Q&A
Council Member Brewer questions IBO on uncollected funds and budget risks
1:51:26
·
4 min
Council Member Gale A. Brewer engages in a Q&A session with representatives from the Independent Budget Office (IBO) regarding uncollected funds, budget risks, and education funding. The IBO provides insights on potential revenue sources, fiscal management challenges, and concerns about education budget cuts.
- IBO confirmed approximately $2.1 billion in uncollected fines and fees dating back to 2017
- Major budget risks identified include the need for cautious fiscal management and inaccurate within-year budgeting practices
- Potential reductions to school budgets due to enrollment declines and the expiration of federal COVID aid were highlighted as areas of concern
Gale A. Brewer
1:51:26
Thank you very much for a very clear, practical analysis.
1:51:30
Maybe you could be head of OMB.
1:51:32
That would be very nice.
1:51:34
My question is something that I keep asking, which is what, I think in the past you've given us 2,100,000,000 in terms of uncollected funds.
1:51:43
And I'm just wondering if that's something that, you think about in terms of the future.
1:51:48
Are there some of those funds in the future that could be collected?
1:51:51
It's a big number.
Louisa Chafee
1:51:54
Councilman, thank you for your question.
1:51:56
We anticipated this, and Sarah's gonna give you the details.
Gale A. Brewer
1:51:59
Thank you.
Sarah Parker
1:52:01
So at your request, last year, IBO released a publication where we looked at uncollected fees and fines, particularly in the areas of parking in camera, vehicle motor vehicle violations, lienable property charges, and penalties that go through the administrative the office of administrative trials and hearings oath, and that's the city's, civil courts.
1:52:26
As you mentioned, we found about $2,100,000,000 in fines and fees that had been charged, but not yet collected, and that's dating back to 2017.
1:52:38
IBO has not updated that number yet, but certainly, this is an area where the city is due money that it is not collecting.
1:52:48
There is always a question on how much more enforcement will yield actual collections.
1:52:53
So that's an open ended question.
1:52:55
And in terms of our forecast, right now, because enforcement and rules around this have not shifted, what the city historically is has as uncollected receivables, we we don't reprice that.
Gale A. Brewer
1:53:09
Okay.
1:53:09
Thank you.
1:53:10
The other question is just I know you mentioned this, but what do you think are some of the biggest risks to the current and next year's budget?
1:53:17
And you mentioned them some in your in your testimony.
1:53:20
I just didn't know if you could elaborate, on that question.
1:53:25
Risks, generally.
Louisa Chafee
1:53:30
Oops.
1:53:30
Sorry.
1:53:33
So the city is currently in sound financial shape.
1:53:37
The largest risks that we see are, 1, the need for ongoing cautious management to address the gaps in the out year, but again if one looks at those in historical context, they are gaps that can be surmounted with cautious fiscal management.
1:53:55
We also do highlight the city's practices of not accurately budgeting within the year.
1:54:02
And that we recognize that programs change, that's why there are multiple budget actions during a year.
1:54:07
The challenge is the scale of dollars of change, so that we are concerned that this inherently could present a risk.
1:54:14
And we're not alone in that concern.
1:54:16
I know you will hear very similar concerns, both from the controller, and, other entities that are fiscal watchdogs.
1:54:28
But, in general, I think our assessment is that the city is in sound shape and requires cautious management to proceed.
1:54:38
Ready to add one thing?
Sarita Subramanian
1:54:39
I did wanna, I just wanna just add one area.
1:54:42
We mentioned, briefly, and Louisa Louisa mentioned in the testimony was the Department of Education.
1:54:49
We mentioned several programs.
1:54:51
One thing that we didn't mention that we are, watching out for are the, potential reductions to school budgets, because, the the, previous funding, was fill partially filled by with the federal COVID aid, and that is has not yet been put in place for next year.
1:55:13
And given the enrollment declines, that's something that we are, watching out for when the preliminary school budgets come out.
Gale A. Brewer
1:55:20
Are you also watching out for the Carter cases?
1:55:22
Is that something that you're focused on?
Sarita Subramanian
1:55:24
Yes.
1:55:24
For sure.
1:55:25
So we do estimate, additional need for Carter cases for next year of 424,000,000.
Gale A. Brewer
1:55:32
Okay.
1:55:33
Do you see any way to, lower that number?
1:55:36
Obviously, my suggestion would be build schools that address the needs of parents and students.
1:55:42
Is there am I missing something?
Sarita Subramanian
1:55:45
Yeah.
1:55:45
That I I another area that is also been historically federally funded is the expansion of special ed pre k, and I think that is another area that, could potentially stem, the number of Carter cases that the city faces.
1:56:01
Okay.
Gale A. Brewer
1:56:01
Thank you very much.
