Burlington’s $14 million budget gap
Burlington is faced with an inherited budget deficit of over $13 million, defining the beginning of Mayor Mulvaney-Stanak’s administration with an effort to close it. The gap was initially thought to be closer to $9 million. Upon learning about the larger budget gap, Mayor Mulvaney-Stanak immediately set the expectation of transparency, and shared the news with Staff, Councilors and the public. Through working with department heads and the Chief Administrative Officer, a budgethas been crafted that is focused on affordability for working people, prioritizes fair taxation and long-term stability, and is right-sized.
In writing this budget, Progressives did the best that we could to make this budgetas affordable as possible with limited time and resources to do so. We are investigating ways to reduce the property tax burden and make it sensitive to the ability to pay. We are looking to improve community safety, and we are looking to collaborate with our regional, state, and federal partners — who we need to enable us to truly tackle these crises.
How are we closing the budget gap?
1. Increasing revenue from money spent at hotels, entertainment, and restaurants, i.e. “gross receipts”
The increase in tax revenue will amount to $4 per $200 (before taxes). The entertainment admissions and restaurant (meals and alcohol) increase amounts to $1 per $200 spent. This will be paid by people who stay at hotels and when they go out to eat.
Gross receipts taxes are more tied to the ability to pay than property taxes which are not income sensitive, drive up the cost of housing, and are avoided by a huge percentage of owners who own tax exempt property in Burlington, like UVM.
2. Property taxes
Voters authorized a property tax increase on Town Meeting Day this March. We did not use 33% of the approved increase - but are using gross receipts revenue in its place. This is in an effort to limit the property tax burden for working people as much as we can.
3. One-time funds
While we are using one-time ARPA COVID relief and other one-time funds to help close the gap in the budget, Mayor Mulvaney-Stanak was able to significantly reduce reliance on one-time funds from former Mayor Weinberger’s original draft budget.
In recent years, the City has relied on one-time funds to create and fund on-going obligations. This is not best practice, and the Mayor does not plan to continue on this trend.
Federal Opioid Relief funds will be used to deliberately move money to help those struggling with Substance Use Disorder in our city.
Through this budgeting process, additional funds were identified to invest in public safety.
We know community safety is a major priority for Burlington residents and businesses, and we are pleased to be able to dedicate resources and time to increase safety support in our city.
Additional resources to support the Library
Continuing the Fire Department’s Community Response Team
Hiring a temporary Senior Advisor on Community Safety in the Mayor’s Office
$50,000 to address emergent health and safety concerns related to unsheltered homelessness in Burlington.
Hiring additional Community Service Officers
One-time recruitment funds for the Burlington Police Department
We will also be adding a Housing administrator position to the department of Permitting & Inspections.
