Santa Monica : Vote Probable on Budget

In a public hearing Tuesday on next year’s city budget, the City Council announced that spending for fiscal year 1991-92 will exceed state limits and that an election will probably be called to seek voter approval of higher spending limits.

City staff members said that because the state cut funding for local governments, the city would have to spend more next year and will probably exceed limits imposed by the state’s Gann Initiative. Under that initiative, cities must put to voters any spending above state limits.

According to city staff, this would be the third such election to raise the city’s spending ceiling. A staff report states that because the state cut funding for property tax collection, jail bookings and other subsidies, the city will have to spend an extra $900,000 during the next fiscal year.

The council and other financial analysts also expressed concern that the current recession could reduce income to the city--such as property taxes and business license fees--and prompt cuts in some programs. “That might be a decision we may have to look at,” said Councilman Ken Genser during the hearing.

The 2 1/2-hour public hearing was held at the request of community groups, which wanted an early forum to air budget requests. The new fiscal year starts in June.