Malkove: Deficit closer to $14 million

MOBILE, Ala. (WALA) - Mobile's Citizen Budget and Advisory Committee held its second meeting Thursday and questions about the city's actual projected budget shortfall were answered.

It's a number that has been hard to nail down: just how much of a projected budget shortfall is Mobile facing?

Several city council members have questioned this number, saying it is time to come clean about the real deficit.

in March 2012, council member William Carroll asked for clarification from Mobile’s Executive Director of Finance Barbara Malkove.

"The current projected budget with what we have is now only $20 million?" asked Carroll.

Malkove answered, "No, it is $29 million."

Now, Malkove said it's much less.

Malkove told members of the Citizen's Budget and Finance Advisory Committee when pressed it's more like $12 to $14 million.

But, she said it's the city council who has thrown the $29 million figure around.

"It's the city council and others that have picked up on $29 million because it was the worse one. It was not cutting any expenses and not improving revenues."

FOX10 asked Malkove if the $12 to $14 million improves the situation, and if the city can now do without increasing taxes.

"Well, there will have to be some increase in revenue but won't be as dire," said Malkove.

This is not what Mobile Mayor Sam Jones has said in the past when pushing for a sales tax increase.

"It could be 28.5, it could be 31 but 29 is a number we feel comfortable with," said Mayor Jones earlier this year.

Learning the actual projected budget is important to members of this committee who have been tasked to identify and analyze alternatives to saving money.

FOX10 asked those on the committee if this is the first time they’ve heard the $12-$14 million shortfall instead of the projected $29 million.

"That is correct," answered Committee Chairman Paul Wesch. "It is a moving target."

Wesch and fellow committee members made a list of priorities to help solve the budget fiasco.

The list included

• pension matters
• healthcare,
• whether the city is too top heavy when it comes to employees.

The question of who can and can't be laid off was also answered.

Personnel Board Director Donald Dees said layoffs do not have to be across the board, but members can target specific job classifications or titles.

"The layoff rules are specific by job classification," said Dees.  

Seniority and employee performance ratings dictate who can be let go.

Dees said employee performance ratings are recorded at the personnel board into a computer and anyone can ask to see the rating.

He also said that is the extent of what the personnel department does with the employee rating.