Forget the $18.5 million projected general fund deficit that city officials have been trying to cut for the coming year. In the current fiscal year, which ends this month, Long Beach's revenue is expected to fall $12 million short.
The good news is that programs and services aren't being affected, Director of Finance Lori Ann Farrell said. Drops in property tax, sales and use tax, hotel bed tax, parking citations and several other revenue sources are to blame, Farrell explained in a report to the council last month.
However, the rising cost of oil and other new revenues, such as the medical marijuana permit fees, will offset all but $2 million of the shortfall. The city had budgeted for a $40-per-barrel oil price, but the price has averaged $70 per barrel over the last year.
The last $2 million will be saved through reducing expenditures and "maximizing other funding sources," Farrell says in her report. There isn't anymore explanation beyond that, so hopefully Long Beach can really cut $2 million. I'm guessing it won't be as simple as cutting back on office supplies.
If you want to know what's to come, click here for the community budget book for the next fiscal year.
The good news is that programs and services aren't being affected, Director of Finance Lori Ann Farrell said. Drops in property tax, sales and use tax, hotel bed tax, parking citations and several other revenue sources are to blame, Farrell explained in a report to the council last month.
However, the rising cost of oil and other new revenues, such as the medical marijuana permit fees, will offset all but $2 million of the shortfall. The city had budgeted for a $40-per-barrel oil price, but the price has averaged $70 per barrel over the last year.
The last $2 million will be saved through reducing expenditures and "maximizing other funding sources," Farrell says in her report. There isn't anymore explanation beyond that, so hopefully Long Beach can really cut $2 million. I'm guessing it won't be as simple as cutting back on office supplies.
If you want to know what's to come, click here for the community budget book for the next fiscal year.
Paul Eakins reports on Long Beach City Hall, and local and regional
politics. A newcomer to the Press-
Kris Hanson reports on the Ports of Long Beach and Los Angeles,
covering environmental issues, economic triumphs and
pitfalls and trade trends of America’s largest port.
He also writes a weekly column “On The Waterfront”,
appearing Tuesdays, and also produces an occassional video
and column titled “On The Job,” which follows the hard-working
men and women who keep Southern California’s economy humming.
Karen Robes Meeks came to work for the Press-
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