City Council Study Session - The Budget

Yesterday’s City Council Study Session took a look at the grim realities of the current budget situation, including almost certain layoffs.  Interim City Manager Ray Arellano presented staff work based on last week’s council feedback that favored a fairly conservative approach to potential budget shortfalls. 

Arellano identified $31 million as a conservative forecast for budget shortfalls, and presented $25 million in possible cuts identified by staff.  Any cuts, he said, will inevitably include layoffs, as past budgets have scoured other categories fairly thoroughly for non-personnel cuts.  The suggestions put forward Tuesday included about 130 layoffs of non-represented (non-union) employees.  Further proposals for dealing with the gap included a car tab fee, eliminations of certain non-profit tax deductions, an increase in the annual business license fee, and other adjustments.

This round of figures doesn’t incorporate potential revenue cuts from the state (liquor tax, etc), so it is possible that budget challenge could grow.  The Council and Arellano acknowledged this as a bridge to be crossed when the time comes.  Both also made clear a desire to make adjustments in steps, so as not to over-correct if last quarter’s numbers don’t turn out to be part of a greater trend.  The next update is scheduled for November 15th.

Good luck, everyone.