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Standley White

City Revenue Continues to Decline

By , About.com GuideJanuary 28, 2011

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Remember Groundhog Day, where the Bill Murray character kept waking up to the same scenario day after day? Reno's version of the same thing is coming around again. At about this time last year, the city faced a multi-million dollar shortfall in its current budget - this year, it's back to the tune of $6 - $8 million. The fix is likely to be more cuts in city services and layoffs of an additional 20 to 30 employees. The Reno City Council has directed City Manager Donna Dreska to prepare a list of recommended cuts by February 9.

Reno City Hall
Reno City Hall.
Photo © Stan White

This time, Reno residents are likely to really notice. According to a quote from Dreska reported in the Reno Gazette-Journal, "We are at the point we are going to be impacting constituents. We are already down 24 percent." City workers now number 1,240, a decline of 381 over the last two years.

A reversal in the city's revenue fortunes is not on the horizon. Next fiscal year, starting on July 1, the forecast calls for an additional $20 - $25 million in cuts to balance the budget. As long as Reno remains dependent on tourism, gaming, sales tax and property tax (all of which keep declining steeply), I don't see any relief in sight. This new reality of fewer city services and employees is going to be with us for a long time. The question is how the City Council will spread the cuts across city departments. How would you deal with this shrinking pie? In this poll, you can select more than one response.

Sources: City of Reno, Reno Gazette-Journal.

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