Police disgruntled about pay
Board OKs $1.28 billion budget, 95¢ tax rate
By Greg Pearson STAFF WRITER

The board of supervisors reduced the property tax rate to 95 cents last week.

Though the Chesterfield Board of Supervisors tried to address pay issues for police, fire/EMS and teachers, the approved FY09 budget (starting July 1) is producing a mixed reaction. Chesterfield police officers are unhappy, Chesterfield County Public Schools (CCPS) is reviewing its plan to increase pay for teachers, and fire/EMS is "appreciative of the board's efforts."

While the board touted that county operations including salaries for police, fire/EMS and teachers would not be touched, Police Chief Thierry Dupuis isn't so enthusiastic. He isn't sure if the police department will be able to raise starting pay for officers this year. "I'm not sure what I'm going to do," said Dupuis. Low police salaries have caused many vacancies in the department as officers move on to other localities to earn better wages. Henrico and Goochland counties, for example, pay better.

With an MBA and seven years on Chesterfield's police force, Senior Police Officer Bill Stacy says he's looking for another job. "[The board] cut the property tax rate, and I have to wonder when they are going to address police pay issues," he said. "A lot of officers are in the process of leaving by applying elsewhere."

"Fortunately, firefighters are in a different position from police officers," observed Greg Beasley, president of the Chesterfield Professional Firefighters Association. "Our people aren't leaving. This [budget] is the beginning of addressing pay issues…inherited from the previous board."

"Our people understand it's so late in the game for this budget that this new board could only do so much," added Fire Chief Paul Mauger. "They are appreciative about the 4 percent merit pay for this year and have expectations for next year."

The board increased funding for the school system, but didn't allocate as much as administrators had initially asked for. Supervisors recommended the school system continue with its plans to give teachers a 5.6 percent pay increase. A response from school administrators early last week indicated they might cut that pay hike to 4.6 percent ($3.5 million less) to offset the $8.6 million in state and local funding they didn't receive.

The supervisors reduced the school system's annual funding increase by about $6 million, and state funding is estimated to be another $2.5 million less. The supervisors suggested the school system could save $456,726 by not hiring nine new teachers for the Chesterfield tech center. The teachers were needed to start a new afternoon shift at the center. An estimated 200 students will not be able to attend classes at the center if the afternoon shift isn't offered.

Other possible school cuts suggested by the supervisors include an employee savings plan match ($770,000), the Chesterfield Community Academy ($257,000) and AP/PSAT testing ($498,000). The latter would have parents pick up the cost of testing their children previously paid by CCPS.

The county board sets the budget for CCPS, but the school board determines how the money is to be spent.

In an e-mail last week, Superintendent Marcus Newsome responded, "The items that were identified during the board of supervisors meeting are a menu of options that potentially could be cut from the school board's approved budget. At this time, staff is working to prepare scenarios and implications for the [school] board for consideration at an upcoming meeting."

"During individual conversations with staff, the [school] board has reached consensus on several items, including a reduction in the required debt service and elimination of 37 new positions. That reduction in personnel includes 13 new security officers who would have been assigned to middle schools, 10 custodial workers to more efficiently serve schools, and nine teachers who would have staffed positions during a second shift of classes at the Chesterfield Technical Center," continued Newsome.

Even if the school system eliminates 37 new positions, there's still money in the budget to add 154 more employees.

"Additional options [for reductions] may include compensation increases for employees, major maintenance projects for existing facilities, and instructional and communication programs. The school board continues to consider teacher salaries a top funding priority. However, we must also have facilities and programs available to allow for effective teaching and learning," concluded Newsome.

Budget basics

Reducing the tax rate from 97 to 95 cents brings the county's total budget for FY09 to $1.28 billion, which is still a 9.8 percent increase over FY08. To be revenue neutral, supervisors would have had to adopt an 88- cent rate for property taxes.

The proposed budget was cut by $10.9 million because recent residential assessments show home values rose just 3 percent in 2007 with a 3 percent decrease for the first quarter of 2008. Based on recent data from Jonathan Davis, director of the real estate assessor's office, the county administration is expecting residential property values to be flat for this year. Commercial reevaluations are projected to increase 2.5 percent.

The county's general fund, where Chesterfield funds most of its services for citizens, is $750 million, representing a 2.3 percent increase over FY08, which is less than the rate of inflation. County employees will receive a 4 percent merit pay raise.

Much of the $3.5 million allocation shortfall in county government spending will be made up by reducing capital improvements by $1.2 million. The board reduced the expansion costs of the circuit and district courts by $500,000 but kept the project on schedule. Construction of the Reams Road Library was cut by $500,000 because it came in at a lower bid price. Another $200,000 is being saved at the public safety training facility because of a lower construction price. Chesterfield will also not set aside $1.2 million for the road reserve fund. An additional $490,000 is being saved because employee benefits for the mental health department were budgeted too high.

The county will save another $141,000 by not hiring two of the 26 employees it had intended to. Those cuts come from the building inspection and mental health departments and include benefits.

There is some concern among high county officials that the 95-cent property tax rate might be tenuous next year because of declining assessments. Of the general fund, 43.5 percent of the revenue is derived from property taxes, thus far the only revenue stream that's showing growth. While Henrico proposes to hold its property tax rate at 87 cents for FY09, some counties in central Virginia - like Powhatan - had to raise theirs this year.

Though the budget passed unanimously, Midlothian Supervisor Dan Gecker wanted to delay the vote for two weeks until the Apr. 23 meeting for more study.

After the vote on the tax rate, Chairman Art Warren was pleased that his view of the tax rate prevailed. Two weeks ago, he favored one or two pennies lower. Gecker and Matoaca Supervisor Marleen Durfee were undecided about the rate, and Dale Supervisor Jim Holland and Bermuda Supervisor Dorothy Jaeckle preferred no change.

Editor's note: For more information on the supervisors' budget priorities, read Warren and Gecker's commentary on page 23.