Latest news with #budgetshortfall
BreakingNews.ie
6 days ago
- Business
- BreakingNews.ie
Northern Ireland's health service facing projected £600m budget shortfall
Northern Ireland's health service is expected to face a £600 million (€715 million) budget shortfall. Stormont Health Minister Mike Nesbitt described financial plans being finalised which will be 'unprecedented in their scale and ambition' and involve 'extremely difficult and painful savings measures'. Advertisement In a written statement to the Assembly on Wednesday afternoon, Mr Nesbitt said the projected £600 million is the 'scale of the gap between existing funding and what's needed to maintain services'. Northern Ireland's health service is facing a budget shortfall (Liam McBurney/PA) He told MLAs he will play his part and 'do everything I can to achieve a breakeven budget', but also urged the Executive and the Assembly to support him. 'My permanent secretary is finalising financial plans that will be unprecedented in their scale and ambition,' he said. 'They will involve an extremely difficult and indeed painful series of savings measures for HSC trusts. Advertisement 'I can assure the Assembly that I will drive forward savings to reduce the projected shortfall.' 'To repeat, I will play my part and do everything I can to achieve a breakeven budget. 'But I will need Executive and Assembly support.' Mr Nesbitt also confirmed he is ordering the paying of £200 million (€238 million) recommended pay increases despite not having the budget to cover it. Advertisement It includes 3.6 per cent for nurses and staff under Agenda for Change, 4 per cent for doctors, and 4 per cent plus £750 (€893) for resident doctors – formerly known as junior doctors. That requires a ministerial directive to be made to the department's permanent secretary to proceed despite not having the necessary budget. It will go to the Finance Minister, John O'Dowd, and potentially be passed to the Executive for approval. Mr Nesbitt told MLAs the move involves the risk of an overspend for the department, but that not paying the pay increases also involves risks. Advertisement 'There is an undeniable risk that the department could be on a path towards a potential overspend,' he said. 'I have also concluded that there are also substantial risks in not proceeding with the pay increases – the biggest risk is failing to deliver on my promise to deliver 'better outcomes'. 'I do not want health service staff to be demoralised by inaction and another year of uncertainty on pay. They deserve better than that. This is about treating with respect the people who keep us healthy, fix us when we are broken and keep us alive when death becomes a potential outcome. 'Falling behind pay levels across the water will also exacerbate challenges with recruitment and retention of health service staff.' Advertisement He added that pay parity with England for Agenda for Change staff is a 'well-established and hard-fought principle' that he intends to maintain. 'Failure to do so would undoubtedly lead to industrial action with all the disruption to patient care that will involve,' he said. 'Not to mention the negative impact on the focus to reduce waiting lists, or the overdue need to reform healthcare delivery. 'In short, the risk of a potential budget overspend must be balanced against the significant risk to service provision.' Mike Farrar, permanent secretary of the Department of Health in Northern Ireland at the department headquarters in Castle Buildings, Stormont Estate, east Belfast. (Rebecca Black/PA) Permanent secretary Mike Farrar said finding the £200 million for the pay award is a challenge. 'I have got a statutory duty as the accounting officer to point out to the minister that we don't have that in the budget which is what I've done,' he said. Mr Farrar said he is talking to colleagues from the Department of Finance, and expects the Executive to be involved. 'I'm hoping that if they can see how hard we're working to get our efficiencies, and that this plan that we're putting forward to reset the health and social care system is going to lead to a sustainable financial position, I'm hoping that they will somehow find the wherewithal to help me in the short term,' he added.
