In light of the current economic crisis, Madison’s already tight city budget is projected to make $500,000 less in income than previously proposed.
Mayor Dave Cieslewicz had already decreased the projected revenue of investments from $6 million to $5.25 million. After the additional decrease, the new projected amount is $4.75 million dollars.
“Given the events in recent days, it seems that the fiscally prudent thing to do would be project $500,000 less,” said Cieslewicz spokesperson Rachel Strauch-Nelson
The city’s budget, which will be released next Tuesday, had to be reworked due to the loss in revenue.
City Treasurer Dave Gawenda said the city puts away money each year to accumulate interest as one source of city funding. He said his office makes a recommendation each year on how much revenue the city should budget to earn off its investments.
Since stock prices have been fluctuating greatly over the past week, Gawenda said the uncertainties in the market caused them to cut down their projection.
“I think the main issue is the uncertainty,” Gawenda said. “If [Congress is] successful in doing what they failed to do [Monday], things could calm down in a few weeks.”
Strauch-Nelson said with how difficult the 2009 budget already is, it is better to account for less now than to be short on funding later. She said Cieslewicz recognized the “need for some fiscal restraint and fiscal responsibilities.”
Officials could not say what departments or services would be facing budget cuts.
Cieslewicz asked each city department to submit a budget proposal for 2009, with a 5 percent decrease from their 2008 budget.
“My department’s contribution will be half a million less than what it would have been,” Gawenda said.
City Comptroller Dean Brasser made a number of recommendations after the mayor called for the 5 percent cut.
The most significant cuts made in a number of departments’ proposed budgets were eliminating positions.
In addition to the drop in the market, high fuel costs have put a strain on the city’s budget.
In a statement released in early September, Cieslewicz said he would not cut police, firefighters or crossing guards, because safety remains a top priority.
