Ypsilanti looks at $1.4M in budget cuts to address 'dire' financial situation

The city of Ypsilanti's financial picture has never been more dire, with projections that the budget deficit could grow to $5.2 million by 2015 if more cuts aren't made, City Manager Ed Koryzno said Monday night.

To lessen the impact of future budget shortfalls, the city is exploring cuts now.

The Ypsilanti City Council decided Monday night to make more than $1.4 million in budget cuts in 2011 during the first of three goal-setting meetings to discuss ways to balance the city’s budget.

Koryzno presented council members with a five-year budget projection. The city's projections show $14.9 million in projected revenues in fiscal year 2010, and $14.7 million in expenditures.

By fiscal year 2011, expenditures overtake expenses, with $13.1 million coming in and $13.2 going out. The gap widens each year until the deficit could potentially grow to $5,202,868 by 2015.

“The challenge we have is the finances of the state and city have never been more dire,” he said. “We have this looming deficit - the staff needs direction in how to we face it.”

Koryzno presented the council with two possible strategies for easing the budget problems - a choice between making preventative cuts now for the 2011 fiscal year or waiting until the deficit grows to more than $1.4 million in 2012.

By making cuts early, Koryzno said the city would have to cut a total of about $6.2 million through 2015. By waiting, the cuts would total more than $8 million by 2015.

“Do we cut sooner than we absolutely have to to accrue savings or do we wait?” he asked.

Most council members said they support making preventative cuts, though none were excited about the choices to be made.

“It’s a painful time,” Mayor Paul Schreiber said. “Our job is to try to do the best with what we have.”

Koryzno asked council members to review last year’s goals and reassess its priorities for next year. Though no official decisions were made, he said public safety - which makes up 55 percent of the city’s budget - will have to face cuts.

“Choices are narrowing in reducing personnel,” he said.

Koryzno said he will present council members with options on where to make those cuts at its next meeting on Dec. 7.

Residents who attended the meeting noted their support of their local government, but expressed concerns about the future of their city.

Ypsilanti resident Bob Levy said the police and fire department are crucial to keeping the city a place where people want to live.

“If you don’t fund these guys, the next crook on the street could be going after you,” he said. “Quality of life is key.”

Hui Li, a political science professor at Eastern Michigan University, said she thought the meeting was a good start to future decisions.

“I think it was a very good conversation tonight,” she said. “I think the next step is how to cut the budget. There needs to be a lot of compromise, I think it’s going to be really hard.”