Deeper Cuts In Escondido
Written by admin on June 10, 2010
A bitterly divided Escondido City Council voted 3-2 Wednesday in favor of a $75 million budget for the fiscal year that begins July 1, with council members sparring over plans to use $4 million in rapidly dwindling city reserves to balance the new budget.
Councilwoman Olga Diaz, who has been a swing vote on budget issues since she was elected in late 2008, eventually joined Mayor Lori Holt Pfeiler and Councilman Dick Daniels in support of spending the reserves.
Council members Sam Abed and Marie Waldron said it was irresponsible to continue spending city reserves, which have plummeted from $41 million to $20 million since the recession began.
The new budget would reduce the reserves to $16 million, and city officials predict they will fall to $5.6 million in summer 2014 unless spending is cut or tax revenue bounces back. City revenue has fallen from $85 million to $67 million in three years.
Pfeiler and Daniels said the reserve spending is prudent because a balanced budget would be devastating to city services and residents.
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