New Haven announces nearly $17 million budget surplus

NEW HAVEN, Conn. (WFSB) - New Haven Mayor Justin Elicker says a $16.9 million budget surplus for the 2021-2022 fiscal year, means residents can expect taxes to not go up and services they depend on, from public works to public safety, to be there.

“Big picture is it’s good news for the health of our city,” said Mayor Elicker. “Us having an increasingly healthy financial situation means that residents in the long term can have more certainty that they’ll be able to rely on the city for that support.”

So how did the city end up with a surplus that will increase New Haven’s rainy day fund to $36.9 million?

The mayor and the city’s budget director say the state upping its payment in lieu of taxes from roughly $40 million to $91 million, along with Yale increasing its yearly voluntary contribution from $13 million to $23 million played a big part.

Another plus is the board of education coming in on budget.

The Elm City also brought in $7 million more in tax revenue than originally expected, most of it from people paying off back taxes.

The pandemic played a role as well.

When it comes to staffing, the city currently has around 200 vacancies, resulting in staff salaries coming in $3.5 million under budget.

Real estate transactions, along with building permits and construction were up as well.

“The goal is to continue to build on the fund balance and the surplus that we had this fiscal year, making sure we maintain an adequate budget and sustainable budget in future years as well,” said Michael Gormany, Budget Director.

But while New Haven is in a better spot than it was last year, Elicker cautions, the city’s pensions along with its healthcare and retirement liabilities are still underfunded.

“We’ve come a long way but we still face a lot of challenges,” said Mayor Elicker.

Separate from the budget surplus, the city says it also still has millions of dollars from the American Rescue Plan Act that it is putting towards a number of programs designed to benefit residents throughout the city.

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