The last time Halifax Regional Police went asking for a significant budget bump, it was a mess.
On Tuesday, Halifax regional council looked at making some changes to the budget process by putting more responsibility for shaping the police budget in their hands instead of the Board of Police Commissioners. These changes were a request from council last April.
With the release of the Defunding the Police: Defining the Way Forward for HRM report presented to the police commission in January, and the outcry from many residents about the initial ask from HRP for a $2 million budget increase, there was serious pushback on that budget. It took more time than usual and the board held a special meeting where they hosted an unprecedented public engagement session on the police budget.
Chief Dan Kinsella, who is facing a confidence vote from the Halifax Regional Police Association this month, said last winter they were stretched thin but returned with a scaled-down budget request. In March, Halifax regional council narrowly approved the revised $89.2 million (with an increase of $413,050).
In a statement earlier this month, Kinsella said these have been difficult times for people in policing and that as chief, “I am very focused on putting in place the right supports for our officers and improving morale while also responding to changing societal expectations.”
At Tuesday's council meeting, staff brought their budget schedule and plans, which came with some changes in how the police budget is nailed down.
Like usual, the police board will first review a budget proposal from HRP before sending it to council. But council will get involved earlier in the process as it will be up to councillors to decide on specific staffing changes. Those staffing changes will form the foundation of a revised budget, which will cycle through the board and then back to council again.
“The intent here is this approach will reduce the potential for confusion during that process or the HRP budget being returned to the board of police commissioners for adjustments,” Michael Pappas, manager of corporate planning, told council on Tuesday.
HRP is expected to bring their staffing plan and budget to the board, the first step in this process, in December and council is expected to get their hands on it in February.
A $76-million funding gap (so far)
HRM’s overall budget is expected to be completed on April 25, 2023, and as of now, city staff expect it to be a big task to balance.
“While HRM’s economic outlook remains strong, driven by continued historic population growth rates, major public investment projects across provincial and municipal sectors and the continuing growth of key sectors (professional, scientific sectors); the macro environment is volatile with sentiment becoming increasingly negative,” wrote Pappas in his report to council.
“This volatility may influence significant service and financial challenges facing the municipality in the coming fiscal year.”
“We have hit the top of deed transfer tax."
- HRM CFO Jerry Blackwood
Early indications show HRM is facing pressures with a funding gap of over $76 million.
Staff point out the largest financial pressures are increases in energy costs, “high and increasing compensation increases from collective agreements,” softening revenues from deed transfer taxes and other factors.
“We have hit the top of deed transfer tax,” said CFO Jerry Blackwood, who added that in the past five years or so, about 75 per cent of the municipality’s surplus was driven by the deed transfer tax.
He said they expect revenues from deed transfer taxes to decline by about $7 million.
Blackwood said HRM is on track to have a $5 million deficit.
Members of the public will be able to provide their input on what HRM should and should not spend its money on during at budget meetings and/or through written submissions.
Councillors identified several conflicts on the schedule presented on Tuesday, so Blackwood suggested that he would adjust and bring it back to council for their approval.
