The Virginian Pilot reported today that the budget deficit for Norfolk for the fiscal year beginning July 1, 2008 is expected to be a minimum of $18.6 million.
Based on economic forecasts, if the city does not give employees raises, start new programs or fund new projects, it will need to find another $18.6 million beginning July 1 to balance the budget, Assistant City Manager Marcus Jones said.
Just about anyone with a calculator could have seen this coming. While the blame may be placed on the 16-cent reduction in the real estate tax, the more likely explanation is the giveaways and wasteful spending that Norfolk has done. Yes, I understand that economic development takes time to return the money, but right now, we have a shortfall that will be even larger when the raises are included. It seems to me that rather than spend the windfall the city has enjoyed over the past few years as the result of rising real estate assessments, they would have saved some of it for a rainy day. And its raining now.
So how will Norfolk close the deficit? An increase in the real estate tax rate is unlikely. Look for an increase in fees and locally-controlled taxes, such as the cigarette tax and the personal property tax.
City Manager Regina Williams will be presenting the balanced budget to council on April 8. After two public hearings and three work sessions, council will vote on the budget on May 13.
In case you didn’t notice, that vote takes place after the May 6 council elections.
VIVIAN J. PAIGE | All Politics is Local 
No doubt the assessment for my dental equipment will rise from three times its fair market value to four times so it can generate more property tax.
Why is the only way Norfolk can ever close a gap is by raising taxes?
When my revenue is short, I delay some purchases, economize on supplies, and reevaluate staffing needs, just like any other business, rather than raise prices and further lose market share. Why can’t Norfolk do the same?
Oh yeah, that’s right, they can send men with guns to force you to pay their prices.
Check out HB 328. If it becomes law, May elections are a thing of the past.
HMR – I have a post already written about that š
Don – I don’t disagree. I just gave you what I think they will do.