Thu February 16, 2012
Omaha ends 2011 budget year with projected $740,000 deficit
The city of Omaha ended 2011 with a $740,000 budget deficit.
City officials released the preliminary fourth quarter financial report Thursday. The report says Omaha’s lack of a new contract with the fire union cost the city two million dollars. The City Council rejected a new contract with the fire union last year. Since then, a ruling from the Commission of Industrial Relations cost the city of Omaha $3.2 million.
Mayor Jim Suttle says the deficit will continue to grow if a new contract isn’t approved.“It’s going to be very difficult for this city to plan for the future on our financials if this is the way we’re going to do things. And we need collaboration every step of the way. The financials of the city are sensitive, and there is a cause and effect to the things we do.”
The city will use funds from the cash reserve to make up the $740,000 lost in 2011. Suttle says the impact on the first quarter 2012 budget isn’t yet known.
The final report is expected in early April.