From AP - News Headlines -

Urbana City Council Reviews Budget Plan, Worries More Might Be Needed

As the Urbana City Council looked over the mayor's $48 million budget plan during Monday night's Committee of the While meeting, some members wondered if they should be making plans in case they need to make some mid-year spending cuts a few months from now.

Mayor Laurel Prussing's budget plan for 2010-2011 would freeze salaries and wages, and leave several positions unfilled. But some Urbana council members worry more cuts might be needed if tax revenues don't meet projections. When city Comptroller Ron Eldridge mentioned provisional plans for mid-year staff cuts if needed, Alderwoman Diane Marlin said she needed to know more.

"I'm concerned that these optimistic projections on revenue may not come to pass", said Marlin. "And I think it's my job as a council member to kind of think of more of a worse-case scenario, and at least about being prepared for it."

But Mayor Prussing was reluctant to release details --- in part because the staff cut scenarios name specific people. Later, the mayor said if they needed to cut more, they wouldn't just consider one plan.

"There isn't just one way of doing it", said Prussing. "We'd come up with many different things, and the council would have to decide what our top priorities are."

Prussing says her administration will monitor city tax revenues carefully, to see if mid-year spending cuts are needed --- and also watch for new revenue sources. One potential source is a local motor fuels tax. The mayor says Urbana council members will discuss that idea next month.

Categories: Government, Politics