Budget woes continue for Bloomington

For the second time in three weeks, Bloomington Mayor Mark Kruzan addressed the $500,000 shortfall from the 2004 income taxes. \nThe problem comes in light of the city misprojecting the amount it was going to receive in the City Option Income Tax. The city initially projected to receive about $6.8 million in revenue, but because the city only makes estimates based on the previous year, there was no concrete number. \nThen, earlier this year, the city learned it would only be receiving $6.2 million, which was a projected loss of $529,245. \nThis announcement came after the city said earlier this year it was losing $476,619 in property taxes and levy reductions. \nNow, the city has a total shortfall of $1 million.\nSusan Clark, interim controller, said the controller's office is doing everything it can to not affect workers in Bloomington.\n"We are going through the budget with a fine-tooth comb," Clark said. "At this stage, we are looking at department heads to see what they can save. We certainly hope to make cuts without affecting citizens."\nClark also said her main concern right now is trying to find solutions to the problem.\n"Right now, this is my priority," she said. "We're not going to save money foolishly. We need to look at everything harder with different opinions."\nKruzan said he is concerned with the budget in light of the recent events.\nIn a statement, Kruzan said, "We now face the hard reality that substantial revenues anticipated when the 2004 budget was prepared will not be available."\nKruzan also agreed with Clark in saying every possible option will be considered to try and not affect the public.\n"Our common goal is to reduce expenditures with as little adverse impact on city services as possible," Kruzan said. "There is no more competent and qualified team than the city staff to keep the community moving forward, even in a tough time."\nNow with the shortfall, several options are up for consideration to try and remedy the problem.\nClark has suggested three options for the 2004 budget -- cut expenditures, dip into reserves or try a combination of both. \nBut in the past, Kruzan has said dipping into reserves would not be a wise alternative for the city, mainly because reserves cannot replenish themselves.\nDeputy Controller Sharon Williams said by cutting expenditures, the city is trying to tighten its budget to alleviate its problems.\n"We are trying to be very frugal. We have cut out a lot of things from the budget as of now, and I am very proud of what we have done so far," she said.\nWilliams also said the budget would balance soon if residents pay their property taxes and stay in Bloomington. But a decrease in tax income or a population decrease could extend the city's trouble, and it could take up to five years to even the budget.\n"I want to hope that we recover soon, but it could possibly take up until 2009. We are optimistic of that year being sooner," Williams said. "But things unfortunately can come up that could set us back, so to say how many years is tough."\nSetbacks, Williams said, including careless spending by the city.\n"We need to not spend so quickly if we have the money," she said. "Just because we say that you can spend doesn't mean you should. We need to get back to a cash balance."\n-- Contact staff writer Lindsay Jancek at lmjancek@indiana.edu.