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Press
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FOR
IMMEDIATE RELEASE
TASK FORCE RECOMMENDS BALANCED APPROACH TO BUDGET – CAREFUL CUTS AND TAX INCREASE With Berkeley facing a deficit that may reach $15 million due to state cuts, the Mayor’s Task Force on Revenue recommends city balance cuts with new tax measure. Click Here to Review the Revenue Task Force Report. Berkeley,
CA – With the city facing a growing deficit of as much as $15 million
next year, Mayor Tom Bates convened a Task Force to examine how to deal
with this looming budget crisis. Today,
the Task Force formally released its report, which calls for balancing the
budget with a $10 million parcel tax to be placed before voters in March. The tax measure – which
would include a 5-year sunset provision, an exemption for low-income
homeowners, and a citizen’s oversight committee – would allow the city
to protect front line services from budget cuts. The Task Force found that
Berkeley’s financial crunch is likely to get far worse than currently
projected if the newly elected governor’s campaign rhetoric becomes a
reality. Currently, the
budget deficit is projected at $9 million for next year.
State cuts currently being discussed would add at least $6 million
to Berkeley’s deficit next year alone.
All together, that $15 million deficit next year would cut out
13-percent of the city’s entire general fund if the budget were balanced
without additional revenue. “I greatly appreciate
the time, energy, and dedication of the volunteer Task Force members,”
said Mayor Tom Bates. “We face some very serious budget choices, and
this report provides me and this community with information we need to
make informed decisions.” Former Assemblywoman Dion
Aroner, who chaired the Task Force, will attend the City Council’s
special work session tonight at 5 p.m. to discuss their findings with the
Council. # # #
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