Ease in Huntington financial crisis

HUNTINGTON, Ind. (WANE) - Tuesday night, the city of Huntington took a big step toward repairing its financial wound.

"It's a temporary turning point," said Mayor Steve Updike, Huntington.

Huntington is set to face a $676,000 shortfall in its 2010 budget, but over the past weeks city departments made cuts, and tonight council approved a transfer of funds. That zeros out the deficit, at least for now.

"It's like going to the doctor and thinking you had something bad and he says well we can cure part of this," said Mayor Updike.

Huntington will hear back from the state about its property tax assessments in the Spring. The city is expecting that to put it in a $1.2 million hole.

"City Council has to be aware of it because they're the ones that set the budget, they're the ones that know the shortfalls, and what kind of money we have now," said Mayor Updike.

If that $1.2 million shortfall turns out to be true, more layoffs could be in store. That's on top of the six Huntington firefighters who will be jobless this holiday season. In the meantime, this short term stop gap will spare a few others.

"I think a lot of people will be relieved for the time being that know we are going to keep people working," said Mayor Updike.

Mayor Updike said the city is facing a $1 million dollar shortfall in 2011, and they're not prepared for that.