Archive for Wednesday, January 14, 2009

City may lose about $1M in funds

Budget cuts are hitting local governments hard. The governor's proposed budget would create at least a $1 million shortfall in the city's already-approved 2009 budget.

January 14, 2009

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Gov. Kathleen Sebelius’ proposed cuts to the state’s budget would create at least a $1 million shortfall in the city’s already approved 2009 budget, city leaders estimated Tuesday evening.

City Manager David Corliss said he’s most concerned about the governor’s proposal to withhold from the city all tax collections made on liquor sales at bars and restaurants.

“That has been a steady and many cases growing source of revenue for the city,” Corliss said.

The city is estimated to receive about $1.7 million in liquor taxes in 2009. Under the governor’s plan, the city would receive none of the taxes after July 1 — the start of the state’s fiscal year. Corliss estimates that would cost the city about $850,000 in tax revenue in 2009.

The liquor tax money is used to fund the city’s swimming pool operations, police officers who serve as school resource officers, and a variety of social service programs that deal with youths and the prevention of drug and alcohol abuse.

Corliss is estimating another $250,000 would be lost under Sebelius’ proposal to eliminate a special state payment meant to compensate local governments for the recent elimination of taxes on business equipment and machinery. Some of that money goes to support the Lawrence Public Library.

Douglas County Administrator Craig Weinaug said he’s worried about secondary impacts from the proposed cuts. He said state cuts to social service agencies could make it more likely that those agencies will turn to local governments for help.

But Weinaug said the state budget news did not catch him by surprise.

“With the kind of crisis the state is in, it is inevitable that they would have to look at these sort of things,” Weinaug said.

City commissioners at their Tuesday evening meeting vowed to follow the budget process closely, and start working on a “worst-case scenario” of how the city would address any budget shortfall.

Journal-World reporter Scott Rothschild contributed to this report.

Comments

igby 6 years, 3 months ago

She reminds me on Petula Clark, in 1964, singing "DownTown". Lol.

gr 6 years, 3 months ago

"City Manager David Corliss said he’s most concerned about the governor’s proposal to withhold from the city all tax collections made on liquor sales at bars and restaurants."Waaaaaaaa. Maybe if there is no financial advantage, there is no reason to license poison.

flyin_squirrel 6 years, 3 months ago

Or maybe the city needs to quit doing the Alcoholic Beverage Controls job (state agency) of monitoring all bars. Currently Lawrence has 2 to 4 police officers on "Bar Patrol" Thursday thru Saturday. Why should we be paying these officers if the state isn't giving the city the liquor taxes? These officers are better served looking for drunk drivers than doing ABC's job.We are the only Kansas city that uses our officers in this way.

cowboy 6 years, 3 months ago

As the financial poo hits the fan...It should be entertaining to watch the inept city management try to find some budget cuts. They could not do this in better times and i doubt the have the kahunas to accomplish it now.

fu7il3 6 years, 3 months ago

Gee, I'm sure glad you all wanted to keep the T.

ksarmychick 6 years, 3 months ago

I for one am amused that the money from the sale of liquor goes into a program to stop youth from drinking....

Chris Ogle 6 years, 3 months ago

I am in debt up to my eyeballs. Somebody help me.

Chris Ogle 6 years, 3 months ago

How did we get in this mess?? Just look at the photo.

Leslie Swearingen 6 years, 3 months ago

ese, now we have three sister cities, aren't family supposed to help family. I suggest someone at city hall go to Western Union. Now.

jafs 6 years, 3 months ago

How is it determined where the sales taxes go?I thought they were city taxes, not state ones.The state gets some property tax revenue, and state income tax.

Jeremy Lichtenauer 6 years, 3 months ago

Core Services!!!How many tens-of-thousands of dollars did the city spend to put grates around trees downtown. What did grate installation around trees fix, repair, or improve?Why does Corli$$ continue to fix things that arent broken???? Quit wasting precious tax dollars and expecting the city employees and their families to bear the burden of ineptness!!!

Godot 6 years, 3 months ago

The state sales tax is 6 per cent.The answer is simple; Lawrence will have to add a 6% city sales tax on liquor.

Godot 6 years, 3 months ago

my bad. There is a separate liquor tax, depending on the type. Just an extra .18 percent on beer. No big deal.

OldEnuf2BYurDad 6 years, 3 months ago

I can only imagine how hard this will hit Manhattan.

Godot 6 years, 3 months ago

$55,555,555??? For a town of less than 100,000 people? I must have a decimal in the wrong place.

lawthing 6 years, 3 months ago

Why is the City no longer getting this tax money? Is this a punishment for something we are not being told about?

lawthing 6 years, 3 months ago

This money goes to pay for the school resource officers! Where will the Police dept put the officers with departmental issues if they cant put them in schools?

independent_rebel 6 years, 3 months ago

Well, I wonder who will get the shaft from the City if they lose funding. It sure won't be the homeless population--formally known as "citizens from other cities." It sure won't be the developers who believe we need yet another apartment complex (here's an idea: for every apartment complex approved one of the older ones must be leveled otherwise more slums like the ones behind Hobby Lobby and Applebee's on Iowa will appear).It won't be the money the city spends on "art" because we know that in tough economic times we desparately need to gaze at chunks of metal molded together in funny shapes to complete are intellectual brainwashing.It won't be the money the city spends on flowers and sod and flags and tax abatements and races.Nah, the people who will be getting the shaft are the taxpayers and the city employees.

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