VIDEO: Birmingham finds $20 million budget shortfall

BIRMINGHAM, Ala.—- Acting Mayor Carole Smitherman told Birmingham City Council Tuesday that the current budget under funded essential services by $20 million.

Monday former finance chief Steve Sayler resigned after turning in a report to Smitherman about the city’s financial status.

Smitherman said Sayler told her former Mayor Larry Langford told him to use 2008 budget amounts for 2010.

It is unclear whether Langford himself knew about the $20 million shortage.

Smitherman took over as acting Mayor Last Wednesday following Langford’s federal fraud conviction.

Mayor Chief of Staff Deborah Vance-Bowie said today that Sayler did not tell her about the shortfall until the Thursday before Langford’s trial.

She claimed when she told Langford about the deficit, he did not seemed shocked.

Tuesday, city councilors argued that Sayler could not have budgeted such a large shortfall without direction from above.

Some are considering postponing some city projects to find money to fix the hole in the budget.

Among the areas totally unfunded were $2.1 million in matches for grant money and $5.2 million for Information Management Services.

Budget areas with insufficient funds include $1 million in medical expenses and $4.7 million for public works.