Buckeye Officials Taking Action on Revenue Shortfalls, Eliminating Vacancies, Salary Reductions; Department Directors Now Working on Budget Targets

Continuing declining revenues have prompted budget reductions by Town of Buckeye management in the past week that will cut the projected budget deficit in June of next year by some $3 million.

Town Finance Director Gail Reese said Tuesday 13 vacant non-public safety positions have been eliminated; in addition, overtime has been eliminated and town-wide operating costs have been reduced by $1.5 million. There are also new limitations on out-of-state travel and all training programs.

The Town is also targeting an across-the-board wage reduction of zero to 15 percent based on salary levels in January.

"Department directors have been provided their 2009-2010 expenditure reduction targets and have begun working with their employees to look for creative ways to meet those targets," Reese said.

The departments will also look for ways to reduce spending for the 2010-2011 fiscal year, when the projected deficit would be approximately $3.7 million, Reese added.

Interim Town Manager Stephen Cleveland said those department target expenditures are due in his office Dec. 3. That will signal the start of the second budgeting phase – a thorough scrutiny of the proposed department budgets.

"In our budgeting process, each department has the responsibility to address how best to restructure their service delivery," Cleveland said. "They are charged with reaching or exceeding while maintaining the highest level of services possible.

"It is a challenging task, but I am confident that our employees will work diligently to meet those targets with the least impact on employees."

The housing construction downturn and continuing decreased revenue streams have caused the continuing projected budget deficits. However, Reese said the town’s financial condition would have been worse had town management not made almost $8.6 million in budget reductions in November 2008.

During those rounds of cuts, some three dozen employees were laid off. No sworn personnel in the Buckeye Police and Fire Departments were laid off at that time.

When Reese presented the budget information to the Town Council last week, she indicated that layoffs may be necessary if departments do not reduce expenditures sufficiently for the next two years.

The reductions made in the past week should have a positive impact on the budgeting process.

The final budget numbers should be drafted by the end of the year, she added.

No final decisions will be made on any layoffs until all department budgets are scrutinized to determine if they achieved target levels.