LAUREL, MS (WDAM) - According to Laurel Mayor Johnny Magee, the city's of Laurel's 2016 budget is down more than $700,000 behind last year's budget.
"We have had some down sales tax months. Since last year, sales tax has been decreasing of the years prior," Magee said.
This is why Laurel City officials are making cuts across the board to the 2016 budget.
Mayor Johnny Magee said while no jobs will be lost, every department will take a hit including the police and fire departments.
"We won't be talking about laying anybody off, we won't' be talking about people being furloughed," Magee said
Magee said the declining oil industry is to blame for the drop in sales tax revenue.
"Oil service business had to close, and a lot of people are out of jobs," he said.
Magee said he is optimistic about the city's future.
"The month of April, we actually had our first positive sales tax since last year," Magee said.