City manager: 2010 deficit is $51 million - Cincinnati News, Weather, Sports from FOX19 NOW-WXIX

City manager: 2010 deficit is $51 million

Posted by Trina Edwards - email

CINCINNATI, OH (FOX19) - In a memo to Cincinnati Mayor Mark Mallory and members of city council, City Manager Milton Dohoney says the 2010 budget deficit has jumped $51.5 million.

The deficit for 2010 was originally estimated at $38.2 million.

The numbers are based on tax revenues for the city. The original Tentative Tax Budget was printed in May 2009 and submitted to the city in June. Therefore, the city manager says it did not include later revisions to both revenues and expenditures for 2009, as the city has tried to balance a $28 million budget shortfall.

"While the plan for 2009 closes the gap, it mostly relies on use of one-time sources that cannot be used again in 2010, leaving a $51.5 million remaining gap to address," Dohoney stated in the memo.

The 2010 General Fund total revenue estimate of $332.7 million is below the July revised 2009 General Fund revenue estimate of $337.5 million. Dohoney says in the memo that is largely due to a 2 percent drop in projected income tax receipts for 2010, from $219.8 million in 2009 to $215 million in 2010.

The city manager says his recommended 2010 budget will rely on a combination of expenditure reductions, including employee layoffs and the used of reserves and revenue increases.

The city manager has to submit his 2010 budget recommendations by November. Council has to approve it by the beginning of the year.

"Whether or not employees make further concessions remains to be seen," Dohoney said in the memo. "Any assistance they might provide would mitigate against the ultimate workforce reduction."


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