With many economic indicators pointing to a downturn in the coming year, Peoria city officials are planning a conservative approach to the forthcoming budget process.
Peter Christensen, deputy finance director for budget and revenue, said with the possibility of a recession in 2023, the city could see revenues go negative, so the financial team is planning to budget for flat sales tax revenue in fiscal year 2024.
“There are good reasons to exercise restraint as we go into the fiscal year 2024 budget process,” he said. “Risk of a recession is high right now. We don’t know how deep that recession might be or how it might impact the city. We do know that if there is a downturn, our sales tax and income tax revenues will be affected and respond negatively very quickly.”
