I Told You So…
Indianapolis Mayor Greg Ballard gave a first look today at the 2009 budget and the challenges the city is going to face and it’s not pretty.
The city will have to borrow about $150 million to make through the rest of the fiscal year. That amount is a result of delayed payments due to the property tax reassessment as well as $33 million in under-budgeting due to the previous people running the show.
Also, city revenues are not keeping up with expenditures and by 2012 the city will be in the financial hole by nearly $170 million.
The biggest expenditures are public safety and public works which make up 55-percent of the city budget and property taxes and local income taxes are the largest revenue stream, making up 53-percent of the city’s intake.
Ballard says to get the city’s finances under control it will require tight spending controls and local government reform, while at the same time the city keeping its commitments to public safety, road infrastructure and economic development.
The rubber is now hitting the road and Ballard is facing his first true test as Mayor. Unfortunately for him, there is no room for error.
