Dallas Facing $100 Million Budget Shortfall

Significant city service reductions and layoffs could be on the horizon as the city of Dallas remains at least $100 million short of balancing its books.
 
The city has already slashed $66 million from next year's budget. But without accounting for those cuts and other savings, Dallas' budget shortfall stands at $190 million.
 
City Manager Mary Suhm said officials have had to take painful steps to balance the budget and that things won't get any easier as she works to deliver a balanced budget for approval by the City Council in late September.
 
"What we're focusing on is contracting the organization so we stay within our means, but at the same time to be able to restore things as the economy comes back," Suhm told The Dallas Morning News.
 
Cuts in services and other savings seem to be the only options for the city as returns from both sales and property taxes have substantially dropped. Little new revenue is expected to come in.
 
Suhm has already decided to ask the council to postpone the next bond sale from November to May, saving the city $15.7 million in interest payments.
 
Cuts on the horizon could include elimination of some city programs and deep reductions in others.
 
And no department will be spared, according to a note Suhm's staff prepared for the council's Wednesday briefing.
 
"Many of these cuts are manageable in a short term. If they go on multiple years, they can do long term damage," Suhm said.
 
Suhm said also she does not plan to ask the City Council to raise the current property tax rate of 74.79 cents for every $100 of assessed value.