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Tampa Facing Budget Deficit

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By CHRISTIAN M. WADE

cwade@tampatrib.com

Published: December 10, 2008

TAMPA - With payroll costs steadily rising and property and sales tax revenue declining, the city is facing a projected deficit of more than $35 million in next year's budget.

The dire predictions, unveiled at a meeting Tuesday between Mayor Pam Iorio and city council members, mean that the administration will likely need to tap into reserve funds again to bridge the anticipated shortfall.

"We're going to be facing some major fiscal challenges in the coming years," Iorio said.

She attributed much of the projected shortfall to increases in payroll and pension costs.

"We need to bring the pay raises down to a more reasonable amount," Iorio said. "We are in a deep recession and frankly our rate of pay raises don't mesh with the times."

The city is in the midst of contract negotiations with the Amalgamated Transit Union, representing about 2,000 blue-collar, technical and clerical workers, and the union that represents firefighters, both of which are asking for pay and cost-of-living increases.

Next year, the city begins negotiations with the police union on a new contract.

In this year's budget, which began Oct. 1, the city faced a shortfall of more than $17 million in operating revenue, the bulk of which was paid with reserve funds.

Council members said they would support the use of reserves in next year's budget.

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