Richmond budget
Richmond Mayor L. Douglas Wilder's proposed budget for next year calls for increases of:3 percent for total spending, to $658 million
0.6 percent for schools, to $161 million *
7 percent for police, to $79 million
4 percent for social services, to $71 million
* includes sales-tax funds paid to the city by the state
Top Wilder aides' pay up 13-20%
LIST: Top salaries
Warning of reductions in services if City Council cuts the tax rate, Richmond Mayor L. Douglas Wilder yesterday proposed what he termed a modest budget aimed at controlling spending in the face of a slowing economy.
"Money is tight," he said. "Those who want to act as if the city coffers are full and growth is robust or will rebound quickly are deluding both themselves and the residents of Richmond."
Wilder proposed increasing spending next year by 3 percent from this year's total, to $658.1 million.
For the biggest portion of the budget, the city's contribution to the schools, the budget calls for an increase of 0.6 percent. It would boost spending on the police by 7 percent and the sheriff and jail by 3 percent.
Wilder said it was vital to keep helping the city's poor, elderly and children, and his budget increased social-services spending by 4 percent. Most employees would get a 3 percent raise.
The mayor also proposed increases of:
Wilder said his budget left several vital needs unfunded, including a $2.7 million package of mental-health initiatives recommended by the Community Criminal Justice Board.
That money includes funds to pay for medications for jail inmates with mental illness. The Richmond Times-Dispatch reported this year that fewer than one in four inmates with mental illness get medicine.
The budget also proposed a new utility charge, to cover the cost of handling runoff from rainstorms. It would generate $14.4 million from residents and businesses next year.
"Why is this budget increasing in a year when [the mayor says] we're supposed to be tightening our belts?" City Councilwoman Kathy C. Graziano said.
She said it didn't seem as if Wilder plans to put into effect money-saving changes recommended by the city auditor.
"I certainly heard the mayor's dire warnings, but I think City Council and I will look at the budget submitted very critically and do all we can to provide tax reductions to the extent that we can," Council President William J. Pantele said. "We're mindful of the burden of taxes on our citizens."
Pantele, a possible candidate for mayor this year, has proposed a 3-cent cut in the real estate rate, to $1.20, a reduction he said the city can afford because of rising property assessments. Council will look for ways to adopt money-saving recommendations made by the city auditor, he said.
Harry E. Black, the Wilder administration's finance chief, said Pantele's proposed tax-rate reduction could force deep cuts by late spring.
Black said he "could not speculate" when asked if cuts could mean layoffs at City Hall.
"We would have to look at all of that," he said.
Wilder, who again hinted he might seek re-election, said cutting the tax rate may be popular in an election year but that it is fiscally irresponsible.
"I could have the possibility of standing here next year facing similar choices because popular political decisions are made in haste," he said. "The call to lower the tax rate is a disingenuous election-year shell game, and I won't play that game."
Contact David Ress at (804) 649-6051 or dress@timesdispatch.com.
Contact Kiran Krishnamurthy at (804) 649-6810 or kkrishnamurthy@timesdispatch.com.

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