Anchorage Faces $30 Million Budget Gap

Anchorage Mayor Dan Sullivan says the city is facing a $30 million budget gap.

Speaking to the Anchorage Chamber of Commerce Monday Sullivan says that is the amount needed if the city expects to have the same size of government next year.

The mayor says more than half of the $30 million is due to increased labor costs. The mayor says the city also expects to pay $4.5 million more this year into the police and fire pension fund.

Sullivan says there will be major expense cuts. He says it is hard to say at this point what could occur as far as city layoffs.

The administration is expected to present its 2013 financial plan to city assembly members by Oct. 1. The city operating budget for 2012 is $454.6 million.

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Lori Townsend is the News Director for Alaska Public Media. She has worked in print and broadcast journalism for nearly 30 years. Radio brought her to Alaska, where she worked as a broadcast trainer for Native fellowship students at Koahnic Broadcasting before accepting a reporting/host position with APRN in 2003. APRN merged with Alaska Public Media a year later. Through her freelance work, she has produced news and feature stories nationally and internationally for Independent Native News, National Native News, NPR , Pacifica, Monitor Radio, Radio Netherlands and AIROS. Townsend is the recipient of numerous awards for her work from the Alaska Press Club, the Native American Journalists Association and a gold and a silver reel award from the National Federation of Community Broadcasters.