A hearing Thursday on $3.8 million in proposed cuts to the county’s Health and Human Services budget led to tense moments between County Council President George Leventhal and county budget Director Jennifer Hughes.
Leventhal earlier this week came out strongly against some of the cuts included in County Executive Ike Leggett’s $51 million “budget savings plan,” suggesting that Leggett should instead look to trim salaries of some of the county’s top-level administrators.
On Thursday, Leventhal again criticized the executive branch for proposing the cuts about two months after the council formally approved the full $5 billion county operating budget for fiscal year 2016. Many of the proposed cuts would impact programs council members tacked on to the budget, known as the reconciliation list, after Leggett submitted his budget proposal.
“It seems to me that before the executive branch proposes to eliminate something, it would be warranted to have a discussion,” said Leventhal, who also chairs the council’s Health and Human Services Committee. “If we’re going to cope with a financial shortfall, we really ought to do it as one government.”
Leventhal, who in a memo earlier this week accused the executive branch of not implementing some items in last year’s budget, said Thursday that Leggett should seek to find budget savings in the spring, before some county employee contracts are ratified.
“We have an awful lot more tools available prior to the ratification of contracts when we have the entire budget ahead of us,” Leventhal said. “Having these conversations in the spring of [2016] is a far preferable way to provide good financial management than what we’re doing here and now.”
Leggett believes the council must find at least $50 million in budget savings before work even begins on next fiscal year’s budget in order to cope with tax revenue lost due to the outcome of the Wynne case and lower-than-expected income tax revenue.
In a memo Leggett sent to Leventhal Thursday, the county executive said the revenue shortfall between last fiscal year and this fiscal year is expected to be nearly $60 million.
Hughes, who during the Thursday hearing was sitting at the table in front of the council dais with Health and Human Services Director Uma Ahluwalia, attempted to counter Leventhal’s comments but was promptly cut off.
“I really want to proceed in a collegial way, but I called on Ms. Ahluwalia,” Leventhal said.
Hughes stared at Leventhal and shook her head. In May 2014, the two got into a heated exchange during a council budget session over technology issues.
When Hughes was allowed to speak, she told Leventhal and the committee the executive branch didn’t target council priorities in the budget savings plan.
Leggett recommended cutting more than half of the council’s reconciliation list from the spring, about $10.4 million of the total $18.2 million.
“We absolutely did approach this in a collegial way,” Hughes said. “We spoke to your staff repeatedly, attempted to get recommendations, any suggestions that they might have, that they might include in the savings plan.”
The memo from Leggett to Leventhal echoed that point. Leggett wrote that he “would like to set the record straight on a number of issues that you have raised.”
Leggett said he briefed the council on the county’s significant budget shortfall on June 30.
“Additionally, you and I have had several earlier conversations on these fiscal matters where I specifically spoke about these shortfalls and their effect,” Leggett wrote. “I am confused as to why you would now state that you were not aware of the magnitude of this shortfall.”
Leggett also said that as he was considering a “reasonable increase” above the county’s Charter tax limit earlier this year, Leventhal and several of his colleagues “made it very clear to me that you would not approve a property tax increase above the Charter Limit.”
As the committee went item-by-item Thursday and recommended against most of the proposed cuts—including a $970,000 supplement for groups that provide services to the developmentally disabled—Hughes warned council members that some cuts would likely have to be made at some point.
It’s possible the council will propose alternative cuts in the next few weeks to help meet the $50 million target. But four days into committee-level hearings on Leggett’s proposal, council members have recommended against many of the cuts prescribed for each county department and agency.
Hughes said that even with no compensation increase for county employees in the fiscal year 2017 budget, the county is facing a $175 million budget gap.
“That’s why we are dealing with it now rather than later,” she said.
Later in the meeting, when the CEO of the county’s Arts & Humanities Council began speaking about cuts to her program’s budget, Leventhal interjected.
“I appreciate it when people are called on by the chairman and then speak,” he said, an apparent dig at Hughes.
The council is expected to make final decisions on Leggett’s proposed budget cuts at its July 28 meeting, before beginning an August recess.
