A city administration proposal to settle Richmond's budget dispute could force a 1 percent cut to schools and most city departments.

It also could make the City Council choose between a cost-of-living increase for city retirees and further reductions in its own departments, according to written meeting highlights and spreadsheets obtained by the Richmond Times-Dispatch.

City Councilwoman Ellen F. Robertson called the proposal a conversation starter at best and said nothing has been discussed with council members.

"This is really just very preliminary stuff that the mayor's staff has shared with our staff," Robertson said. "Right now, there's no negotiation going on."

Linwood Norman, a spokesman for Mayor L. Douglas Wilder, would not say whether the documents accurately reflect the administration's position.

"We have had productive negotiations to this point and if the council has no objections to indicating the current status, then we would have no objections to making it public," he said in a statement.

City officials are trying to work around a dispute over whether the city should be following Wilder's or the council's budget for this year.

To avoid a lawsuit, the mayor and council members agreed last month to have their staffs pursue an agreement to cut Wilder's $658 million budget by $6 million.

The reductions are needed in light of the council's decision to trim the real estate tax rate to $1.20. Wilder had proposed keeping the rate at $1.23.

Administration officials outlined a proposal last week that was summarized in notes and spreadsheets by the council staff. The proposal would save $4.8 million by cutting departmental budgets, excluding police, fire and social services, by 1.03 percent, according to the documents.

Administration officials want to include schools in the cuts. If schools were spared, the cuts to city departments would have to be increased to 1.58 percent to produce the same savings.

The proposal also includes various cuts approved by the council that total $1.2 million.

City Councilwoman Kathy C. Graziano said the council will insist that any budget compromise include the cost-of-living increase for retirees and money for stormwater-management infrastructure.

The administration's proposal would provide $2.3 million in surplus funds from last year's budget for stormwater management. It does not specifically address money for retirees, but it would make $1.8 million left from 2006-07 for council additions. That would be enough to cover only part of a 1.5 percent adjustment for retirees, which would cost $2.7 million.

If more than $1.8 million is needed for council additions, the administration is recommending further cuts to council departments.

Yesterday, two candidates for mayor supported funding the cost-of-living adjustment for retirees.

In a joint news conference, Paul Goldman and Del. Dwight Clinton Jones complained that the budget talks are private and said any resolution should include the support for retirees.

"We're here to say, 'Don't sell out the senior citizens in private. You made a promise. Let's keep it,'" Goldman said.

Council President William J. Pantele, who also is running for mayor, said council members are negotiating with Wilder in part to help retirees as soon as possible. He said litigation on the budget likely would bring delay.

Pantele deflected criticism that the talks are too secretive and said neither Goldman nor Jones participated in the council's extensive budget meetings.

"Anything that is arrived at would require a public hearing and public vote," he said. "The process leading up to this [is necessary because] we want to give this approach a chance of success."
Contact Will Jones at (804) 649-6911 or wjones@timesdispatch.com.

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