Phoenix Moves To Wipe Out Future Budget Deficit
The city of Phoenix is facing a massive deficit in the next budget cycle. The city is already moving to curb spending without cutting public services through 2016.
Phoenix Budget Researcher Mario Paniagua said the city is dealing with a projected deficit ranging from $15 to $54 million over the next year, depending on sales tax revenues. He said all city departments are now going over their budgets line by line.
“We’re working to keep costs down," Paniagua said. "Although we cannot always control what happens in the economy, we can look at our costs really closely and have a lot more control there and that’s how we are trying to address this deficit."
The city of Phoenix was able to wipe out a $38 million deficit in this year’s budget. Paniagua said employee pensions are the biggest financial challenge, but last year voters approved changes in the city’s retirement system that will save about $830 million over the next few decades.