City officials are supporting a proposed ballot initiative that aims to ban the state from taking or borrowing local government monies. Mayor Kevin Johnson stood with three city councilmembers and local public safety officials outside City Hall to publicize the initiative in a press conference Tuesday morning. California is in the process of borrowing $12 million of the city’s tax funds as part of last year’s state budget crisis, according to city finance director Leyne Milstein. By the end of the month, the city will have given that total amount to the state, she said. Don Cavier, finance director for the Sacramento Housing and Redevelopment Agency, said that the state plans to take $19

The Sacramento City Council is open to the idea of consolidating some of the services offered by the city and county governments. Councilmembers unanimously decided Tuesday that city staff should analyze the issue over the next 90 days, and then bring their findings to the City Council. The discussion about consolidating services is moving forward as both the city and county struggle with severe budget problems. Councilman Rob Fong strongly supported the idea. If the city and county can have “virtually identical” regulatory processes for businesses, then organizations like the Sacramento Area Commerce & Trade Organization and the city and county’s economic development departments could m

Sacramento’s city and county governments are considering consolidating some of their services to save money as they wrestle with tough budgets. The City Council and Board of Supervisors will discuss the idea at their public meetings Tuesday. Combining services could help local governments save money in the long term, said Gus Vina, assistant city manager. It also could cut redundancies, Vina said, noting that the city and county offer several similar services. For example, the county and city both provide animal control and code enforcement services, he said. The city and county have not yet selected which services to combine. At this point, city and county officials are asking elected r

Now that Sacramento’s 2009 / 2010 budget has been approved, what does the city’s financial picture look like for next year? The Sacramento Press sat down with Leyne Milstein, the city’s finance director, to ask that question. Milstein outlined next year’s projected $30 million deficit and commented on the city’s “structural deficit.” While Milstein grapples with severe city budget gaps that are tens of millions of dollars, she has a self-described “lighter side” that is evident in her choice of office decorations. An interview with Milstein would be incomplete without mention of her Magic 8 Ball collection. Sacramento Press: What is the city’s financial outlook for the next year? Leyne

The past week saw several major developments in Sacramento’s budget crisis, from the city’s forecasts of major deficits in 2010 to a campaign by residents against proposed budget cuts to local parks. Here’s a roundup of the past week’s budget news: Huge deficit predicted for 2010 The Sacramento City Council is studying a slew of proposed cuts to resolve its $50 million deficit. But once the city deals with the current $50 million deficit, it will face a projected $30 million deficit for the 2010/2011 fiscal year, according to Leyne Milstein, the city’s finance director. “Gap will grow to $30 million as revenues continue to decline and expenses increase in FY 2010/2011,” Milstein wrote i

City management will still need to lay off staff even if all of its unions make concessions, according to the city’s finance director. Sacramento Finance Director Leyne Milstein said she could not say how many layoffs would be needed if all the unions make concessions. That’s because the City Council will make the final decisions on cuts to services and programs, Milstein said. Concessions from the unions will not create enough savings to avoid layoffs, Milstein said. The city’s proposed budget aims to resolve a $50 million deficit. If the unions do not make concessions, city management plans to lay off 189 city employees. At its May 19 meeting, the City Council will address the propo