Shortfall worrisome, not overwhelming

We found out last week that the city of Sandpoint has an expected budget shortfall of about $400,000. Good to know, but certainly no disaster in these difficult times, with cities declaring bankruptcy, or, in case of Scranton, Pa., cutting all its workers to minimum wage.

Although the total budget is $39 million, the general fund budget, the one primarily under the control of the council is less than $10 million, near as I can tell. That means the shortfall is about 4 percent.

The federal budget is 34 percent short. California’s is 17 percent short. A 4-percent deficit should be fairly easy to manage.

On top of that, the city had a surplus in the general fund of about $2.5 million going into the current fiscal year. How much of that they have tapped this year,I don’t know, but I’m guessing most of it is left. If that’s true, then the council has quite a bit of flexibility.

They can cut areas that are over staffed for the need, if such exists. They can fund the shortfall with some of the surplus funds, considering that economic forecasts for both the U.S. and Idaho are looking positive for the next several years. Or, they can do a combination of both.

Clearly, the problem is worrisome, but not overwhelming.

BOB WYNHAUSEN

Sandpoint