New Haven used innovative tax collection, debt management, and privatization to expand investments in services and cut costs. Many of these initiatives are summarized in the box on this page. New Haven's work force strategy reduced the rate of salary increases from 4.5 percent at beginning of the DeStefano administration's term to 1.6 percent through 1997. Beyond the Bottom Line Effective management is a key component of financial stability, but it can take a city only so far. For fiscal recovery to be sustained, the city's economy should grow.
Fiscal stability is one condition for economic growth.
Another is a mix of services, amenities, taxes, and regulations that provides enough value that residents and businesses decide to stay, to come, and to invest. The city expanded library and after-school reading programs. It more than doubled its homeless housing units, invested tens of millions in park and street improvements, and added nearly 1,000 officers to its police force. New Haven has cut property taxes since 1996, so that its rates are now comparable to those of many surrounding communities. The city is also redesigning its regulatory system to streamline administration, while cutting paperwork and fees for its businesses.