Oklahoma City manager Jim Couch last week said city department budgets would be cut 2% as sales tax revenue slid in December 2009 for the 10th month in a row.
Six months into fiscal 2010, Couch told City Council members, revenues are $17 million below expectations.
The city will have to draw on up to $15 million of its cash reserves to balance the current budget before it ends June 30, even with the cuts, acording to Couch.
“I’m sorry I’m the bearer of gloom and doom,” he said.
He said city department heads have been told to cut their proposed spending for fiscal 2011 by 12%.
The current police and fire department budgets were not affected by the 2% budget cuts, but Couch said they would not be exempted from next year’s reductions.
City budget director Craig Freeman said sales tax collections have fallen since March, with the largest single drop coming last month as revenue fell by 15%.
The 2% budget reduction will result in the elimination of 37 city positions, although only one employee will be let go.
