Raleigh’s $20,000,000 Budget Shortfall

A Big Deficit

March, 17, 2009

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On Monday City Manager Russell Allen cooly delivered a preview of Raleigh’s 2009-2010 budget.  North Carolina’s law requires that Allen present a balanced budget in May and Monday’s meeting served as a preview for what will surely be significant contraction across the board for the city. This is the second year that the budget has contracted after a $5 Million drop in the 2008-2009 budget.  This time the cuts will be deeper ringing in to the tune of $18- $20 million of the approximately $640 + Million budget.  Last week Allen privately said that “this is the worst budget I have seen in my 30+ year career, but it is my duty to deliver a balanced budget.

The councilors’ mood was grim during Allen’s presentation, but the reality is that the they have long known the coming news.  Property tax growth is down along with permit fees.  Allen is proposing a %17 hike in water fees but some councilors are in opposition to this.  Half of the needed cuts were presented by Allen including restricting operating hours for services, freezing hiring, delaying maintenance projects, and freezing raises.  Allen did pledge to avoid layoffs and Meeker followed by offering to shift positions between departments.  NBC 17 quoted Meeker also saying “It’s long been Raleigh’s policy, when we have a recession or other hard economic time, that’s the time we do not raise taxes.”

Councilor Phillip Isley is pushing to put the new $226 Million Clarence E Lightner Public Safely Center on hold and acted like he knew nothing about the forthcoming $10 million dollar Hillsborough Street round-about projects. “Tomorrow we’re going to be voting on a $9- $10 million project for the Hillsborough Street roundabouts. I have no idea in the world why we would be doing that.”  The Hillsborough roundabouts have been planned for 10 years.

Allen will present the final budget for approval in May.

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Politics

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City Council Mayor Meeker Russell Allen Philip Isley Budget

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  • Matt
    03/17 11:55 AM

    But let’s go ahead and start installing the free downtown wifi, am i rite???1

  • T-Plain
    03/17 12:47 PM

    Is Isley kidding about the Hillsborough St project?!

  • Ken Metzger
    03/17 12:57 PM

    Isley has fought the Hillsborough St. project for as long as I can remember.  He just sees another opportunity to kill it, even though there was a bond vote with this project being a part of it.  I like investment downtown, but the WiFi does seem like a good item to cut or at least put on hold.

  • Les
    03/17 02:44 PM

    If a hike in water fees will help that much, I say do it. In addition to using a underpriced enterprise source to help make up the difference maybe we use a market-based approach to encourage people not to use water in reckless ways that helped sustain to the last drought.

  • arthurb3
    03/17 03:27 PM

    Every department should be accounted to cover their own cost through their own fees. Residents should pay “true” cost for water and other services.

  • RaleighRob
    03/17 03:33 PM

    As far as I knew, the Hillsborough Street project was to be covered by a bond that we vote for about 5 years ago.  So Isley should shut up about that one right there.  Compared to say, the Tryon Road widening, or any of the numeroud projects done in suburbia every year, it’s literally pennies in the bucket. 

    I do like the idea of charging higher water fees for the heavy users.  Ie, tiered pricing.  Would encourage conservation and reward those who use less.

  • Matt
    03/17 03:46 PM

    Also in support of tiered water pricing, or higher rates in general.  And Isley can cram it, those roundabouts are desperately needed (this coming from someone that lives nowhere near Hillsborough)

  • Ken Metzger
    03/17 04:02 PM

    It is not practical for every department to generate its own revenue.  Parks & Rec for have to charge $500 for a kid to play basketball and the police would have to start giving out $1,000 speeding tickets.  I would hate to see people’s reactions when they get the bill for calling the fire department.  I guess we would have a really awesome Water Works and a just a giant surplus for that department in charge of property taxes.

  • T-Plain
    03/17 07:17 PM

    The coin-operated trash cans are not going to result in downtown beautification.

  • ChiefJoJo
    03/18 12:59 AM

    I swear if Isley kills H-St, I’m going to bitch slap him.  Ditto Raleigh Rob’s comments.  Quit the suburban road widenings ad nauseum and focus on improving URBAN infrastructure.  Hillsborough should have been done 10 years ago.

  • RaleighRob
    03/18 04:33 PM

    ^Well, he voted against it but it passed.  Thank goodness.

  • bb
    03/19 09:02 AM

    I second Ken Metzgar’s sentiments.

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