New Haven Mayor Justin Elicker unveiled a $569 million budget proposal Monday, while also calling upon both Yale University and Yale New Haven Hospital to contribute more financially to their host city.
If approved, the spending plan would mean a $12.5 million, or 3.5 percent, increase over the current city budget, which is at $556.6 million.
The projected mill rate under Elicker’s plan would be 44.51, which means a property owner would pay $4,451 in taxes for every $100,000 of assessed property. The current rate is 42.98 mills.
The bulk of the increase is for city employees’ contractual salary increases, according to Elicker.
“I wanted to submit an honest budget, and I think we have done that,” Elicker said. “We will work to identify more cuts and efficiencies.”
The Board of Alders will be discussing the budget proposal in the coming weeks, and is slated to approve a spending plan by the end of May.
“It was a difficult budget year, and the most important thing for businesses is having a vibrant, strong and healthy city,” Elicker said. “It’s important that city services aren’t impacted and taxes are kept at a reasonable level, which is crucial for businesses to be successful.”
Looking to Yale
Early in his term, Elicker indicated he would be looking to Yale University and Yale New Haven Hospital to help fill the city’s approximately $45 million budget gap.
At Monday’s press conference, Elicker had staff put up two boards to compare Yale University and Yale New Haven Hospital’s annual revenues, in the $4 billion and $3 billion-plus ballpark, respectively, as opposed to their annual contributions to New Haven.
“I am calling on you to do your part,” Elicker said. “It’s time you step up and contribute to this city so everyone can thrive.”
Yale University and Yale New Haven Hospital have roughly $6 billion-plus in property that can’t be taxed. Instead, they contribute via voluntary payment in lieu of taxes (PILOT).
Yale University President Peter Salovey issued a statement following Elicker’s press conference. In it, he noted that the university paid $12 million to the city in the most recent fiscal year.
“While I applaud [the mayor’s] desire to address the city’s budget deficit head-on, I do not believe that New Haven’s books should be balanced largely by Yale University writing dramatically bigger checks,” Salovey wrote. “The truth is that our $12 million voluntary payment in the most recent fiscal year was the highest from a university to a host city anywhere in the United States, and represented a 44 percent increase from the payment we made just three years earlier.”
Vin Petrini, senior vice president of public affairs for Yale New Haven Health, said in a prepared statement following the budget plan’s unveiling, “We respect Mayor Elicker and understand that the budget pressures he is facing are real.”
“However, today Yale New Haven Health is the largest taxpayer in Connecticut, paying more than $300 million a year,” Petrini said.
According to Petrini, YNHH has provided $30 million in voluntary payments to New Haven over the last decade. He said it has additionally paid nearly $6 million in property taxes to the city each year. YNHH also contributes to community programs like New Haven Promise, he noted.
“While imposing additional voluntary payments is not the answer, we remain open to working on creative approaches with the city,” Petrini said in the statement.
Cuts and changes
Elicker’s budget plan makes various cost-cutting measures, such as defunding about 80 vacant positions, including multiple police and firefighter spots, and merging some departments.
According to Elicker, if he didn’t make any cuts or changes to the budget, taxpayers would have faced a 16-percent tax increase.
Elicker proposes to eliminate the city’s $300,000 contribution toward Market New Haven, which publicizes and markets what New Haven has to offer, such as restaurants, events, retail and entertainment.
The budget plan also would reduce city funding for the International Festival of Arts & Ideas from $100,000 to $30,000, Elicker said.
“I’m optimistic the festival will be able to raise money and plan well in advance to minimize the impact,” Elicker said. “There were many difficult decisions which had to be made.”
Tom Griggs and Liz Fisher, festival co-directors, said in a joint statement, “The International Festival of Arts & Ideas recognizes that Mayor Elicker was elected to make hard choices as he works toward building a stronger New Haven, and we respect his decisions.”
“We are all facing a challenging fundraising environment, and the festival is working hard to provide as much free programming (85% of our events are free) and as many opportunities as possible for all New Haven residents with the support we receive from the city,” they said via email.
According to Griggs and Fisher, the festival helps make New Haven a city people want to visit.
They indicated that in 2019 alone, they hosted 925 artists and speakers, drew 78,000 attendees and had an economic impact of $9.2 million.
“We cannot support our city without support from our city, and we look forward to sharing this season—our 25th—with our friends and neighbors who make this festival possible,” their statement said.
Elicker proposes moving the city’s Arts, Culture & Tourism arm back under the Economic Development Administration umbrella. According to Elicker, he doesn’t propose any change in funding there, just a reorganization.
Interim Economic Development Administrator Michael Piscitelli said Arts, Culture & Tourism would be known as the Department of Cultural Affairs. It will work to “deepen partnerships in the neighborhoods and collaborate with economic development,” he added.
Of the budget proposal as a whole, Piscitelli said, “We are seeing a real effort for long-haul structural reform.”
Elicker’s complete budget proposal is available on the city’s website.
Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.