Early in the budget process, staff estimated a $24 million FY 2017 budget shortfall as a result of continuing slow growth in revenues and high-demand expenditure needs, particularly in the areas of school enrollment, employee compensation, and capital infrastructure needs. In order to address this shortfall, the City Manager and the Office of Management and Budget instructed departments to develop expenditure reduction options equal to 5% of their FY 2016 General Fund budgets (excluding some public safety sworn positions), resulting in over $12 million in reduction options. Approximately $8.3 million of those reductions were included in the proposed budget as efficiency savings or lower priority service reductions. Another $3.8 million in drafted potential expenditure reductions were ultimately not included in the FY 2017 Proposed Budget and are provided as an attachment. In general, these reductions were not recommended as the reductions represented priority programs and services whose funding was warranted in comparison to other competing reductions and potential additions.
Attachment I - Reduction Proposals Not Taken