by Max Marbut
Staff Writer
When he stepped to the podium at Monday’s meeting of the Rotary Club of Jacksonville, City Council member and former Council President Kevin Hyde remarked that he thought his audience might be wondering who they were going to hear — a lawyer or a politician. About half an hour later, Hyde had covered both areas, first relying on his expertise as an attorney who specializes in labor and employment law to explain the City’s budget process. Before he left the podium Hyde confirmed that he will be seeking the office of mayor of Jacksonville in the 2011 election.
Hyde pointed out Monday was only four days into the new fiscal year budget cycle and described what transpired to get a balanced budget enacted by Sept. 30 by saying, “To be charitable, the budget process was messy. We had to face some hard choices this year.”
He recounted the steps that led to the Council approving a budget based on the ad valorem tax “rollback rate” that provided the same amount of funds to the City in 2009-10 that were available in 2008-09 even though property values decreased by 7.5 percent in that period.
“We began the budget process with a $53 million hole. You would think with a $982 million budget you could easily cut out $53 million,” said Hyde, who then explained the entire budget wasn’t subject to trimming.
“A big chunk, about 27 percent, goes to debt service. A large portion of the wages the City pays are collectively bargained so that can’t be touched. We were faced with cutting $53 million out of the remaining $300 million in the budget.”
Hyde recalled the public’s reactions to the proposal to eliminate the City’s Veterans Day parade and reducing the police force by 100 officers as well as reducing services at public libraries.
“Those proposals were not well received. The public let us know what they feel is important,” said Hyde.
He predicted that next year’s budget “will be even scarier” and said he believes reforms in basic concepts will be required to maintain a sustainable financial situation. While about 11 percent of this year’s budget went to pension costs, Hyde said next year that expense will be 20-25 percent of the budget and if the pension format isn’t changed, Hyde said, within five to 10 years pension costs could account for as much as half of the City’s budget.
Two changes Hyde would support are changing the minimum service years for retirement from 20 years to 25 years and adjusting the current 8 percent return on employees’ pension fund contributions to a defined contribution system that would be “more market-driven.” Both changes would be effective for new hires, Hyde said and added, “Pension reform is what will fundamentally change the financial health of our community.”
He also said he supports the establishment of an advisory panel made up of citizens who would provide budget recommendations to City leaders because, “It’s extremely important for the community to look at where we want to be in five years.”
After his presentation, Hyde fielded questions from the club members and when he was asked if he were going to seek the office of mayor, he replied quickly and in the affirmative. After the meeting adjourned Hyde said he plans to open his campaign account shortly after he returns Thursday from the Jacksonville Regional Chamber of Commerce Leadership Trip to Kansas City.
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