Charleston Facing $6 Million Budget Shortfall
By Marc Knapp
Charleston Mayor Joe Riley noted during the Oct. 12 City Council meeting that deliberations will begin shortly for the 2011 budget and said that at present there is a projected gap of $6 million between revenue and costs.
Despite the difference, the city will not implement a tax increase to balance the budget and is looking at other ways to find cost savings, Riley said, adding that he expected the economic environment to improve by 2012.
A presentation of the city’s budget plan is expected in mid-November.
Last year City Council approved a $146.6 million budget for 2010 that cut spending by more than $1.3 million from the previous year. Charleston reduced employee pay, eliminated raises and increased the city’s franchise fee, which is a tax on power bills.
Charleston has continued to trim costs throughout the year as revenues have fallen short of projections.