Clear city budget deficit number changes perspectives

MOBILE, Ala. (WALA) - Some council members have questioned the projected 29 million dollar deficit from the start. 

Thursday, when Mobile’s finance director Barbara Malkove said the figure was likely closer to 11 to 14 million, council members were relieved.

Gina Gregory said the smaller number certainly sounds better than the original projection and its “a better number for us to work on.”

Gregory acknowledged, however, that the city isn’t in the clear yet.

"We still need to make some more cuts, and figure out better where exactly we're going to be going into 2013,” Gregory said. “But when you've got a difference of 15 million that certainly takes a lot of pressure off of us."

Gregory admits that 14 million is still a huge budget hole to fill.

"We still have make it up somehow, someway,” she said.

The councilwoman said the question, now, is exactly what that means for the city of Mobile.

“I think that's the direction that we'll be going from here on," she said.

Gregory said cutting insurance payments might be one option. That would mean city workers would pay a bigger portion of their insurance benefits.

Last year, when the city faced a similar budget crisis, the council approved a temporary increase to sales tax to deal with the shortfall.

That tax ended last September and, last month, the council rejected bringing the tax back.

Gregory believes citizens want to know the city is doing its part before they're asked to pay more.

"When they feel like the city is in the same boat or feeling the same kind of pain in making cuts and going forward and doing what's right, then they may not have as big a problem in paying more, if we have to," Gregory said.