May 15, 2020 Sender?s Email: ashley.mates_at_(domainremoved) Sent Via Email Menlo Park City Council 701 Laurel St. Menlo Park, CA 94025 650-330-6610 Re: Staff Recommendation on a Balanced Budget Dear City Council Members, City staff noted in the April 28th financial report that there is a great deal of uncertainty about the fiscal impact of the COVID crisis. The most recent staff report recommends a budget strategy that is intended to ensure the Cities long term fiscal sustainability. However, the staff report fails to take into account the human cost of its recommendations and the current strong financial condition of the City. We can all recognize that the COVID crisis has caused every employer and union to reconsider policies, producers, and budgets. There is no doubt that it will continue to be at the forefront of everyone?s mind for the foreseeable future. At a time where people need access to health care the most, Staff recommends layoffs that would potentially separate people from their health insurance, further deepening the pandemic. As the AFSCME staff rep, I have applauded Menlo Park?s efforts to keep its workers safe by ensuring people can work from home. Laying people off now would reduce people?s access to much-needed health insurance should they get infected with COVID-19. Laying people off now will also further exacerbate the unemployment crisis which will have long term impacts on our community?s health. The City is in a financial position to ensure every employee at Menlo Park has a job through this crisis but the City fails to prioritize its workforce and provide the leadership necessary to prevent layoffs. Elected leaders across the state are pledging that they will do everything possible to avoid layoffs. I hope Menlo Park will do the same. A budget analysis provided by AFSCME International?s Labor Economist Matt Mayers, cites the positive budget variance, credit rating, and unrestricted fund balance as reasons why Menlo Park is more than prepared to handle the financial crisis before it has to resort to laying off workers. The City has a history of extremely high budget variances that yield more positive results than expected, resulting in a highly flexible budget. It is also unjustifiable to suggest layoffs when then unrestricted fund balance is 74% of expenditures. In other words, the City could operate with its current budget for 74% of the year before needing any additional monies. This is four times the Government Finance Officers Association?s conservative recommended standard of 17 percent of expenditures. The City also has the highest Moody credit rating available because of its large tax base, robust growth, and strong financial position. In addition to the City?s strong financial position, there might be relief on the way. The House voted on the Federal Relief HEROS Act. If passed, Menlo Park is slated to receive an estimated 11 million dollars this year and 5.6 million dollars next year to help avert layoffs and provide additional fiscal relief. AFSCME members across the country are working to find ways to support the bill. We hope that the leaders in Menlo Park do the same. Before Menlo Park considers layoffs, we hope they will consider reevaluating non-personnel cuts and find alternatives to layoffs should personnel cuts become more necessary. We would be happy to help find those alternatives and work collaboratively with staff to create a budget that shows leadership in the region through this crisis. Sincerely, Ashley Mates Staff Rep AFSCME District Council 57 Oakland, CA ashley.mates_at_(domainremoved) https://www.afscme57.org/ cell: 510-220-7992 Click here https://afscmecouncil57.na1.echosign.com/public/esignWidget?wid=CBFCIBAA3AAABLblqZhDzABa_0kEmJkJLLPdIVdagkpWajfa9cKMq9v3ANDy544cvClCH9d34eJKsFjQw8Fw *> to become a member! Support Schools and Community First https://www.schoolsandcommunitiesfirst.org/ > __________________________________________________________________________ The information contained in this email may be privileged, confidential and exempt from disclosure under applicable law. The information is intended only for the use of the individual or entity to which it is addressed. If you are not the intended recipient or the employee or agent responsible to deliver it to the intended recipient, you are hereby notified that any use, dissemination, distribution or copying of this communication is strictly prohibited. If you have received this message in error, or are not the named recipient(s), please notify the sender immediately by reply email and delete this message from your computer. Thank you application/pdf attachment: Staff Recommendation on a Balanced Budget.pdf
