Tempe City Budget: How Tempe Handled a Larger Deficit 18 Years Ago vs. Today

The shortfall grew rapidly across three years:

Tempe's general fund deficit was projected at more than $34.5 million for fiscal years 2009 and 2010 alone, with the situation expected to worsen in subsequent years without intervention. statepress

 

What Tempe actually cut or proposed cutting:

Workforce — up to 180 positions In November 2008, City Manager Charlie Meyer announced the city faced an $11.5 million shortfall due mostly to declining sales-tax revenues and was considering eliminating up to 180 positions — about 10% of its 1,800 full-time employees. statepress

By early 2009 that was refined: the formal proposal called for eliminating 146 positions, 83 of which were currently filled. If all 146 were eliminated, it would save the city almost $12 million. Every attempt would be made to place affected employees elsewhere, with layoffs described as "a last resort." statepress

Hiring freeze and pay raises waived Tempe implemented a hiring freeze starting the summer of 2008. City employees also voluntarily waived their pay raises in January, with City Manager Meyer noting "it didn't make any sense to be taking raises in the context of eliminating positions." statepress

3% pay cut for all employees By February 2010, the council's $30 million+ budget proposal included a 3% pay decrease for all city employees, projected to save $3.3 million. Furloughs were also discussed, with the council stressing they would only be imposed if they actually saved money. The Arizona State Press

Capital projects frozen Park and pool renovations were halted due to the recession — Clark Park's pool closed in 2008 and planned renovations were suspended in 2010. City of Tempe

More than $30 million in department-wide cuts By February 2010, the city's target was more than $30 million in cuts across all departments — nearly triple the original shortfall estimate — while simultaneously putting a sales tax measure to voters expected to raise about $10 million annually. The Arizona State Press

 The bottom line: Tempe in 2008–2010 cut across the board — froze hiring, waived raises, proposed up to 180 job eliminations saving ~$12 million, imposed a 3% pay cut saving $3.3 million, froze capital projects, and targeted $30+ million in total department reductions before also going to voters for new revenue. That's a stark contrast to 2026, where the council skipped straight to a $50 million tax measure without publicly proposing any cuts first.