Fri November 21, 2008
Fed Forecast Amplifies Kansas City Shortfall Concerns
Kansas City, MO – The Kansas City city council set the wheels in motion for a comprehensive shared-use trails program yesterday, and resolved to develop more consistent parking policies to minimize downtown tow-aways. But a projected budget shortfall of $60 to 80 million loomed throughout their two meetings.
Federal Reserve economist George Kahn told the council members that fourth quarter sales will likely be down, and real recovery from the recession won't begin till the second half of 2009.
Budget chair Deb Herman noted that the Fed's forecast tends to reinforce one from city accountants last week. Herman said budget cuts are inevitable, "and frankly, when we go around the circle, if we try to save everyone's favorite program... favorite project... we are not cutting."
City Manager Wayne Cauthen agreed, saying the coming shortfall is worse than the one the council confronted when it took office.