The Alta City Council tabled action concerning new cuts in the 2003-04 city budget on Monday night, opting to wait one month and carefully consider how best to approach a projected loss of nearly $30,000 in state aid over the next fiscal year.
The Iowa House and Senate passed a bill at the end of the regular session two weeks ago that would cut $70 million in state funding to city and county governments. Termed the "government reinvention bill," it would eliminate $29,344 in funding from the City of Alta if Gov. Tom Vilsack signs his name to it.
If it passes, the new bill would cut $22,064 in consolidated payments to Alta, which include population allocation, moneys and credits and personal property tax replacement credits. There would also be cuts of $7,281 from the city in estimated franchise tax credits.
Options for City Council members include spreading cuts over several areas of the budget or concentrating on reducing one or two sections of the document. The city may also have to raise property taxes as a way to make up for the lost property tax replacement credit from the state.
If Vilsack signs the bill, Alta city leaders would have 30 days to review the 2003-04 budget before they would need to finalize any possible changes.