Long Beach Budget Cuts 50 Jobs, Boosts Taxes

The Long Beach City Council has adopted a new $1.6-billion budget that eliminates more than 50 city jobs and boosts utility taxes.

Included in the budget are about $8 million in cuts and more than $16 million in new revenues created by the increased tax--which will go from 7% to 10%, increasing the average resident’s monthly electric, gas, telephone and water bills by $3.50--and various other fee hikes.

City officials attributed the smaller budget, about 12% less than last year’s, to decreases in federal and state funds, a recession that has reduced sales tax revenues, and shrinking oil revenues. The only alternative to increasing taxes, they said, would have been making even deeper cuts that would have affected the quality of life for residents.