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Ithaca scrambles to fix $2.1M budget gap

City officials in Ithaca are racing to close a $2.1 million budget shortfall caused by a software glitch, according to The Ithaca Voice.


A proposed stopgap plan from City Manager Deb Mohlenhoff would save $2.4 million through cost cuts and higher parking fees—avoiding layoffs but wiping out financial wiggle room. The Common Council votes Nov. 5 on final amendments, including funding for public transit and a proposed unarmed responder team.

The city could now slightly raise property taxes after recalculating its state cap, but leaders remain cautious. Ithaca’s finances have been shaky for years, with no permanent controller and delayed audits adding to the challenge.