Councilmember Carl DeMaio released a budget forecast showing that the city cannot balance its budget even if it closed all libraries, eliminated all park and recreation programs, and imposed a Trash Tax of $60 million annually.
At the City Council’s special meeting on the budget crisis today, DeMaio provided a powerpoint presentation depicting additional liabilities not included in the city’s official budget forecast, and projecting the impact of tax increases and various service cuts.
DeMaio’s forecast shows that the pension payment and retiree health care costs are the biggest contributors to the city’s budget deficit.
“There is no tax increase big enough and there are no neighborhood service cuts deep enough to solve the city’s financial problems. What’s worse, city residents should not have to see tax increases and deep service cuts if the city reformed its unsustainable spending practices. The numbers are clear: pension benefits and retiree healthcare costs are the cause of the deficit. City leaders must reform the unsustainable pension benefits and retiree healthcare benefits if we are to restore the city’s financial health without deep service cuts,” DeMaio commented.
An expanded powerpoint presentation is posted at CleanUpCityHall.com and will be used to brief the public at DeMaio’s upcoming “Town Halls on City Finances” that are designed to educate and engage the public on the city’s financial problems and seek their input on possible solutions. The first Town Hall is scheduled for Wednesday, October 14th at 6pm at the Scripps Ranch Library.