From AP - News Headlines -

City of Champaign May Need to Cut $2 Million More From Budget

Champaign department heads are developing a contingency plan, in case $2-million in cuts are needed.

Those reductions are in addition to the $9-million in reductions the city has already made the last few years. Several pages of suggested cuts will be discussed late next month by the city council. Assistant City Manager Dorothy David said cuts could include customer service jobs in the city building and police department's front desk, and reduced service hours in public works. She said it is getting to the point where snow removal could be impacted, and the city may need to make adjustments in routes and how quickly snow is removed. David said Champaign's resources to run city government are at 2006 levels.

"Even though we are seeing very slow revenue growth, our revenues are not growing as fast as our costs," said David. "When your costs grow faster than the amount of money that you're bringing in, you have to make adjustments. So the economy has really impacted us in that way."

David said if the state takes further action to reduce revenues that it shares with the city, like income tax, that would mean additional cuts. The city council will discuss these proposals in a study session November 23rd, and could develop a plan to implement them in January.

Categories: Economics, Government, Politics