Savannah Budget Shortfall May Mean Tax Hike

If you live in Savannah, you may be paying higher taxes, unless the city can find a way to make up $10 million in its five-year budget. Yesterday morning, city employees went over Savannah's financial plan with the city council. Savannah's expenses are running about $2 million more a year than the city's projected income.

The city says most of that comes from higher jail costs from Chatham County. Cutting the $2 million bond issue to pave streets will save some money, but the city will have to find other ways to cut expenses to avoid raising taxes.

"We're not sure exactly yet how we're going to balance it out," said Chris Morrill, assistant city manager. "So we're going back and reviewing everything. Property taxes are the last alternative."

Savannah also hopes to pass a local option sales tax next spring.

Reported by: Liz Flynn