LGA cuts could increase taxes, slash city services
Published 9:06 am Wednesday, January 19, 2011
In a move that city officials hope will help prevent future tax hikes and community program cuts, City Council passed a resolution in support of Local Government Aid (LGA) Tuesday evening.
City Administrator Jim Hurm said the purpose of the resolution is to inform the State Legislature and governor of the city’s need for LGA in hopes the program will not sustain major cuts this legislative session.
“It’s time for us to step up to the plate and say enough is enough,” Hurm said.
The resolution comes after Republicans in the Legislature announced they want to make $1 billion in budget cuts — some of which will hit LGA.
LGA comprises over half of the Austin city budget. If the Legislature were to cut the program altogether, city property taxes would have to be increased by 300 percent or city services would have to be cut in half.
The resolution passed through council with only Marian Clennon, Ward 3 council member, voting no.
“I’m for the LGA, but I feel the council should be a little more proactive once we reach 50 percent of our budget; we should be a little more proactive on not depending on it,” Clennon said. “I still feel it’s highly dangerous of us to be getting as much (aid) as we do because the state can come and slash as much as they want to.”
Hurm said the resolution puts the City Council on record asking to be “left alone.”
“What the heck are we going to do with 52 percent of our revenue pulled out from under us?” Hurm said. “Stop hitting us four times harder than you do your other state programs.”