The city of Tucson’s budget deficit has fallen from $42 million three months ago to $25.6 million now, city officials said this week, as they consider fee and tax increases to further close the gap.
The reduction so far has come from early retirements, changes in medical benefits and paying down the city's public safety pension obligations, officials said. City Manager Michael Ortega has said fewer employees than expected took the early retirement offer, and that has added to the problem.
City Councilman Steve Kozachik, in his newsletter to constituents, said this week that fee and tax increases may be needed to eliminate the deficit before the new fiscal year starts in July. He said the City Council may consider asking voters to approve a sales tax or property tax increase, or both, on the November ballot.
Kozachik listed higher zoo entry fees, an increased hotel bed tax, tax on advertising, increased business license fee and other options to raise money. But everything on his list would not be enough and, as he said in his newsletter, "Getting to $25 million won't bew easy - and not getting there isn't an option."
Ortega was scheduled to update the public on the budget Wednesday at 6 p.m. at Kozachik's Ward 6 City Council office, 3202 E. 1st St.
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