins and propose budget amendments as necessary. This process sounds fascinating (to…me?), and, if I’m being optimistic, looks kiiiiiind of like the City is gifting us with an entire year of budget season!
That process is outlined in RES. 2020-R035, which sets up a two-stage budget review process the City will use moving forward into the next fiscal year. City Council will take up the resolution at their May 26th, 2020 meeting and hope to kick things off almost immediately.
But, like, do we really need this? Are things that uncertain?…is a hilariously rhetorical question I ask. At the moment, without a ton of data, the Mayor projects a $38.5 million general fund revenue decrease. That’s about a 5% cut from the $782 million budget he proposed back in March, and, if I’m being honest, some of the assumptions made to get to that number feel pretty rosy—a 5% decrease in sales tax, a 10% decrease in the meals tax, a 10% decrease in the admissions tax. I mean, when even is the next time folks will be able to host an event in Richmond that charges admission? Also, keep in mind these projections were set, like, in the unknowably distant past of March—without even a full month of lockdown under our collective belts. I don’t think anyone, anywhere in the country, is looking around expecting revenues to rocket right back to pre-coronavirus levels whenever we all emerge from our quarantines, but who knows!
And that uncertainty and lack of good, current data is exactly why the Mayor and City Council have decided to put together this regularly occurring budget check-in process.
RES. 2020-R035 creates a two-stage process to get updated financial information (expenditures, revenues, overall financial trends, that sort of stuff) into the hands of decision-makers so that they can, if necessary, propose and adopt budget amendments.
Stage One: the technical review! Assuming the resolution passes as currently written, this team will start meeting monthly in June and is tasked with reviewing data, creating monthly reports, and proposing budget amendments based on “priorities identified by the Mayor and the Council.” This team is comprised of the Director of Budget and Strategic Planning, one of their employees, the Deputy Council Chief of Staff, one of their employees, and other folks like the Director of Finance or the City Assessor as needed. One interesting note that reveals a bit about the relationship between Council and the Mayor’s administration: “Consensus between the administrative staff and the Council staff on each report will be sought, and any disagreements between administrative staff and the Council staff will be identified in the report.” Scandalous.
Stage Two: the policy review! These folks will meet quarterly starting in September. They’ll accept or trash any budget amendments that come out of the technical review group, and, if they can get consensus between Team Council and Team Mayor, they’ll recommend those amendments for adoption. The Mayor would then submit the amendments, and Council would then vote on them. This group is compromised of the Mayor’s Chief of Staff or the CAO, the Director of Budget and Strategic Planning, the Council Chief of Staff, the Deputy Council Chief of Staff, and other folks like the Director of Finance or the City Assessor as needed. So more bigwigs, but still lots of overlap with the technical review team.
A note about amending the budget: The City Charter has some things to say on how to go about doing that, and the process differs for amending up vs. amending down. If there’s excess money (LOL!), Council can, with six votes and “the recommendation of the mayor,” amend the budget to spend that extra cash. However, if there’s a deficit (obviously much more likely in the current coronacrisis), “the mayor shall report to the city council without delay, indicating the estimated amount of the deficit, any remedial action taken by the mayor[,] and recommendations as to any other steps to be taken. The council shall then take such further action as it deems necessary to prevent or reduce any deficit, and for that purpose it may by ordinance reduce one or more appropriations.”
As per always, I am not a lawyer, but it certainly reads to me that in a deficit situation Council has a lot more leeway to kind of do whatever it wants to fix the problem. Which is why, from the Mayor’s perspective, having his folks in the room and their potentially-differing opinions noted in the reports is important to the process.
“OK,” I hear you ask, “but how can I, Citizen of Richmond, insert myself into this process?”
One of the things I love (and also maybe hate sometimes?) about Richmond’s government is that so much of it takes place right out in the open. In our neighboring localities—which are not independent cities and that means actual, legal things in Virginia—it’s often hard (or impossible) to put yourself in The Room Where It Happens. In the City, while it’s messy, there’s almost always a way to yell about a thing in public. In fact, one of the “specific purposes of the budgetary reviews” is:
To inform the Mayor, City Council, and ultimately the citizens on the anticipated fiscal position of the City relative to the FY2021 budget and any corresponding adjustments that may be needed to that budget.
The citizens! That’s us! And while I’m not sure if either the technical review team (maybe!) or the policy review team (probably not!) will collect any sort of public feedback, you can be dang sure that City Council will—nay, must—on any proposed budget amendments that make it to the dais. So if I were to advise on keeping one’s powder dry, I might suggest looking for when budget amendments hit City Council agendas. Or, heck, your Councilmember’s job is literally to listen to you. If you see a need in the City that begs for more funding or should have its funding protected, holler at them whenever you’d like!
No one knows what the next year, quarter, or even month will bring—that goes for the City’s budget, sure, but also just about everything else, too. The proposed two-stage budget review process is a way for Richmond to chart some kind of course forward through a sea of compounding unknowns. Unfortunately, if I were to guess, I’d say that the next several technical review meetings will be tense affairs, and the first policy review meeting, absolutely brutal.
Hold on to your butts, keep your Councilmembers close, and, remember, no one really knows what the future holds but we gotta pay attention as it unfolds.