Salt Lake City budget: 'It's beyond bad'
Record deficit » Officials project nearly $20 million gap for fiscal 2011 due to nosedive in sales tax.
By Derek P. Jensen
The Salt Lake Tribune
Updated: 03/02/2010 11:16:08 PM MST
Salt Lake City's budget is barren, bleeding and bleak. And now, it includes a record deficit.
Two months before Mayor Ralph Becker will present his "balanced" fiscal-year 2011 budget, the city's financial team is projecting nearly a $20 million gap, meaning severe service cuts, employee sacrifices --and perhaps a tax hike -- are in the offing.
The culprit, like last year, is a combination of plummeting sales tax and peaking tabs in health care and retirement costs. The city's key money maker -- tax revenue based on eating and drinking -- is reeling as discretionary income dries up and the recession rages.
Nobody on the sullen City Council has seen anything like it.
"It's beyond bad," says Councilwoman Jill Remington Love. "The biggest gap I've seen in my eight years was $4 million, and that was last year. Before that, it was $1 million and we had layoffs. Everyone's going to have to make a sacrifice."
Becker's chief of staff David Everitt says everything from capital projects to salaries to fund balances will be considered as the Mayor's Office strains to plug the hole. That includes a property tax increase. "It's definitely not off the table," Everitt says.
Budget director Gina Chamness outlined what led to the challenge,
noting City Hall wrongly assumed the recession would hit bottom last summer. "Our assumptions have not proven to be correct," she told the council Tuesday. "They've proven to be optimistic."
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