BILLINGS - Your tax dollars have been helping some city employees cover the cost of commuting, even if it’s just a drive to the office. But that decades-old perk may soon be a thing of the past.
As Billings city leaders work through next year’s budget, a proposal to eliminate monthly car allowances for top-tier staff is on the table.
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Council members and some city staff took up the issue Wednesday at a budget committee meeting in City Hall, resulting in some divided on the idea, which could save nearly $69,000 a year, according to a memo from City Administrator Chris Kukulski.
“If you’re really flush, that’s great… but we’re not,” said City Council member Bill Kennedy.
Kennedy launched the idea aimed at trimming the city budget in the face of rising property taxes and city rates.
The monthly car allowance in place since the 1980s currently benefits 15 city employees, according to the memo.
Here’s the breakdown:
- $500 – City Administrator (per contract)
- $400 – All other department heads and city judges (12 in total)
- $300 – Building division official
- $150 – Mayor
“We’re a city that doesn’t need all the bells and whistles,” Kennedy said.
Kennedy says he’s not aware that other cities offer car allowances and that it’s time to prioritize core needs like public safety.
“We have a lot of seniors; we have a lot of working families that are trying to own homes. We need to help them. But you know what the number one issue is? I am looking for dollars to put more officers on the street,” he said.
He instead proposes reimbursing employees based on the federal mileage rate of 70 cents per mile instead of giving them flat-rate car stipends.
But the suggestion has drawn pushback from others on the Council.
“I guess I am wondering about how department heads feel about their compensation being lowered,” said Council member Ed Gulick.
“The savings aren’t there. This is just essentially an overreach to micromanagement that I don’t think is appropriate for Council,” said Council member Tom Rupsis.
And for some staff, they say tracking mileage for every trip around the city could become a tedious task
“It’s way too onerous to track a mile here and a mile there all over the city,” said Debi Meling, director of public works.
Despite the opposition, Kennedy remains firm on finding budget solutions.
“I think people are asking us to please be frugal with the dollars to run our city,” he said.
In response, city leadership has asked the council to give administrative staff authority over the allowance policy. If eliminated, they want the program phased out as positions turn over.
Kukulski also announced that non-union employees hired after June 2024 would no longer be eligible for longevity pay, a change expected to save the city $1.1 million.
The proposal will now head to a public hearing before the City Council.
