In the face of a $2.5 million budget shortfall, the Common Council passed a $58,431,727 budget for 2010 yesterday.

Delayed construction at Cornell, in part, contributed to the budget shortfall, according to The Ithaca Journal. Facing its own budgetary problems, the University implemented a construction pause last year which temporarily halted the approval of new projects. Cornell has since proceeded with the approval of building projects, such as Milstein Hall, although at a much slower rate. Slowed University projects led to a loss of building permit revenue for the City of Ithaca that could have alleviated some of the city's budget concerns, the Journal reported.

Other contributing factors to the budget shortfall included decreases in sales tax revenue, additional lost permit revenue from other delayed construction projects, increased debt service jobs and $1 million in state pension increases, according to The Journal.

Despite the looming shortfall, the budget did not include any job cuts. Additionally, a 3.5 to 4 percent raise was included for city staff. The increase in salary was based on past union contracts.

The mayor’s original budget proposed a 4.22-percent property tax increase for the city. Last night, Common Council’s budget called for a 4.25-percent tax hike, according to the Journal. The mayor’s budget also suggested the termination of one-hour free parking near the Commons. This move sparked a backlash from local businesses who petitioned against the idea, concerned it would hurt the downtown economy.

Since the closure of one-hour free parking was not mandated in the budget –– it was included as a new possible revenue stream –– the final decision has yet to be determined on the matter. The Board of Public Works will ultimately be forced to resolve the issue.

Mary Tomlan (D-3rd Ward) expressed some concern that the budget may prove too liberal in the face of some declining sources of revenue, but said overall the budget was good.

“I thought that the mayor had done a very thoughtful and prudent structuring of the budget, given the figures she had to work with,” she said.