Yahoo
27-05-2025
- Automotive
- Yahoo
Lynnwood looks to make up multi-million dollar shortfall in expected revenue
Originally posted at City Council members are trying to figure out how to cover a $3 million shortfall in the Lynnwood budget. Lynnwood Mayor Christine Frizzell wrote in an email to council members that the city started 2025 with $3 million less than anticipated, The Lynnwood Times reported Tuesday. However, the media outlet noted that during an April finance meeting, it was reported the city's Ending General Fund Balance was $4.27 million below forecast. The Lynnwood Times contacted the city about the $1.27 million discrepancy in the reported shortfalls and is waiting to hear back. Frizzell cited 'the national environment of economic uncertainty' in her email as a reason for the shortfall, along with recent tariffs. To combat the multi-million dollar gap, Frizzell stated in her email that the city has asked that purchases or professional service contracts be delayed. 'We have asked that some purchases or professional service contracts be delayed, and we are reviewing each vacancy and not automatically filling these vacancies in our effort to gain some salary savings,' the mayor wrote, as reported by The Lynnwood Times. 'We are also closely monitoring all travel and training.' According to The Lynnwood Times, the city had projected a 14.8% increase in sales tax in April but instead saw a 25% drop. The media outlet noted a significant drop in Lynnwood car sales, citing Trump's 25% tariffs on imported vehicles such as SUVs, sedans, crossovers, cargo vans, and light trucks. The Lynnwood Times also suggested Tesla vandalism may have driven away business. In March, six vehicles at a Tesla dealership in Lynnwood were defaced with spray-painted swastikas and profanity. Follow Julia Dallas on X. Read her stories here. Submit news tips here.
CBS News
22-05-2025
- Business
- CBS News
Denver mayor announces furloughs amid $50 million budget shortfall this year
Denver Mayor Mike Johnston is blaming slow revenue growth and inflation for a $50 million budget shortfall for the remainder of this year and a $200 million budget shortfall for next year. Johnston spoke to city employees ahead of a scheduled public news conference at 11 a.m. Thursday, where he was expected to announce options amid the budget gap. CBS News Colorado Investigator Brian Maass has learned that in a meeting with city employees, Johnston said the city has been through some difficult times in the past five years, but that city workers "always showed up." WASHINGTON, DC- MARCH 5: Denver Mayor Mike Johnston testifies during a House Committee on Oversight and Government Reform hearing titled "A Hearing with Sanctuary City Mayors" in Washington, DC on March 5, 2025. Nathan Posner/Anadolu via Getty Images Johnston said "our revenues are flat" and there was zero growth in revenue last year, this year and anticipated zero growth next year. He said the plan is to decrease costs and look at options to generate revenue with an increase in tax revenue generation. Could be some bad news for @CityofDenver workers. @denversmayor is expected to tell them about furloughs and other budget issues . His talk starts 9:30 am- I am going to try to live tweet what he says here... so feel free to follow along @cbsnewscolorado — Brian Maass (@Briancbs4) May 22, 2025
BBC News
22-05-2025
- Business
- BBC News
Scotland's councils make cuts to plug £650m budget gap
Scotland's councils are facing a £647m budget shortfall this year despite an increase in government funding, a watchdog has Accounts Commission warned that funding had not kept pace with inflation, higher costs and increased demand for public authorities are making cuts, hiking taxes, raising charges and drawing on reserves to cover the budget gap, the commission found. It warned of further financial pressure on councils from public sector pay deals and a UK government increase in employers' National Insurance. Most of councils' revenue funding - used for day-to-day costs such as wages, schools, road maintenance and bin collections - comes from the government. The Scottish government is to provide £15.2bn of funding to local authorities in 2025-26, a 6% increase in real terms on the previous financial year. But mounting financial pressures means there will be a £647m gap between councils' predicted spending and the funding and income they receive, according to the Accounts Commission. This is up by £52m from 2024-25, with the commission forecasting a cumulative revenue budget gap of £997m over the next two years. To help plug the gap, every local authority in Scotland has increased council tax by at least 6%. It came after a nationwide freeze was lifted. The average increase was 9.6%, with Falkirk Council imposing the steepest hike of 15.6%.The commission said higher bills for local people meant there was a "greater expectation on the performance of local services", while an ageing population added further strain on services such as care. The report found that the biggest cumulative cuts were falling on corporate services (£68m) and children's services (£58m). With local authorities warning they will have to make further cuts in the future, the commission said this approach was unsustainable. 