PORTSMOUTH
Prospects for state aid to the city are looking even grimmer going forward.
Richmond-based financial analyst and public policy consultant James J. Regimbal Jr. told the City Council at a work session Tuesday night that he expects more cuts in state funding to localities when the state budget projections are released in August.
Budget trims beyond the $4 billion already taken in the fiscal year that starts July 1 are likely because of slow revenue growth, Regimbal said.
More state cuts could hit Portsmouth particularly hard, Regimbal said. Out of the cities in South Hampton Roads, Portsmouth relies on state aid for the largest percentage of its revenue - more than 40 percent.
"The problem is that when the state has to cut its budget, you're vulnerable," Regimbal told the council.
The areas where the city might see more cuts include education and aid to police and at-risk youth, Regimbal said.
Portsmouth officials already saw cuts to education and other programs this budget year.
The city received some federal stimulus money to offset some of the lost revenue for the schools.
Jen McCaffery, (757) 446-2627, jen.mccaffery@pilotonline.com
Delicious
Digg
Reddit
Facebook
Google
Yahoo
Federal Stimulus money to offset School Budget?
I thought Federal Stimulus money was to create jobs and stimulate the economy. How does that apply to offsetting poor managment with the school budget ? I guess Cities can still spend millions and millions on new schools and the federal goverment will create new money to pay for it. What on earth is going on ?
Maybe we should start reducing the size of City Council in order to save some money. Looks like some more people will get laid off this fall.
Good thing we are doing things like keeping a public pool open even though we don't know where the city will get the money to run it. And building a new library, but can't afford to staff it.
All Reason is lost.....
uh-oh
looks like trouble
will this mean higher taxes next year too?