PRESS RELEASE FOR MORE INFORMATION CONTACT:
FOR IMMEDIATE RELEASE JASON SILVA, CHIEF OF STAFF
JUNE 24, 2010 (978) 744-9595 ext. 5603
Mayor submits FY2011 operating budget
Health care savings help balance budget and keep services intact
SALEM – This week, Mayor Kimberley Driscoll submitted a $127,718,869 proposed Fiscal Year 2011 budget to the City Council. Despite cuts to local aid and a tough economic climate, the FY11 proposed budget is balanced, preserves jobs and, in some cases enhances services the City provides to residents.
After close to a dozen meetings with union officials, the Teachers and AFSCME Bargaining Units have agreed to make changes to their health insurance plan design which will increase co-pays from $5 and ultimately save the City over $1 million if all employees agree to the changes. The remaining unions are expected to take this matter up in the coming weeks.
“Thanks to some of the City’s unions agreeing to changes in their health plans, the City will be able to continue to provide the services residents of Salem expect and deserve,” said Mayor Kimberley Driscoll. “This new health plan also brings the City of Salem’s insurance benefits more in line with the State Group Insurance Commission (GIC) plans which are more affordable for both the City and employees.”
Along with the savings in health care, the recently adopted local option meals and hotel taxes and additional operational efficiencies have allowed the City to have a balanced budget that supports important priorities like keeping low class sizes, investing in public safety and keeping up with capital needs.
Other highlights from the proposed FY11 budget include:
- A $1.6 million increase in funding to Salem’s schools that, in combination with American Recovery and Reinvestment Act funds and health care savings, will keep class sizes modest and continue innovative programs and strategic planning efforts.
- An equivalent of five additional Police Officers on patrol, thanks to a major change to civilian dispatchers.
- Deferring hiring a new Police Captain in favor of hiring an additional Patrol Officer.
- A $600,000 reserve account to allow the City to plan for the future while also providing an opportunity this year to potentially offset property tax increases to residents.
- An increase in the City’s commitment to support the marketing and promotion of Salem as a tourist destination. This was made possible with the passage of the local option hotel/motel and meals taxes.
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