From AP - News Headlines -

Proposed Urbana Budget Avoids Layoffs, Uses Reserve Money

Urbana's proposed budget doesn't include any tax hikes, but eliminates raises and leaves a number of jobs vacant in order to do that.

The city will also rely on $6 million in reserves to balance the budget. Mayor Laurel Prussing says the $48 million dollar proposed spending plan also relies on fine and fee hikes from the past year. The city will leave seven jobs unfilled, including a police officer, a public works maintenance worker, and an executive assistant job that's being eliminated for good. Prussing says one area of revenue - the state motor fuel tax... really hasn't changed in 20 years, and suggests the city should enact its own. She says a 2-cent tax would bring a half-million dollars a year for street improvements. "This is something that has to be discussed with the council, and I'd like to talk about it with Champaign," said Prussing. "But I think it's something that Urbana really has to take seriously because we have a need for this and I think since we'd only be asking for a fairly modest amount, we'll have to see what the public thinks." Prussing says a 5-cent motor fuel tax has worked well in Danville, where residents don't mind spending the extra money to upgrade streets.

Mayor Prussing says she's also concerned about what courts decide on Provena Covenant Medical Center's tax exemption. She says if local hospitals provide enough charitable care to be exempt, then Urbana taxpayers are paying for it. She says that doesn't seem fair for the city to pick up that cost. Urbana's city council gets its first look at the budget plan on May 24th - a final vote on the plan will be on June 21st.

Categories: Economics, Government, Politics