South Gate : $577,156 Cut From Budget to Offset Impending Deficit

Financially strapped South Gate will trim $577,156 from its current budget to help reduce a deficit that might reach $1.7 million in the next fiscal year because of declining revenue.

“The cuts proposed are comprehensive and represent a cutting to the bone of budgeted expenses, short of laying off personnel,” City Manager Todd Argow told the City Council before it authorized the cuts.

Argow said the savings will come through such things as not filling vacant positions and reductions in supplies, outside services, and maintenance and repairs. He said that a hiring freeze may have to be implemented if the economy continues to deteriorate.

Last month, Argow told the council that the current general fund budget of $19.6 million will be balanced, but he forecast a 1992-93 deficit unless the city cuts spending or expands its revenue base. The economic downturn is being cited as the reason for the decline in revenue.