Omaha Mayor Mike Fahey is asking all city departments to make cuts, saying Tuesday $4 million to $6 million must be removed from the budget plan for fiscal 2009.
Fahey wants proposals from from every city department as a way to survive the current national recession and avoid a budget shortfall. "By making these cuts now, we're trying to make sure we don't have to make more drastic cuts come February, March and April."
At a news conference, the mayor announced he's given department heads two weeks to come up with ideas on what they might be able to cut without sacrificing service and safety.
All departments are being ordered to trim their spending by two percent. "They will come back to me and the city finance director with their proposals. At that time, we will make the cuts necessary based on the priorities of the city."
The cuts will include the police and fire departments. "I think it's fair to say police and fire do make up 50 percent of the general fund, so a lot of the burden is going to fall on them," added Mayor Fahey.
“I'm really concerned they're gonna take our protection away,” says Carolyn Cook of Omaha. “It's already frightening."
One reason for the need in budget cuts is the city sales tax. It funds 46 percent of the city's revenue and Fahey believes it will remain flat in 2009. When asked if city services will be cut, Fahey said he can't predict what department heads will do, but that sacrifices are necessary.
"Anytime you cut, you're going to give up something. Now what that is, whether it's police cars or not buying a piece of equipment for public works, there's a lot of different things we can do."
The mayor said cuts will be prioritized and fighting crime is a top priority. So too is leaving the city solid for the next mayor in June. "To make sure we're doing these things upfront so the new administration coming in will not find themselves so much in a hole."
What do the mayoral candidates think? All three tell Channel 6 News they support the budget cuts. "There's no doubt about it, Omaha faces very serious financial difficulty and I liked the way in which the mayor approaches the problem,” said Hal Daub.
Jim Vokal also supports the mayor, as long as the cuts don't include one thing. "With the exception, I would not certainly support any cuts in staff from a police standpoint."
Jim Suttle isn't giving his thoughts on what to cut yet, but says in this difficult time one thing can help. "We need to have unity of purpose around our mayor. He is the center of the leadership for our city."
Mayor Fahey plans to review each department budget proposal and announce a final plan in two weeks. As to where the cuts will come from, city department heads Channel 6 News spoke to said it's just too soon to tell. The cuts would likely take effect in early 2009.
One Channel 6 viewer posed this question online: "Where are the priorities? We can build a $20 million bridge to nowhere?" That $20 million was federal funding, though the city did have to come up with $100,000 to make renovations to the park area surrounding the bridge.
As for maintaining the bridge, city officials say with low-energy LED lights and simple mowing and snow shoveling, those costs are minimal and they are shared with the city of Council Bluffs.
Omaha City Councilman Chuck Sigerson does see other waste, like $42,000 already approved for a streetcar study. "I said this was a waste of money. I studied trolleys all over America and I can tell you not a single one is operating in the black.”
Savings won't come from lower gas prices for city vehicles because officials locked in for a year in October at what was a good deal then, $2.41 a gallon. The metro average is now $1.61 a gallon.
A taxpayer advocate has his own suggestions, like scaling back retirement benefits and privatizing some departments. “We believe that the Public Works Department is a very good candidate for privatization, especially in their street improvement and restoration," says Doug Kagan.
Areas like snowplowing and pothole repair should not be affected, says Sigerson. "Those are things that have to be taken care of because potholes, in addition to being annoying, are public safety hazards."