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Government is a lot like cancer, it always keeps growing. And like cancer, over time government parasites almost always grow large enough to kill the organization that hosts them.
No layoffs, pay cuts expected to balance city's next budget Rhonda Bodfield Arizona Daily Star Posted: Wednesday, February 8, 2012 12:00 am The city won't have to lay employees off, cut their salaries or impose more furloughs to meet the fiscal year 2013 budget. But don't expect any new services to roll out either. While some tax revenues are beginning to nudge upward again, the City Council may face a budget gap of as much as $20 million, according to a preliminary budget discussion Tuesday. Sales taxes, which fund 42 percent of the city's general fund, are expected to bump up about 3 percent in the 2013 budget over the current year's. The $178 million the tax is expected to bring in, however, is still $24 million less than the city collected in 2007. The projected shortfall is based on anticipated higher costs for pensions and health insurance and because the city is being asked to pony up more money to help operate the mass-transit system. This year's budget projects a transit investment of almost $40 million, and the 2013 budget expects the contribution to hover around $45.5. million. Assistant City Manager Kelly Gottschalk told the council they'll likely be able to erase the shortfall, largely by relying on one-time monies, including an anticipated $4 million surplus in 2012 and a potential debt restructuring. But she warned the budget is not structurally balanced. The city's "rainy day" fund is only about half of what it should be. Employees have gone years without raises. The city has put off fixing up roads and making key equipment purchases, such as technology needs. And that doesn't even take into account what's headed the city's way in 2015, when some big public-safety grants run out and the streetcar should be running. "We very much need to get through this year and set the ship on its course," said Tucson Mayor Jonathan Rothschild. "But we are going to face some hard issues and we probably need to start looking at them this year." City Manager Richard Miranda is expected to send his recommended budget is expected to the council in April. Contact reporter Rhonda Bodfield at rbodfield@azstarnet.com or 573-4243. |