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Duluth Council Takes Steps To Ease Budget Crunch

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Aug 26, 2008 7:55 am US/Central

Duluth Council Takes Steps To Ease Budget Crunch

DULUTH, Minn. (AP) ― The Duluth City Council has voted to transfer housing money as a way to ease the city's budget deficit.

Council member Greg Gilbert came up with the plan as a way to save jobs and city services.

Gilbert's plan sought to take about $1 million bound for the Housing Investment Fund, the Greater Downtown Council and Visit Duluth and redirect it into the city's general fund.

The council voted to divert about $600,000 from the Housing Investment Fund, which had been appropriated toward helping low-to-moderate-income homeowners with sewer line repairs.

After the measure passed, Gilbert withdrew requests to transfer money allocated to tourism and to the downtown council. Representatives of those industries had opposed redirecting that money.

It's unclear if the vote will prevent city employee layoffs and service cuts -- all part of Mayor Don Ness' plan to cover a $6.5 million budget deficit for 2008.


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