Friday, April 15, 2011

'Tools' Don't Help Janesville Avoid a Grim 2012 Budget Outlook

State budget cuts roll downhill. (Janesville Gazette, 4/14/2011)

Excerpt: Gov. Scott Walker said he gave cities the tools to deal with proposed cuts in state shared revenue, but Janesville City Manager Eric Levitt said those tools would help the city make up only about 34 percent of what Janesville would lose in state aid.

And some of the tools can't be used in Janesville.

"We're getting cut a lot more than getting savings," Levitt said.

Walker proposed eliminating most collective bargaining rights of public employees so local governments could save money to make up for cuts in state aid. The bill also requires public employees to pay half their pension contributions.

"The argument that the state is talking about, we get 100 percent savings for 100 percent in reduction," Levitt said.

But because of union contracts now in place, Janesville wouldn't be able to make up even 34 percent of state aid reductions, Levitt said

Some of the numbers.
  • Janesville's shared state aid payments have dropped 19% since 2003, from  $6.3 million to $5 million.
  • The city is looking at another cut in state shared aid of $1.1 million in 2012.
  • Recycling funds:  A loss of $328,000 in 2012 and the possibility of a $128,000 cut this year.
  • Transit.  A $72,000 cut.
  • City Manager Eric Levitt foresees a $2.9 million gap in the 2012 city budget.  (7% of $42 million.) 

The Governor's view.

No comments: