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Phoenix budget shortfall is $59M next fiscal year

Phoenix estimates a general fund deficit of $59 million for the 2011-12 fiscal year, which begins July 1.

That’s a major turnaround from the $277 million budget shortfall the city faced last year.

City Manager David Cavazos released details Thursday of the trial budget he’ll present to the City Council next week.

The Arizona Republic says Cavazos proposes to manage the deficit mainly through debt restructuring and making internal cuts to city departments.

To balance the 2010-11 general fund, Phoenix implemented a 2 percent food tax, raised rates and fees and eliminated more than $63 million in services and programs.

The City Council will discuss the budget at a March 29 policy meeting. The city also plans to hold 15 budget hearings throughout Phoenix to collect input from residents.
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