State budget woes being felt by Elk Grove

During last week’s regular city council meeting, Elk Grove City Manger Laura Gill delivered an update on the city’s 2012 budget. While the news delivered was a mixed bag, it could spell concern for the city as this years state finances develop.

(See video of Gill’s comments below).

In her report, Gill noted that because the 2009 vehicle licensing fee increase was not renewed in this year’s state budget, the city will be receiving approximately $500,000 less from the state. Gill added that this would be partially offset by a $226,000 grant earmarked for law enforcement.

On the positive side, Gill said that the city received $420,000 more in cable franchise fees than budgeted for.

Many budget authorities have pointed out that the state budget has been based on optimistic revenue growth and that if those estimates don’t pan out, more reductions to the state budget could be made.