City budget shortfall forecast at $30M

AUSTIN (KXAN) - The City of Austin prepares to battle a budget shortfall for 2010 forecast at anywhere between $30 million and $40 million, according to Austin City Manager Marc Ott.

The city manager is presenting a report regarding these numbers to the city council Wednesday morning, and the shortfall figure is based on the rollback tax rate.

City officials said the exact estimated shortfall is $29.6 million at the rollback rate. However, without the rollback, the city would be looking at shortfall of an estimated $43.1 million.

The Wednesday announcement by Ott comes on the heels of a Forbes-magazine ranking that seated Austin at the top spot of the nationwide list of best metropolitan job markets.

The expected budget shortfall is sobering for those who were prompted to call the state, and more importantly the city, recession-proof after receiving the reputable ranking.