Reno Budget Going Down

Reno citizens should get ready for some noticeable reductions in city services - they are coming soon. Budget projections made a few months ago have proven too optimistic in light of continuing declines in revenue, particularly sales tax, CTAX*, and property tax. City income is projected to come up $3.6 million short for the current fiscal year ending June 30, 2010, and at least $16 million down for 2010-2011. That's almost 10% of the current general fund budget.

At a meeting scheduled for January 8, 2010, the Reno City Council will work on what ways to close the immediate gap. The Council will be back on January 27 deal with next year's budget and will likely be asked to approve a resolution authorizing a reduction in force, or what is usually referred to with the L word that has been assiduously avoided thus far - layoffs. Lots of band-aid money has kept the city afloat this fiscal year, but it's pretty much tapped out. Depending on the salaries of those who may be let go, and whatever sustainable savings and/or revenue might be scrounged up, as many as 160 to 180 city workers will get pink slips. I'm keeping an eye on this and will let you know when I hear about further developments.

This situation is not unique to Reno. Washoe County has already shed hundreds of jobs through layoffs and by not filling vacancies. Next July, Sparks will be saying goodbye to 39 full-time employees through a buy-out program.

Meanwhile, there are things we can do to help ourselves. Foremost among these is to buy local and support merchants who have a vested interest in making our community a great place to live. By buying locally produced food, goods, and services from locally owned businesses, we can stimulate our own economy instead of sending the dollars off to some anonymous corporation, or worse yet, a foreign country to where those anonymous corporations have shipped formerly American jobs.

(*CTAX is a combination of taxes including those on alcohol, cigarettes, property transfers, government services and motor vehicle privileges.)

Source: City of Reno, Reno Gazette-Journal.

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