Charlotte Dealing with Budget Crisis

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Β CHARLOTTE, NC —Β The City of Charlotte is facing a serious budget shortfall of $32 million, and city leaders say everything is on the table when it comes to making cuts.

City Council will have some tough choices to make before the budget is finalized in June.

“I’ve got basically 45 days to come up with recommendations for council,” said Charlotte City Manager Ron Carlee.
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The City Council Budget Committee met Thursday to start drafting a plan to deal with a serious budget shortfall.
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“What’s important to the community?” asked Councilman Greg Phipps. “What things do they feel strongly about? Still recognizing that we’re going to have difficult decisions as we move ahead.”
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“We’re working in a very uncertain environment, but assuming that we’re going to have to tighten our belts,” said Councilman Ed Driggs.
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The budget crisis comes on two fronts. $18 million gone, after the state General Assembly repealed the Business Privilege License tax, a key source of city funding in a growing Charlotte economy.
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“The likelihood we’re going to get some relief in the Privilege License tax is small, so we’re not counting on recovering any of that,” said Driggs.
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The city also lost $14 million this week, when a countywide property revaluation came up far short of what was expected.
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“I’m really confused as to when did people know these things, and what was the delay, if it was a delay, in letting us know way before now,” said Phipps. “Because it’s quite stunning that we’re at this point right now.”
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The city can knock the shortfall back to $15.6 million with new tax sources, a freeze on hiring and raises and across-the-board cuts for all departments.
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Things like public safety and health are priorities, but budget committee members say everything is on the table.
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Projects that are in planning–like a sports complex at Bojangles Coliseum, North Tryon redevelopment and CMPD division expansions–could be postponed.
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“We don’t want to do tricks, and using one time money and band aids,” said Carlee. “Then you’re just kicking the can down the road, and you have to deal with it next year.”
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“I’m very nervous about the revenue option portion of it,” said Driggs. “I don’t think there’s any possibility to introduce a tax increase at this point.”
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City Manager Ron Carlee will present his budget recommendation May 4. The city will hold a public hearing on the budget May 11.

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