Newport Balances Budget by Cutting $8 Million

As they passed a budget balanced on $8 million in cuts on Tuesday, Newport Beach City Council members already were thinking about next year’s spending plan for the city.

“This year’s cuts are half the story,” Mayor Mike Henn said before the council voted unanimously to pass the $255-million budget for 2011-12. He predicted another $7 to $8 million in reductions will be needed in the 2012-13 fiscal year.

The city relied on layoffs, eliminating vacant positions, restructuring departments and contracting out for services to balance the budget this year. City reserves went untouched.

Despite losing people and positions, officials have said they don’t think residents will notice a decrease in the quality of city services.  Some departments have been restructured and job duties revamped to handle the changes.

“This was not an easy budget,” Henn said. “Every single department in the city did a good job … trying to meet the goals we’re talking about here.”

For next year, Henn said, staff would have to use a “higher level of diligence” in finding ways to balance the budget because obvious targets for cuts, such as eliminating vacant positions, will not be there.

Among things that should be considered, he said, are more contracting out for services and collaborating with other municipalities in the region.

Councilwoman Leslie Daigle said such collaboration——is a "viable way to achieve savings.”