All articles tagged with #budget gap
The US experienced its third-largest fiscal deficit on record this year, despite a record surge in tariff revenue driven by Trump's tariff hikes, with August tariffs reaching $30 billion. The total deficit through August is nearly $2 trillion, but some improvement is expected by year's end. Corporate tax receipts declined in August, and the future of tariffs depends on a Supreme Court decision, which could significantly impact revenue.
Germany faces a significant €170 billion budget deficit despite engaging in substantial borrowing, highlighting ongoing fiscal challenges for the country.
Metro General Manager Randy Clarke warned that if a $750 million budget gap is not closed by the first half of 2024, Metro may have to cut 10 stations, eliminate 67 bus lines, reduce train frequency, increase fares and parking fees by 20%, freeze salary and wage increases, and lay off 2,286 employees. The budget shortfall is due to problems with dedicated funding, ridership, and inflation. Metro is urging jurisdictional partners to find a sustainable funding source to avoid these drastic service and job cuts.
Metro is facing a projected $750 million budget gap, and the transit agency is warning of potential layoffs, a hiring freeze, and devastating service cuts if the gap is not closed. The combination of the coronavirus pandemic, record inflation, and a decline in ridership has severely impacted Metro's finances. The agency may have to issue notices to employees about potential layoffs and staff reductions, and tough choices will have to be made unless there is an increase in funding from local jurisdictions. Metro leaders are urging for a long-term, sustainable funding solution to avert a fiscal crisis.
Chicago is facing a budget gap of $538 million for 2024, according to Mayor Brandon Johnson. However, the city will not raise property taxes this year to generate new revenue. The shortfall is attributed to the complexity of the financial situation inherited by Johnson's administration, including the impact of increased benchmark interest rates and costs associated with supporting asylum seekers. The city plans to adopt a multifaceted approach to close the gap, including expenditure reviews, revenue enhancement measures, and potential reallocation of resources. Specific details of the plan will be released later this fall.
The California State University Board of Trustees is considering a proposal to increase tuition over the next five years, starting in fall 2024, at a rate of 6% per year. The first tuition hike would be $342 for full-time undergraduate students, with the price of tuition increasing by almost $2,000 by 2029. The proposal aims to provide tuition stability for students and support those in need of financial aid, generating an estimated $148 million in revenue in the first year. The tuition increase would not affect 60% of students already covered by grants and waivers. CSU officials argue that the hike is necessary to address a nearly $1.5 billion budget gap.
Metro is facing a $750 million budget gap in its operating budget due to inflation and the impact of the pandemic on ridership. Without new funding, the transit agency may have to make devastating service cuts, including longer wait times for trains and a system that closes at 9:30 every night, as well as slashing thousands of positions. Metro is the only major transit system without a dedicated source of funding and is in talks with local governors and D.C.'s mayor to find a solution.