Post by Bob on Jun 2, 2010 10:23:59 GMT -5
City deficit
projection: $30M-
plus
Outlook for next year almost certain to
revive layoff debate
By Jane Prendergast • jprendergast@enquirer.
com • June 2, 2010
The city of Cincinnati faces a deficit next year
larger than $30 million - big enough to almost
certainly prompt another debate over layoffs.
Rumors of possible deficit amounts had been
circulating the past few weeks, but Tuesday was
the first time a city official actually stated an
amount publicly. Budget Director Lea Eriksen
wanted to wait until the release later this week
of City Manager Milton Dohoney's mid-year
financial update and tax budget. But members of
City Council's budget and finance committee
pressed her.
"It's big," she said at first.
Councilwoman Leslie Ghiz pressed for a range,
asking if the deficit would be higher than $30 m
illion. She started to back off that question, but
Councilman Chris Bortz urged her to continue
pushing for the answer.
Eriksen said yes, the deficit would be larger than
$30 million, and possibly "north of" $40 million.
That's less than the unprecedented $51 million
hole the city plugged for this year, but still big
enough that officials will have to talk about
cutting personnel and generating new revenue
with higher fees or property taxes.
Dohoney has warned that because many of the
measures council took to fill the $51 million hole
were one-time cuts, the same issues that were
side-stepped for this year will resurface.
Dohoney wanted to lay off employees this year,
which he said would make a longer-term dent in
the deficit. But union members objected. Council
members also declined to raise property taxes or
implement Dohoney's proposed trash collection
fee. At the same time, they avoided laying
anyone off by doing things like deferring
longevity payments to unions and borrowing
more from the city's savings accounts. Those
things don't do anything to reduce future
expenses, Dohoney said.
The city's general fund totals $353 million, with
its total budget - which includes capital projects
and departments like Greater Cincinnati Water
Works, which funds itself through water rates -
topping $1 billion.
Bortz suggested that council possibly cancel its
summer recess, which starts in July, to keep
talking about financial issues throughout the
summer. If staff cuts are necessary, council
should be planning soon for any reductions in
service, he said, and if a fee increase or tax hike
is needed, the city must have time to pitch it to
the public. Council ultimately votes on the next
year's final budget in December.
Also in question is which council member will
lead budget talks.
Councilwoman Laketa Cole, chairwoman of the
budget and finance committee, leaves council
Advertisement
projection: $30M-
plus
Outlook for next year almost certain to
revive layoff debate
By Jane Prendergast • jprendergast@enquirer.
com • June 2, 2010
The city of Cincinnati faces a deficit next year
larger than $30 million - big enough to almost
certainly prompt another debate over layoffs.
Rumors of possible deficit amounts had been
circulating the past few weeks, but Tuesday was
the first time a city official actually stated an
amount publicly. Budget Director Lea Eriksen
wanted to wait until the release later this week
of City Manager Milton Dohoney's mid-year
financial update and tax budget. But members of
City Council's budget and finance committee
pressed her.
"It's big," she said at first.
Councilwoman Leslie Ghiz pressed for a range,
asking if the deficit would be higher than $30 m
illion. She started to back off that question, but
Councilman Chris Bortz urged her to continue
pushing for the answer.
Eriksen said yes, the deficit would be larger than
$30 million, and possibly "north of" $40 million.
That's less than the unprecedented $51 million
hole the city plugged for this year, but still big
enough that officials will have to talk about
cutting personnel and generating new revenue
with higher fees or property taxes.
Dohoney has warned that because many of the
measures council took to fill the $51 million hole
were one-time cuts, the same issues that were
side-stepped for this year will resurface.
Dohoney wanted to lay off employees this year,
which he said would make a longer-term dent in
the deficit. But union members objected. Council
members also declined to raise property taxes or
implement Dohoney's proposed trash collection
fee. At the same time, they avoided laying
anyone off by doing things like deferring
longevity payments to unions and borrowing
more from the city's savings accounts. Those
things don't do anything to reduce future
expenses, Dohoney said.
The city's general fund totals $353 million, with
its total budget - which includes capital projects
and departments like Greater Cincinnati Water
Works, which funds itself through water rates -
topping $1 billion.
Bortz suggested that council possibly cancel its
summer recess, which starts in July, to keep
talking about financial issues throughout the
summer. If staff cuts are necessary, council
should be planning soon for any reductions in
service, he said, and if a fee increase or tax hike
is needed, the city must have time to pitch it to
the public. Council ultimately votes on the next
year's final budget in December.
Also in question is which council member will
lead budget talks.
Councilwoman Laketa Cole, chairwoman of the
budget and finance committee, leaves council
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