Fixing the Record Budget Deficit

In fiscal year 2007-2008 officials overspent by $2 million and burned off $2 million of our savings (fund balance) to cover the deficit. In the fiscal year 2008-2009 officials plan to overspend by $10 million, which is a record deficit; the largest in city history. $10 million in savings will be burned off covering this year’s planned deficit. Given the current economic trends it is highly unlikely to secure anywhere near $10 million in new on-going revenues to cover our on-going expenses.

This on-going $10 million budget deficit will burn off our entire savings by 2011. Fort Ord development won’t be the miracle cure because revenues from the planned new Fort Ord hotel, offices and strip mall won’t happen until well after 2011. This dangerous trend is a financial train wreck that can’t be avoided without major cuts to city staff and services, coupled with new taxes on Marina businesses and residents. Officials’ reckless budget strategy is a tax measure in disguise, which they want to keep a secret until after all the votes are cast in this November’s election.