Friday, May 04, 2012
The total general fund, discretionary budget is around $400 million. It reduces general fund spending by $14.7 million. The proposed budget does not tap into the city's reserves, however, something Adams says would have threatened the AAA bond rating that keeps interest rates low on bond sales.
Adams says the cuts are required because of the lingering recession that has reduced property tax, business license and other general fund collections. Adams says the cuts are not as steep as they might have been because the City Council has reduced spending since the recession began in 2008.
In a last-minute decision, Adams is proposing to give $7.5 million to school districts within the city limits to help offset proposed budget cuts, including $5 million to the Portland Public Schools. Of that amount, $7 million comes from the general fund and $500,000 from other sources.
Read more at The Portland Tribune.