Economic woes
11:15 am
Thu January 12, 2012

Tacoma’s finances are even worse than it had predicted, review finds

Tacoma’s 31-million-dollar predicted budget shortfall might be even worse than expected.  An outside review done by Herbert Research has found that Tacoma actually faces a 32-million dollar deficit of the current budget. 

But officials from the research firm say that they did not take into account any of the recent actions taken by the city to generate revenue. 

Actions such as the 14 layoffs the city did on Friday, along with the 36 city employees who were demoted, transferred or voluntarily retired. 

The News Tribune of Tacoma reports that the city council called for the outside budget review after public employee unions and others questioned the budget projections.  Labor unions opposed the deep budget cuts planned by Interim city manager Rey Arellano, who used the budget deficit to justify layoffs, including the controversial proposal to lay off more than 100 city police and fire employees. 

Interim city manager Rey Arellano will step down from the position next month.  After a national search, the Tacoma City Council has approved a 2-year contract for T.C. Broadnax to become the new city manager.