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John Howell writes, “One of the most challenging times was in 2007 and 2008 when state aid was dramatically cut. The options were few and, through a combination of a modest tax increase, budget cuts and sacrifices made by municipal employees – unions agreed to furlough days, deferred time off and pay freezes – the city was able to pull through.”

However for whatever reason Mr. Howell you forgot to mention so many more important fact that allowed the city to “pull through”. The first is that the city began the process of raping the school department of revenue.

Beginning in the 2007/2008 budget the school department budget has been level funded for a decade. In 2010 the Warwick school department local property tax revenue was cut by 5 percent through a special onetime law enacted by the General Assembly. The result, the school budget was reduced from $123,968,468 to $117,769,632 or a total of $6.2 million.

Where did that money go you might ask? You guessed it, straight to the city side of the budget.

In additional to that Mayor Avedisian increased property taxes each and every year to increase city revenue from $63,927,230 in 2007 to $78,525,638 or a $14.5 million increase in revenue.

But wait there’s more. From 2007 through the 2010/11 fiscal year the mayor and the City Council raided the rainy day from to the tune of $15.1 million.

Since 2008 the City side of the budget has been allocated 96.6% of all new property tax dollars collected, that’s $40,067,813. The schools were given the remaining 3.4% or $1,417,637 in new revenue.

And yet there is still more. Even through Ernie is quick to point out municipal union employee cuts and sacrifices, an analysis of the 100 Level employee salary, Ot, sick time, pension and healthcare benefits show that these costs increased in the 3 year period from 2007 to 2009 from $48,281,999 to $50,258,262 or a $1,976,263 increase. Since 2010 to today those same line items have increased by 21 percent or $10.1 million.

In the meantime the percent of the General fund budget allocated to Retired employee expenses has grown from 19% or $18.5 million in 2004 to $41.1 million or 28% of the budget today. To put the 28% number in context, Warwick spends more money on retired employee benefits then the worst City in California San Jose, which is in the midst of a severe financial crisis.

Even though Warwick Taxpayers have paid $445,165,042 in property taxes to pay for retired employee benefits sine 2004, the Actuarial Accrued Liability has reach $1,039,033,669. THAT A BILLION DOLLARS!

And finally, in the last Ten Years, 52% of all new property taxes dollars allocated to the City Budget, that’s $13,610,110, was paid for retired employee expenses. The other 48% or $12,772,206 was spent on active employee benefits. Incredibility, in the last ten year all other spending in the city was cut by $622,312.

Doesn't take a genius to pull through a financial crisis when you forget about every other priority in the city and enact every gimmick and one time revenue infusement to balance your budget.

From: After 18 years, finance director returns to preferred career

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