SANTA MONICA : City’s Budget Shortfall Rises to Nearly $5 Million
Santa Monica’s estimated budget shortfall for the current fiscal year has risen to nearly $5 million, with a proposed bicycle path network leading a list of capital improvement projects canceled, scaled back or postponed as the city scrambles to balance the budget.
At a City Council meeting this week, City Manager John Jalili said that the revised midyear budget has been balanced without cutting the level of service to the public. But he predicted that 5% reductions would be needed across the board to cut $8 million from next year’s budget.
Finance Director Mike Dennis said that sales taxes, utility taxes, parking fines, hotel bed taxes and development fee revenues have all fallen as the recession caught up with Santa Monica this year. The city’s income this year probably will fall $4.9 million below what had been expected when the $191.7-million budget was passed in early 1991.
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