The Santa Cruz City Council has approved a staff proposal to create a proposed austerity budget, reducing next years’ city spending by $6 million as a result of the COVID pandemic.
Right now, the city expects to lose over $19 million in revenue over a three-year period. Part of that money will be offset by the $2.7 million the city had on hand when the pandemic began.
The Tuesday council budget update did not offer specifics on how the city would cover this fiscal year’s $10.4 million deficit. Cutbacks, a hiring freeze, drawing down reserves and city department spending delays are expected.
A draft budget for the fiscal year beginning July 1 is scheduled to be published this week, with council hearings on May 12 and May 13, and a planned budget adoption June 23.
