Alison Hewitt reports that there is a predicted $2 million budget deficit in West Covina. I wonder whether the Big League Dreams project had anything to do with this deficit?
Deficit expected for W.C. budget
$2 million shortfall to bring mandated cuts
By Alison Hewitt, Staff Writer
Article Launched: 02/09/2008 12:10:51 AM PST
WEST COVINA – A predicted $2 million budget deficit will require tough decisions, council members said this week.
The city had a balanced budget for the past two years after overcoming five consecutive deficit years, but West Covina is headed back to the red, Finance Director Thomas Bachman said. Dropping sales tax revenues and slumping property taxes are the main culprits, he said.
Although property taxes are simply expected to grow slower than in previous years, sales taxes from sources such as shopping malls and new-car sales are down 12.5 percent compared with this time last year, Bachman said.
“That’s far worse than expected,” he said.
His November report to the City Council predicted deficits in 2008-09 and warned of pressures on the current year’s budget, but did not definitively forecast deficits this year.
“This does concern me. There is not a quick fix,” Councilman Steve Herfert said at Tuesday’s council meeting. “I think that when we work on the budget this year, we’re going to face some tough decisions.”
Bachman expects sales taxes to fall $1 million short of budget predictions, and anticipates $1 million for unbudgeted projects will be needed this year, creating the $2 million shortfall. Read more.