Phoenix Mayor, City Council work to make budget cuts to make up for $26M deficit

The city of Phoenix was looking at a $28 million budget surplus, but within 3 weeks, projections have done a 180, with the city looking at a $26 million deficit because of the coronavirus impact on local tax revenue.

PHOENIX - It was all good just a month ago.

The city of Phoenix was looking at a $28 million budget surplus, but within 3 weeks, projections have done a 180, with the city looking at a $26 million deficit because of the coronavirus impact on local tax revenue.

"We want to develop a deliberate process based on facts to identify a balanced budget which gives the council of the economy does better or worse than expected," said Ed Zuercher, Phoenix City Manager.

The first step to a balanced budget, cuts.

The city council debated how to find $26 million worth it reductions Monday, including

Hiring freeze saving $13 million.
Land sale transfers at $7 million.
Opting to not transfer $4 million to a rainy day fund.
Saving $2.2 million by holding off on vehicle replacements.
Holding on to a million that was set to go into a public safety pension stabilization fund.

"I also look at the cuts we’re making now and I’m deeply concerned we’ll have to make more cuts later," Mayor Kate Gallego said. "The current estimates on revenue reduction may end up having to be revised downward as we look at the data we do have available."

The council voted to add eight 911 operators and open the Office of Accountability and Transparency.

“I’m worried about starting a new program, I’d rather take care of current staff,” said Debra Stark, Phoenix Councilwoman.

Councilmember Carlos Garcia also weighed in.

“I don’t think we should delay this and use this as an excuse to politicize because this was unpopular with some people to begin with.”