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Prepared Text of Syracuse Mayor Stephanie Miner's State of the City Speech2

Prepared Text of Syracuse Mayor Stephanie Miner's State of the City Speech2

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Published by The Post-Standard
Syracuse Mayor Stephanie Miner gave her annual State of the City address at 6:30 p.m. Thursday, Jan. 27, 2011.
Syracuse Mayor Stephanie Miner gave her annual State of the City address at 6:30 p.m. Thursday, Jan. 27, 2011.

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Published by: The Post-Standard on Jan 28, 2011
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01/28/2011

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1Office of the Mayor
Stephanie A. Miner, Mayor2011 State of the City AddressEverson Museum
 – 
Hosmer AuditoriumJan. 27, 2011
 
Good evening. Thank you for joining me for my second State of the City Address.Thank you Councilor Kessner for such a warm introduction. Jean has been an excellent addition to the Council thisyear, particularly in her advocacy for neighborhood preservation and for the homeless and housing vulnerable.I am also pleased to recognize our colleagues on the Common Council: President Van Robinson, Majority LeaderKathleen Joy, Minority Leader Ryan McMahon, Majority Whip Tom Seals, Councilors Pat Hogan, Lance Denno,Nader Maroun and Matt Rayo.
I would be remiss if I didn’t recognize Utica Mayor David Roefaro, who has joined us t
his evening. He has been asolid partner as a fellow member of Mayors Against Illegal Guns and in advocating for reform that will benefit
Central New York. And of course, it doesn’t hurt that he makes delicious Chicken Riggies. My staff still talks about
them.Chancellor Cantor could not join us this evening as she has business with the SU Board of Trustees in Florida, but she
 
sent her husband Steve Brechin and Dean Doug Biklen from the School of Education on her behalf.I would also like to thank the members of our state and federal delegations and their representatives for attendingtonight.The County Executive, Joanie Mahoney, is here with her senior leadership team. It has been a pleasure to work withthe County Executive and her team this year and I am confident the spirit of cooperation and collaboration wefostered in 2010, particularly in charting a new course with a historic sales tax sharing agreement, will continue in themonths and years to come because we both have the same goals in mind
 – 
a strong Syracuse and a vibrant OnondagaCounty and region.And of course, I thank Steven Kern and the Everson Museum staff for hosting us here tonight in this wonderful venue,the Hosmer Auditorium. The Everson really is a one-of-a-kind architectural masterpiece.Last year, I ended my address talking about the fiscal storm approaching the City of Syracuse. And this year that iswhere I begin. As we all know, our country is in the midst of a fundamental economic change. As a result of that, andlong-standing economic trends, Syracuse today is facing unprecedented fiscal challenges
 – 
rapidly rising costs which
 
are out of our control, stagnant property tax revenues, and declining aid from the federal and state governments.New York Times columnist Th
omas Friedman recently aptly described the situation when he wrote: “We are leaving
an era where to be a mayor was, on balance, to give things away to people. And we are entering an era where to be aleader will mean, on balance, to take things away from p
eople. It is the only way we’ll get our fiscal house in order  before the market, brutally, does it for us.”
Yes, we will have to, by necessity, and by design, change the culture of our government through shared sacrifice,innovation and investment to ensure a bright future. Tonight I give you my solemn word that we will use our
 
 
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challenges to seize the opportunity that inevitably goes to the bold. If we work together, and you stand with me, Ipromise you we will look forward
 – 
and move forward
 – 
together.I think it most appropriate to start with our own fiscal decisions. Even prior to the announced State budget deficit, Iwas aware of the financial challenges facing our City. To that end, since day one of my term, I have made it a priorityto cut costs.Since January of last year, I have reduced the number of funded City positions by nearly 200. More than 90 positionswere eliminated in the budget for the fiscal year that began July 1
st
. In addition, 94 positions have been vacated as aresult of the recently implemented early retirement incentive program. While some small number of these positionswill have to be refilled due to operational needs
 – 
(and refilled at a lower salary, I might add)
 – 
these two initiativeswill result in a permanent salary savings of approximately $7 million per year.Another area of savings that has been reviewed from day one, and has received a great deal of media attention, hasbeen overtime. Let me be abundantly clear: across non-uniform departments, we were able to save $1.1 million
 – 
 nearly a 30 percent decrease
 – 
in overtime costs in 2010 versus 2009 due to the diligence of our department heads.DPW alone, despite record snowfall, reduced its overtime costs by nearly 44 percent, saving more than $800,000.The Syracuse Police Department has also reduced its overtime costs
 – 
$1.1 million in non-reimbursed overtime. And
while the Fire Department’s overtime increased, it did so because we held a number of vacancies open. This has
resulted in a net savings because we did not have to pay salary costs for these positions.As a result of this hard work, I am happy to report to you that for the 2009-2010 budget year, while we were
 
 projecting the use of $24.9 million in fund balance, we used just $9.6 million of our “rainy day” reserves – 
a savingsof $15.3 million
 – 
because of our fiscal diligence.Additionally, while others have given lip service to consolidation, or even fought against consolidation, myadministration has suggested it, fostered it, and accomplished it. We have entered into cooperative relationships withother levels of government, resulting in permanent savings for the City taxpayer: from entering into an agreementwith the County to handle our mailing services, to sharing the costs of an arborist, and agreeing to merge our
 purchasing departments. So after years of talk about consolidation, we’ve done it.
 
