$200-Million Deficit Seen Over 20 Years

A long-range financial outlook presented to the City Council this week projected a $200-million budget deficit over the next 20 years.

In addition, preliminary estimates indicate that costs to maintain, repair and replace the city’s infrastructure will total $700 million.

“What we’re really saying is we have an estimated $900-million problem, and that isn’t something you solve by finding $500,000 here and $1 million there. You have to make major changes,” said Chuck Scheid, Finance Board chairman.

“It’s still a gigantic problem and can’t be resolved by routine, day-to-day management decisions,” he said.

The board’s report said that the primary solution must come from cost reductions, including cuts in the total cost for personnel, which accounts for 70% of the budget.

That brought a sharp response from some council members that the panel was proposing to balance the budget “on the backs of employees.”

“The problem can’t be resolved with one segment of our city taking the full brunt,” Councilwoman Shirley S. Dettloff said.

Scheid responded that the board’s intent is not to solve the problem by targeting employees. Rather, he said, total personnel costs must be addressed, as well as involving employees in the solution.