Multi-Million Dollar Budget Shortfall

Contributor: Phillip Ohnemus
Updated: 11/03/2009 6:29 pm
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Interim Mayor Carole Smitherman did what she promised to do since day one, giving the public a full report on the city's finances.

Smitherman shared her recent findings regarding the city budget, letting folks know of a $20 million shortfall in Birmingham's operations budget.

"You can't hide $20 million from the public. It is what it is. If there is a shortfall, then that shortfall needs to be revealed so we can accurately portray the city's finances," said Smitherman.

Smitherman attributes the shortfall to a lack of communication between the former finance director Steve Sayler and the department heads.

The mayor's chief of staff, Deborah Vance-Bowie, says her office didn't know the severity of the shortfall until right before Langford's trial.

While bowie says the number is shocking, the shortfall was caught early enough to avoid potential crisis.

"There's obviously a sense of relief," said Vance-Bowie. "It's one of those things, you put it out there, you're relieved because now we have to fix it...it can be fixed."

Despite the shortfall, Smitherman says the city will be just fine. She says there's more than enough money in the reserve fund, which could be tapped as a last resort.

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