Birmingham prepares for $73 million shortfall

 Birmingham prepares for $73 million shortfall
Lester Smith, Birmingham city finances (Source: City of Birmingham)

BIRMINGHAM, Ala. (WBRC) - The city of Birmingham is looking at how to deal with a budget shortfall for the next fiscal year.

City budgets are suffering nationwide due to the pandemic, and today we learned just how far behind Birmingham might be.

In fiscal year 2020, the city of Birmingham passed an operating budget of 451 million dollars. This year, they stand to fall $73 million short of anticipated revenue, or 16% of last year’s budget.

That's forcing the city to look at ways to cut costs, today Mayor Woodfin revealed those cuts would come to 8 departments.

"Is it even enough... to where if everything gets at least a little better, will we be like okay?" asked Valerie Abbott, city councilwoman.

“We have cash on hand. The question is how long is this economic crisis going to last?,” answered Lester Smith, city finances.

Mayor Woodfin is expected to present a budget in two weeks, and the final version is due by October.

Copyright 2020 WBRC. All rights reserved.