It's still early in the fiscal year, but the city finance overseers expect a $2.44 million revenue shortfall for 2010-11.

That should be offset enough to balance the city’s books by budgeted salaries that won't be paid because the positions are vacant, Budget Director Bertha Johnson said Thursday.

As Durham's City Council and county commissioners worked through next year's budgets this week, some differences of opinion have emerged.

For example, over the Neighborhood College program -- a formerly twice-yearly course for Bull Citizens on how local government works. Some council members were not amused that the county has withdrawn its funding for next spring's term.

Mayor Pro Tem Cora Cole-McFadden wondered whether to bring the matter up at the next joint meeting of commissioners and council members.

"The county's just not committed to it," Councilman Mike Woodard said. "It's not fair for us to staff it without county help."

City Manager Tom Bonfield's recommended budget provides $3,000 for a class this fall.

"We need to show [the county] the value of investing in our citizens," Woodard said.

To which Council Member Diane Catotti responded, "Sounds like they're blowing them off on a regular basis, these days."

When Bull's Eye asked, Catotti declined to elaborate.

Durham City Manager Tom Bonfield opened today's staff retreat on the 2010-11 budget with a projected smiley face and the word "optimism."

And then he said, "But ... we've got to be realistic."

Revenue is trending down, costs are going up and making next year's ledger balance is going to be even tougher than it was last year.

"We probably haven't been here before," he said to an assembly of department managers and City Council members.

The economy's apparent rebound is slow in coming, and isn't likely to reach levels to which the nation got accustomed in the past decade, he said. Since cosumers aren't buying, sales-tax receipts are low and the tax base isn't expanding.

At the same time, "We're facing a $15 million budget gap," following the $40-million gap of last year. Two such years in a row are unprecedented, and after last year's budget cuts it's harder and harder to find items to trim. Moreover, it's going to cost more to cover debt that citizens approved back when times were flush.

Those factors suggest a tax increase, but, "What is the tolerance and willingness to pay more?" Bonfield said.

"I don't have the answers."