The Budget Challenge

By Andrew Carter

We closed a $7 million budget gap in 2003-05. We eliminated 20 FTE's to save $2.4 million annually. We cut Capital Improvement Projects to the bone, including our street and sidewalk repair program. We dipped into reserves for the first time in 15 years.

The situation is only getting worse. The State took $3.1 million from us in 2003-04. That number will exceed $4.5 million in 2004-05.

We're holding approved staff positions vacant and cutting all other expenses.

As things stand now, an unexpected expense of $100,000 swamps the budget. $100,000 was the cost of Mardi Gras enforcement last year. Mardi Gras enforcement may cost more than $500,000 this year.

It's going to be a difficult budget cycle in 2005-07. We may be looking at major service cuts. Either that or we're going to have to look for ways to increase revenues.

City Council, City staff, and the community will have to work together to reach a consensus on how to deal with the budget problem.