On High Point’s $8 million budget deficit: If High Point says about $2.5 million of shared revenue with Guilford County is at risk and may have to fund more road maintenance…?

High Point tries to close widening budget gap

The city is facing an estimated $8 million budget deficit through the next two years, as the recession has brought about lower-than-expected revenues.

…A $3 million shortfall is projected for the current $320.4 million budget, and officials forecast a $5 million shortfall through 2010-11. In addition to sales tax, other funding sources —such as beer/wine and franchise revenues, along with current or planned private construction activity — have dried up. At the same time, the city faces increases in employer retirement contribution rates and health insurance costs that should total about $2.2 million.

About $2.5 million in shared revenues with Guilford County and the state could be at risk, and the city could be forced to take over state road maintenance responsibility at a cost of about $1 million per year.

…Although not recommended, transferring money from the electric or water and sewer funds to the general fund is another option.

…city officials are early in the process of evaluating possible changes in existing service levels, including reducing hours in the library and recreation centers, cutting back on grass mowing and going to every-other-week recycling pickups.

High Point Enterprise