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FOR
IMMEDIATE RELEASE
Berkeley
Council Adopts Balanced Budget -- Over $8 Million Cut, 52 Positions
Eliminated
Council also
restores some funding to public safety, youth, arts and other programs. Berkeley, CA – On Tuesday night,
the City Council turned the corner on its budget crisis when it approved a
balanced budget for the next two fiscal years. For the 2006 fiscal year, which
begins on Friday, the Council cut over $8 million from its general fund
and eliminated 52 employee positions. An additional $1.8 million in cuts
and 11 employee position eliminations were tentatively approved for the
2007 fiscal year, which will begin in July of 2006. This budget comes on top of
several years of significant budget cuts.
In total, the City has cut over $20 million and reduced its
workforce by 10%. However, there is light at the end of the tunnel.
Forecasts show the City should not face another major shortfall and
is on pace to eliminate its structural deficit. The Council also approved the
Mayor’s proposals to save several critical programs – including public
safety, youth, arts, and homeless services. “Without question, this has been
the most difficult budget year yet. There
is not a department in the city that has not received cuts,” said Mayor
Bates. “The good news is
that the Council worked carefully and cooperatively to address our budget
crisis while protecting essential services such as public safety and our
social service safety net.” Late last week, the city’s
public employee unions also agreed to a proposal to save $3 million in
personnel costs over the next three years by changing the rules on the use
of vacation time. Last year,
employees took a reduction in their cost of living increases to help save
the City over $1.2 million. The final vote on the budget was
8-1. The 2006 fiscal year
general fund budget is $128 million.
The 2007 fiscal year general fund is projected to be $127 million. # # # |
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