The financial deficit created by unpaid business licenses in Long Beach, California has left the city facing budgetary problems.
Officials are expecting business license tax revenues to be down nearly by $300,000 at the year’s close, according to the Long Beach Business Journal.
Disparity between projected business license income and that collected is, however, just one element contributing to the $11 million budget deficit in the city for the fiscal year 2012.
Utility users tax revenue is expected to be $2.4 million below budget, while income from parking citations will be approximately $900, 000 down.
As a result, officials have had to use last year’s $5 million in savings and ask all departments to take a budgetary cut.
A one per cent savings target will also be applied, in an attempt to create $3.7 million in extra revenue.
The budget deficit could potentially cause problems for city services, as investment opportunities will be limited.