City girds for budget, pay cuts

Phoenix facing multimillion-dollar deficit after 3 years of upbeat forecasts

Unless Phoenix cuts wages and benefits for employees or raises taxes, city officials warn, it may have to slash services by about $29 million, closing swimming pools and senior centers and gutting a swath of other popular programs.

City Manager Ed Zuercher released his proposed budget late Thursday, outlining reductions needed to cover a $37.7 million deficit projected for the upcoming fiscal year. The shortfall is largely the result of lower-than-expected revenue growth and rising employee costs, including pensions and insurance, he said.

The deficit comes after three years of upbeat budget projec- tions that led the city to restore some of the services cut during the Great Recession. Phoenix had been steadily climbing back from an unprecedented $277 million deficit that hit during the depths of the downturn.

Zuercher’s plan drew varying degrees of skepticism and outrage from union leaders and elected officials. There’s a widespread sentiment that resi- dents and employees have sacrificed in recent years but are being punished for City Hall’s planning mistakes, principally its overly optimistic estimates for sales-tax growth.

“There’s something not adding up,” said Councilman Michael Nowakowski, who represents southwest Phoenix. “I

See BUDGET CUTS, Page A6