Despite $1.7-Million Savings, City Still Operating MILLION$ in the Red

Between the City of Fullerton's Press Release and the Orange County Register, you would think that last night's passage of employee MOU labor agreements was the best thing to happen in Fullerton in many months.  Maybe for the employees it is.

The city's press release is quick to state that the City will "save" nearly $1.7-million in FY2011-12 and FY2012-13. 

The problem is that the budget mentioned had an $8-MILLION deficit. 

Between these MOUs and some recent financial reports with some cost-saving measures, the City has closed that gap to a little less than $6-MILLION.

But there still exists a multi-million dollar deficit.  Unless someone can show me the financial reports that explain how that gap was closed, I'm inclined to continue my fight to cut at City Hall.

Remember back on April 26 of this year when Administrative Manager Julia James said the budget was short by $8-million?  And remember when she said the City would make up the deficit by renegotiating with employees??  You don't?  Well, here is the report she issued, read DISCUSSION:

click to see full-size

click to see full-size

It was a nice thought but a complete failure.  We are still $6-MILLION in the red.