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Raleigh to cut capital projects to cover shortfall

Posted January 7, 2009

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— City officials plan to cut spending on capital projects like street repair and park maintenance to help cover a projected $15 million budget deficit, Mayor Charles Meeker said.

The city also has enacted hiring freeze in all departments except for public safety, Meeker said.

Lower-than-expected sales tax revenue and less fees from fewer building permits have created the deficit, he said.

The City Council will revisit the city's financial status in February to determine if more cuts are needed.

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  • ncwebguy Jan 7, 2009

    Wake County, not the City of Raleigh, built the convention center, paid for with hotels and meals taxes, not property taxes. As hotel and meals tax revenue tied to the new convention center is significantly more than the old CC, it is in fact paying for itself.

    Hillsborough Street roundabouts are funded by a bond referendum passed by the majority of voters years ago. Those funds are not directly related to the yearly collections from property taxes, etc.

    There *is* money, just not as much as expected. It is obvious that reality is too difficult to understand for some people on here.

  • Steve Crisp Jan 7, 2009

    Notice, these people are cutting items already budgeted due to lessened collections of money. Do you realize all that means is that their entire budget is based on spending money they don't have yet? They spend based on expectations and not what they actually have on hand.

    Individuals who do that generally end up in foreclosure or bankruptcy court.

  • WHEEL Jan 7, 2009

    Firing Russell Allen would not balance the budget but it would be a start.

  • DontLikeTheSocialistObama Jan 7, 2009

    If they hadn't wasted all of the money on the white elephant convention center that isn't paying for itself, they wouldn't have this problem.

  • SaveEnergyMan Jan 7, 2009

    But last I heard they are still going to do that stupid round-about idea for Hillsborough Street. When will they realize no money means no money?