We also initiated, and are now in the midst of, a pilot project to merge management of the City and School District’s
information technology depar
tments. By doing so, we reduced administrative costs, eliminated the City’s IT Director 
position, and shared resources with the School District. Again, all with the result of realizing savings for Citytaxpayers.Despite the aggressive steps my administration has taken to cut costs, we are beholden to Albany to help us right ourfiscal ship.
Because of Albany’s unfunded mandates and irresponsible spending decisions, we face multi
-milliondollar deficits for years to come. The day of reckoning is not coming; it has arrived.We all know local governments and school districts throughout the State are heavily dependent on State aid to fundtheir operations. Syracuse is no exception. Of our combined 2010-2011 City and School budget of $633 milliondollars, $339 million comes from Albany.
This amounts to 53% of the City’s total revenues.
So when Governor Cuomo and Legislative leaders warn about a $10 billion dollar budget gap facing the State, theCity and the School District must brace for what appears to be inevitable significant cuts.On the City side of our budget, addressing these State aid reductions will not be our only task. These reductions willbe overlaid upon other structural multi-million dollar budget challenges facing us in the upcoming year. Some of themost severe include:
An unresolved structural revenue gap in this year’s budget, in which current expenditures outpace current
revenues by $16 million.The short-term loss of $10 million in local sales tax revenues in 2011 as a result of the new sales taxdistribution formula
 – 
though, we will reap the benefits of the new formula for many future years.A $3.8 million increase for previously negotiated employee and retiree health benefits, based on a projected8.8% increase in local health care costs.
 
 
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And a $9.4 million increase in pension billings from New York State between now and 2012, with somecontribution rates increasing from 55% to 88%, depending upon the specific plan.Increasing property taxes to solve these challenges in this time of national economic downturn is not an acceptable
answer. Moreover, all one needs to do is see that Syracuse’s average assessment for a single family home is $69,906
and you immediately understand that our families cannot afford any further increases. Therefore, we must find waysto cut expenditures to bring our spending plan into balance.However, the ability of our City
 – 
or any City in the State
 – 
to address financial challenges of this magnitude on itsown is limited by constraints of the State laws under which we operate.Our City
 – 
again, like other cities in the State
 – 
is burdened by State laws which hamstring efforts to reduce costs in
what might seem to some to be a large “controllable” expense – 
namely, the salary and benefit packages for Cityemployees. These costs are substantial and typically account for about 70-75 percent of all municipal expenditures.However, for these labor costs to be reduced, fundamental changes must be made in the rules that govern the labornegotiations between public employers and municipal employees.Recently, I served as a member of the New York State Conference of Mayors Task Force on Mandate and PropertyTax Relief, which was charged with developing a set of recommendations to address soaring property taxes and toreduce the cost of government. The major cost-saving recommendations of the Task Force sought to bring publicsector salary and fringe benefit packages in line with those offered in the private sector. Specific recommendationsinclude:a temporary freeze in public sector wages so we can manage through the fiscal crisis;reforming the current pension system;and amending the compulsory arbitration law to balance the needs of public sector workers with the
taxpayers’ ability to pay.
 Given the magnitude of the financial challenges before us, unless these types of proposals are implemented,municipalities across New York will have no choice but to dramatically reduce their workforces and cut services. Weneed only to look to what is happening in Camden, New Jersey to understand how real these cuts can be. Camdenrecently laid off nearly half of its police force and one-third of its firefighters.So we ask Albany to hear our cries and not waste this crisis: give us the reform we so desperately need so we have thetools to bring local spending under control.We understand how serious the situation in Albany is. We are not asking Albany to spare us from cuts, but instead of hamstringing us with unfunded mandates, give us the ability to responsibly manage our finances. I have alreadystarted meeting with our state legislative delegation and my message has been consistently clear: use the crisis to
 
implement long overdue reforms allowing us to manage ourselves. Let us capitalize on the reform agenda thatGovernor Cuomo has so forcefully and articulately brought to Albany and make sure that Syracuse is a beneficiary of reform too.Clearly, money is tight, but we must not forget the important lessons of our past
 – 
if we stop investing in the future,
we will have no future. Progress is not inevitable. It’s up to us to create it.
In these difficult economic times, we find not just intense challenge, but also extraordinary opportunity. And whilethe harsh financial realities are sobering, we must not allow anxiety and apprehension to stifle our thirst for innovationand creativity. Indeed, without embracing innovation we will not successfully navigate this fiscal storm to a brighterfuture. Sure, we could choose a path of austerity without vision, and fiscal prudence devoid of inspiration, in a vainattempt to survive.You see, Syracuse has a choice: bend to the forces of derision and self-pity, or boldly innovate for progress. In manyways, the biggest challenge we have is not financial or structural, but rather the challenge of our ingenuity. It is thevexing challenge to use the obstacles in front of us as tools to imagine and create a stronger, brighter future for all of us.

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