Johnson needs money from city savings to have balanced budget and no new taxes

Jackson Mayor Harvey Johnson Jr. unveiled a proposed fiscal 2010 budget Wednesday that contained no new taxes, no layoffs and relatively modest cuts, despite “challenging times” for the city’s revenues.

“The city of Jackson continues to be financially stable, despite the ongoing economic challenges cities like ours are facing across this country during this recession,” Johnson said during a 20-minute budget address before a standing-room-only crowd at City Hall.

While he did not address it in detail in his speech, Johnson proposes to balance the budget by spending nearly $4.2 million of the city’s savings. That would leave about $8 million in reserve, the amount required by the City Council to be held in savings as an emergency fund and to preserve the city’s bond rating.

“We have not and will not go beyond that amount without council approval,” Johnson said.

However, Johnson said the money was needed to balance the budget without raising taxes.