From AP - News Headlines -

Austere City Budget Gets its First Showing before City Council

Champaign's City Council is reviewing the next fiscal year's budget and preparing for changes in service levels.

The proposed cuts include eliminating six vacant positions, and reducing public works crews and neighborhood services. City Manager Steve Carter says residents have likely not noticed the cuts so far, but that may not be the case next year. "I think we've done a good job in our reductions so far that I don't think people so far have noticed much of a difference," Carter said. "But I think with this next round of reductions, they'll be starting to see some of that. You know, in each area there's just a little bit of a fall off in terms of the level of service we're providing."

The budget, presented by Carter and Champaign city finance director Richard Schnuer at a study session after Tuesday's city council meeting, includes two-point-five million dollars in spending cuts. These cuts are less than half of the six million dollars cut from last year's budget.

The budget cuts are necessary in part because the city is not expecting any increase in sales or income taxes. Sales tax alone is the largest source of revenue for the city, making up 31% of total revenue, followed by property tax at 24%.

The council will work with the City Manager's office to review the budget in detail this month. A vote to adopt the budget will be in June.