Downey : Budget Shortfall Prompts Special Council Meeting

A projected $2.5-million budget shortfall has prompted the City Council to call a special meeting today at 6:30 p.m. to gather public input on proposed cost-cutting measures.

The recession and an expected reduction in state funding have forced city officials to reconsider plans to spend $34.4 million in next year’s budget. Officials have projected that the city will receive only $31.9 million in revenue.

Council members will examine 75 budget-balancing proposals ranging from drastic cuts, such as laying off 49 city employees to save $2.34 million, to increasing utility user taxes on electricity, gas and telephone by 1% each to raise $1.9 million.

The council budget committee--composed of two council members, the city manager and assistant city manager--has recommended that the council approve 30 of the proposals, amounting to a savings of $920,000.