Proposed City Budget Continues Anchorage's Public Safety Investments

With the continued focus on improving public safety, easing traffic congestion, and maintaining a positive business climate, Anchorage Mayor Mark Begich today released the proposed 2008/2009 biennial budgets to the Anchorage Assembly and public.
"Overall, this budget is largely a "continuation" budget - continuing our investments in the services the public tells us are most important," Mayor Begich said. "That includes protecting public safety, relieving traffic congestion, and helping create a positive business climate so our economy can continue to grow."

Begich said 36 percent of the overall budget goes for public safety, and the most noteworthy investment is $1.25 million to hire 20 additional police officers for the coming year. The increase continues the administration's effort to fully staff the Anchorage Police Department with 93 new officers between 2003 and 2009. Over the past four years, the city has added 50 new officers toward that goal. The 2009 proposed budget calls for adding 13 more police officers, bringing the total to 83.

Other public safety investments in the proposed budget include picking up the full cost of funding four officers for the Cops in Schools program. Originally funded by federal grants, the city has already picked up the tab for 13 officers, and the 2008 budget funds the remaining four.

The budget also funds improvements to the 911 emergency system within the police department; and provides full-year funding for 14 new firefighters and EMT's at Fire Station 12 in South Anchorage, which voters approved in April. It also adds three additional dispatcher positions for the fire department's dispatch operation so the city can continue to improve on response times.

In an effort to make progress on the problem of public inebriates, the 2008 proposed budget also includes $190,000 for the under-funded Community Service Patrol, replacing federal grant funds.

"A continuation budget largely funds the same mix of services as in years past. But as we know, certain costs continue to rise," Begich said. "This budget absorbs $215,000 for increased utility costs and it funds about $500,000 for increased street maintenance and operations approved by voters through road bonds."

The proposed 2008 general government operating budget totals $429.2 million and is supported by revenues that total $442.8 million. The budget also includes tax relief totaling $13.54 million for next year, and continues to be under the tax cap. The 2008 proposed budget is an increase of $29.8 million, or 7 percent, over the revised 2007 budget of $399.3 million.

The single biggest increase in the Fiscal '08 budget is $11.2 million to cover the skyrocketing cost of public employee retirement liability. Begich said, fortunately, the city received half of that amount from the Legislature this year and fully expects the remaining amount in 2008. Had the city not absorbed the higher public employee retirement costs paid by the state this year, the overall '08 budget increase would have been significantly less.

Begich said the city will also lobby once again this next legislative session for property tax relief from the state. With a $37 million tax credit courtesy of the state this year, many property taxpayers paid less in 2007 than they did in 2006. The average property taxpayer saw a one-time savings in 2007 of $363. With the state benefiting from record high oil prices and additional revenues from a change in the oil tax, $13.5 million in property tax credits are proposed for 2008 and also for 2009.

In a morning news conference at City Hall, the mayor also briefly addressed the city's proposed capital budget which focuses largely on improving Anchorage roads to relieve congestion. Begich said the Assembly is being asked to approve a $64 million bond proposition in 2008, with 71 percent for roads and transportation improvements. Another $7 million of new investments is proposed for public safety, a little more than $6 million for public facilities, and $5 million for parks and recreation facilities.

There are a number of work sessions on the budget proposals scheduled with the Anchorage Assembly. The first is this Friday at noon. The two public hearings on the operating budget are scheduled for Oct. 23 and Nov. 6. Final action by the Assembly is expected on Nov. 13.