Burlington budget deficit grows to $13 million

Burlington Mayor Emma Mulvaney-Stanak on Thursday said the city’s $9 million budget deficit has now swelled to nearly $13 million due to a miscalculation of employee benefit costs and other increasing expenses.

The new deficit forecast comes after a more accurate analysis of employee benefit costs was completed for the next fiscal year. Salary growth and employee health benefit expenses, initially estimated at $3.4 million in December, are now pegged at $7 million.

Costs in overtime, training and equipment needs in the police and fire departments were already expected to increase by $2.1 million, while actual revenue projections for the current fiscal year are $4 million less than projected due to the end of federal pandemic aid, according to Joe Magee, a spokesperson for Mulvaney-Stanak.

The new shortfall was revealed during a press conference Thursday featuring city department heads, including Burlington’s chief administrative officer, Katherine Schad.

“One of my commitments to the residents of the city during my campaign and now as mayor is transparency,” Mulvaney-Stanak said. “I am also committed to transparency with city employees, city unions and my city council colleagues.”

To close the gap, officials plan to conduct an operations assessment study to “identify efficiencies and cost savings,” the city said in a press release. That study is expected to be completed next month.

Another study, due in late April, seeks to assess whether user fees are in line with market rates and accurately account for service costs. Fees may increase next fiscal year to raise revenue, Magee said.

A public safety tax approved on Town Meeting Day will be used as necessary, Magee said, and a tax dedicated to retirement funding will be triggered to cover Fiscal Year 2025 increases.

Mulvaney-Stanak has asked city department heads to review budgets and provide cost-saving recommendations in the coming weeks. City budgets are typically approved in June and take effect in July.

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