Sat, Nov 21 2009
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Published October 29, 2009 10:29 am - City manager: Statewide cut hurts state most By ANDY GOODELL The Oskaloosa Herald OSKALOOSA — They’re in a worse boat than Oskaloosa.
At the state level, it appears Gov. Chet Culver’s 10 percent statewide cut will be slicing deepest. “I do not envy his position,” said Oskaloosa City Manger Michael Schrock Jr. “It’s not easy when you’re talking about people’s jobs.” Schrock said any possible cuts from the state could impact services in Oskaloosa, but that remains to be seen. For now, Schrock seemed optimistic. “Fortunately for us, we’re not reliant on the same revenue sources as the state,” explained Schrock. “There’s tough times all the way around. But, if we have patience, we’ll get through it.” The state of Iowa relies on income tax, while the city of Oskaloosa gets much of its revenue from property tax. Oskaloosa also receives a local option sales tax given to the Oskaloosa School District, as well as a hotel/motel tax, which goes to MCRF. “We’re a little buffered,” said Schrock. “As long as home values are up, we’ll see the same revenue.” Before Culver’s announcement of the finalized plan for how to implement the cut was announced Wednesday afternoon, one thing was certain. The hardest hit area to Oskaloosa’s city budget would come in the form of a homestead tax reimbursement cut. This means the city will receive about $7,242 less for their budget in this one area for fiscal year 2010. Although the cut to Oskaloosa’s budget isn’t much when considering the overall budget, Schrock is still concerned about what the state will do in fiscal year 2011. “We would just absorb that cut (for fiscal year 2010),” said Schrock Wednesday. “It shows the state has interest to cut more in the future. We need to voice our concerns on that.” Schrock said he will continue to keep in contact with the Iowa League of Cities to find out how to work with the specifics of the 10 percent statewide cut. —————— Herald City Editor Andy Goodell can be reached at news2@oskyherald.com
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© 2008, Oskaloosa Herald
Oskaloosa, Iowa 
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