Tax Shortfall Has City $15 Million Short
Mayor's Office, City Council To Meet On Shortfall
POSTED: Monday, May 18, 2009
UPDATED: 6:33 pm EDT May 18,
2009
JACKSONVILLE, Fla. -- Dwindling tax revenues have made a challenging budget year for the city even more difficult.
A forecast Channel 4's Jim Piggott obtained from the state shows sales tax revenue will be at least $15 million lower than was forecast for the next six months that was forecast.
Sales tax revenue is down. State shared revenue is down," said Misty Skipper of the mayor's office. "But some of our expenses are also down."
The half-cent sales tax we pay for the Better Jacksonville Plan projects is down by $10.7 million, which means delayed road projects will be delayed even more. Other sales tax revenue is off about $4 million. With people driving less, gas tax revenue is down about $1 million.
City Council members who control the city's purse strings said they knew it was going to bad, but they are more worried about next year.
"Hopefully we can get though this fiscal year without having to make any reduction in services," said Councilman Warren Jones. "Next year is going to be the real challenge."
Halfway through the city's budget year, leaders said they have made some savings: particularly with fuel charges because gasoline is cheaper than it was last year. The said there are emergency funds are available to help in the short run, but if the economy keeps sliding down, they will have to make some changes.
"We continue to monitor that, and if changes are necessary, we will certainly adjust as accordingly," Skipper said.
Later this week the mayor's staff will meet with City Council to go over the remaining budget year. By July, the mayor must propose a budget for the fiscal year beginning Oct. 1.
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