Phoenix to Tighten Budget

The Phoenix City Council will meet today to determine how to cope with a revenue shortfall that has risen to almost $90 million from $67.2 million a month ago due to disappointing sales tax collections in January.

Sales tax revenue in January, which reflected consumer spending in December, was down 11.2% from last year. Construction tax revenue declined more than 27% from January 2007.

Spending cuts had included an 11.6% reduction in most department budgets and a 3% slice from police and fire budgets. Cuts will have to be even more severe to account for the additional $22 million shortfall.

City officials said they will recommend closing municipal swimming pools an additional two months each year, cutting funding to cultural and art groups by 34%, reducing hours at community centers and museums, increasing park and recreation fees, and eliminating park ranger positions.

Phoenix is also expected to dip into its budget stabilization fund to deal with the revenue shortfall.

The council is scheduled to consider the budget plan and adopt the fiscal 2009 budget at today’s meeting.

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