Mayor's team presents $118M midyear package; cuts and revenue measures lower next-year shortfall but $461M remains

Noni Coloretti, the mayor's budget director, presented a midyear package the administration said closes $118 million of current-year pressure while cutting roughly $115 million of ongoing costs that would reduce part of the FY2009—2010 projected shortfall. Coloretti told the committee the city's projected FY2009—2010 shortfall is about $575.6 million; the mayor's midyear actions reduce the immediate-year need and lower the ongoing gap by roughly $115 million to an estimated $461 million.

The package blends revenue and expenditure moves. Coloretti described about $47 million of near-term revenue opportunities (including year-end close truing and some department recoveries) and $58 million of non-service reductions (vacant-position salary savings, freezes to unspent equipment/technology budgets, and postponement of capital starts). The Department of Public Health reported state cuts that reduced expected revenues and proposed targeted contract reductions, while Human Services Agency, Sheriff, Police and Recreation & Park outlined specific program and personnel savings; HSA described 71 eliminated positions across entitlement and administrative areas and said some cuts will lengthen client wait times rather than reduce benefits.

Coloretti warned the state budget outlook is a major unknown and said the administration would issue June-like department targets ("12.5% required target across the board and another 12.5% contingency") as it prepares next year's budget. Multiple supervisors asked for program-by-program lists, details on frozen add-backs, and the list of positions to be affected; the administration and Controller agreed to provide more granular breakdowns and bring back the package for further review at the committee's next hearing.