MEMPHIS, Tenn. — It looks like the city of Memphis will have to make some tough choices about what's most important in the budget.
The city council was updated on new federal guidance on where COVID relief aid funding can actually be spent.
Now, the city is trying to figure out where it can find $23 million.
Here’s the issue: $18 million of $160 million coming from the stimulus bill was planned for the city's general fund. But under the new guidance, the city is not sure how that money can actually be used.
The city is also not getting an additional $5 million that was expected from the state.
So, here are the three options being proposed:
- Use $23 million from the city's savings account to make up the deficit.
- Go with the original plan to use the $18 million from stimulus funding.
- Or cut $23 million from the city's budget, which means several job cuts.
The city administration is not considering raising the property tax.