City of Montgomery faces budget shortfall - WDAM-TV 7-News, Weather, Sports-Hattiesburg, MS

City of Montgomery faces budget shortfall

MONTGOMERY, AL (WSFA) -

Some Montgomery city leaders met to discuss numbers Tuesday. The city finance director reviewed the budget and shared the state of Montgomery's financial health with the mayor and city council members during a work session.

Montgomery finance director Barry Crabb stepped into his position just before the fiscal year began in October.

Budgets were already approved and now three months into the new year, there's a budget shortfall.

"100,000 dollars a month in our health insurance. The expenses are exceeding revenue for health insurance and benefits by $100,000," Crabb said.

Crabb says it's for all city employees and retirees.

"There's some question as to whether or not that trend will continue but we are just preparing for that possibility," Crabb said.

Crabb says that preparation entails looking for ways to cut costs.

"The mandated budget reductions of $2.3 million dollars the first day of the fiscal year is one way. We are looking forward changes we can make to the plans to reduce those deficits," Crabb said.

Crabb says included in that $2.3 million dollar mandatory budget is a two percent reduction for operational costs and one percent for public safety.

The city's budget for this fiscal year totals $229 million.

Copyright 2014 WSFA 12 News.  All rights reserved.

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