'Change at pace' Commission member Derek Yule told BBC Scotland News: "Council finances are precarious at the moment after years of funding challenges."We're looking at the ways in which councils have balanced their budgets and suggesting that that cannot continue in its current form."So councils need to look at how they can work with communities and work with partners to deliver change and to deliver change at pace."The commission reported that while overall capital funding – primarily used for buildings and infrastructure – had increased by 16% to £780m, it had not risen to previous warned local authorities would be heavily reliant on borrowing to fund their planned £4.7bn capital investments in overall capital funding has increased, three councils were projected to receive less, in real terms, than last two of those local authorities, East Lothian and Stirling, reductions in capital funding were forecast to offset increases in revenue funding, resulting in a real-terms reduction in their overall budget. Scottish Conservative finance spokesman Craig Hoy said: "The black hole the SNP have overseen in local authority budgets means hard-pressed taxpayers are now paying more and more but getting less and less in return."Labour local government spokesman Mark Griffin urged ministers to deliver "consistently fair funding for local government" and to work with councils to "modernise services so they are fit for the future".Liberal Democrat finance spokesman Jamie Greene claimed there was a "titanic gulf between what the SNP have provided and what councils say they actually need to maintain basic local functions". A Scottish government spokesperson said ministers had provided a real-terms increase in funding for local government in 2025-26, "building on continued increases in recent years".They added: "The Scottish government will continue to work in partnership with local government to address the challenges facing council budgets and ensure we are operating sustainable people centred public services that communities expect and deserve."
CBS News
21-05-2025
- Business
- CBS News
Howard County's school district will face a budget shortfall despite last-ditch efforts
The Howard County Public School System is still facing a budget shortfall after the county's fiscal year 2026 budget was approved on Wednesday. The county council voted to approve more than $2.7 billion in operating and capital funds after tense debates, primarily about funding for public schools. The school district received more than what was originally proposed, however, it's still not enough to fill the school district's gap to balance its budget. Overall, the county's FY26 operating budget is $2.35 billion, while the capital budget is $365 million. The final totals Before approving the budget, some county councilmembers tried some last-ditch efforts to increase HCPSS's allocation in the county operating budget. Initially, Howard County Executive Calvin Ball allotted around $800 million to the school district. Ball then filed emergency legislation to increase the share by $14.5 million from surplus funds. It came after hours of public testimony asking for the county to increase school district funding, and after HCPSS said it needed a minimum of $29.2 million more to pay for existing services and employee compensation, and benefits. Overall, HCPSS is slated to get $816 million in the budget, which means the school district is anticipated to make at least $13 million in cuts for the next school year. Howard County Councilwoman Deb Jung tried to increase HCPSS's share by more than a million, but the amendment failed to pass. Council chair Liz Walsh also said she tried to find $8 million to give to public schools. "I worked very hard to make sure that every cut I did make to our county budget was surgical; it would not hurt any of the departments," Jung said. Council vice chair Opel Jones and councilwoman Christiana Rigby consistently voted down attempts to increase public school funding. Jones noted that if the school district got more money, there would have to be cuts made elsewhere. "Any red cent that we come up with, we're pulling from somewhere else," Jones said. Rigby said she recognizes the need to increase public schools' funding, but adds there have been other factors, like federal funding uncertainty and the state deficit, to consider this cycle. "It's been very challenging because the local conversation is not taking into account what is happening outside of it," Rigby said. Overall, even though the approved HCPSS funding is higher than what the county's legally obligated to give, Walsh still isn't pleased. "I feel like this budget, as proposed and passed today by the majority of my colleagues, is a grave disservice to the Howard County Public School System," Walsh said in her closing remarks.
