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Report on state budget reductions
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Presented By: City Manager Hodgen.
Recommendation and Review
As has been expected, the Commonwealth has imposed reductions to their aid to localities for the current fiscal year. The city received notice of the amounts of those reductions on Monday, November 17.
The direct reduction to the city totals $148,463.00. The attached spreadsheet shows the service areas for which the reductions were imposed. In addition, as the city funds a number of "constitutional functions" jointly with Rockingham County, we will have a share in the reductions imposed on the county for court-related services, Sheriff, Jail Operations, Commonwealth Attorney's office, and Circuit Court Clerk. The city's share of the county reductions will be about $82,000.00.
The total reduction amount for FY 15 will be about $230,463.000. As part of the report on use of the year ending June 30, 2014, fund balance, the Finance Committee had recommended setting aside funds for the next several years to cover the anticipated state reductions, thus local funding is available to sustain these reductions.