The $300,000 shortfall in revenues for Charleston this year could mark the beginning of an unstable and unknown financial state for the future.

Charleston Comptroller Heather Kuykendall said the shortfall was created because Illinois revenues in income, motor fuel and utility taxes are not coming in as projected. She said declining revenues in the state could make it more difficult to balance the city budget for the coming budget year, which begins May 1.

“I’m not thinking the worst is over for us because I think this will go into next budget year also,” Kuykendall said. “Next budget year is going to be just as bad for us.”

She said the delay in major infrastructure projects would be able to carry Charleston through the recession as it begins to affect city operations. Departments like police and fire will see minimal reductions in spending because many of the expenditures are fixed, Kuykendall said.

She said the city’s history of making a balanced budget may be jeopardized in the coming budget year because the city does not incur large profits, adding the city does not spend its money unwisely, either.

Kuykendall said the city has had a conservative fiscal policy for years, which should help the city in creating a balanced budget.

The city also has reserve funds, which would help with the shortfall this year and budget process next year, she said.

“We don’t have that risk, which works in our favor during times like this,” Kuykendall said.

The city reduced spending in departments at the beginning of the current budget year in anticipation for declining revenues.

Kuykendall said the current shortfall exists only because of state revenues. She said revenue on the local level is coming in as expected.

Maintenance projects and department spending that is not necessary or critical will be postponed, Kuykendall said.

City Manager Scott Smith said the city is anticipating more spending cuts and shortfalls in revenues for the next 18 to 24 months. He said the financial situation is not likely to improve immediately.

Smith said the city would operate in a “maintenance mode,” in which minor maintenance projects are only conducted, such as sidewalk repair, for the rest of the year in hopes to close the shortfall.

He said the city would discuss how to implement certain infrastructure projects for future years at the annual retreat in December.

“In our situation, we’re having to cut projects or delay them another year or two,” Smith said. “We simply have no choice.”

He said he could not comment any further about the future financial state of Charleston until he had the opportunity to consult with staff and the City Council.

“Those discussions will take place later this year during the retreat and budget process,” Smith said. “Right now, I’m trying to stay focused on getting the city through the current fiscal year.”

Stephen Di Benedetto can be reached at 581-7942 or at sdibenedetto@eiu.edu.