ECONOMY FORCES BUDGET ADJUSTMENTS

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, February 27, 1992                   TAG: 9202270440
SECTION: NEIGHBORS                    PAGE: W4   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Short
ECONOMY FORCES BUDGET ADJUSTMENTS
Salem City Council approved adjustments to the city's 1991-92 budget Monday, forcing a dip into its unappropriated balance, usually maintained for emergencies.
"Economic reality" required the city to re-evaluate its $58 million budget for the current fiscal year, Finance Director Frank Turk told council.
"All of the adjustments were based on the continuing economic downturn, the state's budgetary response to the economy, unforeseen circumstances and appropriations made by council," Turk said.
The city will be forced to use $495,000 from this year's unappropriated balance to adjust the current fiscal year's budget. About $375,000 of that is needed because of a drop in anticipated revenues, Turk said, citing several examples:
A $175,000 decrease in anticipated personal property tax revenue, primarily the result of a slowdown in buying and selling cars.
A $65,000 reduction in expected interest income.
A $125,000 decrease in state revenue. - LESLIE TAYLOR

by Bhavesh Jinadra by CNB