New Year, New Budget, Little Hope - WSFA.com Montgomery Alabama news.

New Year, New Budget, Little Hope

By Eileen Jones - bio | email

MONTGOMERY, AL (WSFA) - You may not have noticed but on Tuesday a new year came and an old year went without any fanfare. We're referring to the city's fiscal year. And now, two days into its 09 fiscal year the city's savings account is half gone - used to prop up a budget that's suffering from the same problems that are plaguing Wall Street and Washington.

Somewhere in the middle of downtown Montgomery is that so-called Main Street those on Wall Street have been talking about. The city's Finance Director Lloyd Faulkner is talking about it too. "People aren't buying. People aren't going out to restaurants and movies and stuff like that. So, this has an indirect affect on the city."

In fact, the city has hit its financial bottom and its reserve fund will be empty at the end of this fiscal year. Faulkner says "If it slides, if it continues to decrease on me then I've got to cut budget again and I don't want to have to do that because if they had cut it again it would have gotten into personnel. It was pretty tight."

So the answer is to build up the city's reserve fund. Faulkner can only guess what will happen next but he thinks there will be $2,000,000  left over from the '08 budget to put back in the reserve account. And, the city has $800,000 coming from gambling establishments before they closed years ago.

$3.2 million will be available if the city council overrides the mayor's veto of the garbage fee increase, and another $3-million if the council also overrides the mayor's objection to a tax increase on just about everything you rent except real estate. That would put about $9-million in the reserve fund which is a far cry from the almost $30 -million in the reserve account before this year. "Do you have any good news to offer at all? We're getting by. We haven't laid anybody off. We haven't cut any services and I think if things stay as stable as they are right now we won't have to do that" says Faulkner.

There's also the issue of increases in the business tax. That still has to be voted on by the city council. Faulkner predicts the business taxes for retailers will go down but the tax for professionals and entertainment concerns like movie theaters will go up.

The government's fiscal year starts at the beginning of October and goes to the end of September.

  • NewsMore>>

  • Lawyer: No apparent justification for fatal shooting of teen

    Lawyer: No apparent justification for fatal shooting of teen

    Thursday, June 21 2018 8:22 AM EDT2018-06-21 12:22:06 GMT
    Saturday, June 23 2018 2:00 AM EDT2018-06-23 06:00:08 GMT
    (Steve Mellon/Pittsburgh Post-Gazette via AP). Leonard Hammonds II, of Penn Hills, right, points out that a Turtle Creek Police officer has his had on his weapon during a rally in East Pittsburgh, Pa., on Wednesday, June 20, 2018, at a protest regardin...(Steve Mellon/Pittsburgh Post-Gazette via AP). Leonard Hammonds II, of Penn Hills, right, points out that a Turtle Creek Police officer has his had on his weapon during a rally in East Pittsburgh, Pa., on Wednesday, June 20, 2018, at a protest regardin...

    Hundreds of people took to the streets to protest the fatal police shooting of a 17-year-old boy killed just seconds after he fled a traffic stop during a confrontation partly captured on video.

    More >>

    Hundreds of people took to the streets to protest the fatal police shooting of a 17-year-old boy killed just seconds after he fled a traffic stop during a confrontation partly captured on video.

    More >>
  • High Court: Online shoppers can be forced to pay sales tax

    High Court: Online shoppers can be forced to pay sales tax

    Thursday, June 21 2018 10:32 AM EDT2018-06-21 14:32:03 GMT
    Saturday, June 23 2018 1:59 AM EDT2018-06-23 05:59:05 GMT
    (AP Photo/Jessica Gresko, File). FILE - This April 23, 2018, file photo shows the Supreme Court in Washington.  The Supreme Court says states can force online shoppers to pay sales tax. The 5-4 ruling Thursday is a win for states, who said they were lo...(AP Photo/Jessica Gresko, File). FILE - This April 23, 2018, file photo shows the Supreme Court in Washington. The Supreme Court says states can force online shoppers to pay sales tax. The 5-4 ruling Thursday is a win for states, who said they were lo...

    The Supreme Court says states can force online shoppers to pay sales tax.

    More >>

    The Supreme Court says states can force online shoppers to pay sales tax.

    More >>
  • GOP struggles to salvage immigration bill, postpones vote

    GOP struggles to salvage immigration bill, postpones vote

    Thursday, June 21 2018 12:41 AM EDT2018-06-21 04:41:36 GMT
    Saturday, June 23 2018 1:57 AM EDT2018-06-23 05:57:01 GMT
    (AP Photo/J. Scott Applewhite). Speaker of the House Paul Ryan, R-Wis., joined by House Majority Whip Steve Scalise, R-La., left, and House Ways and Means Committee Chairman Kevin Brady, R-Texas, talks following a closed-door conference with fellow Rep...(AP Photo/J. Scott Applewhite). Speaker of the House Paul Ryan, R-Wis., joined by House Majority Whip Steve Scalise, R-La., left, and House Ways and Means Committee Chairman Kevin Brady, R-Texas, talks following a closed-door conference with fellow Rep...

    An ambitious House GOP immigration overhaul is teetering ahead of voting.

    More >>

    An ambitious House GOP immigration overhaul is teetering ahead of voting.

    More >>
Powered by Frankly