Tausaga also adds benefits associated with the funding from American Recovery and Reinvestment Act will also dry up.
He said the local portion of the new fiscal year budget will be down five percent from 2011, and executive cuts are being made to department and agency budgets to combat the anticipated decrease.
Tausaga said during financial adjustments, sacrifices are crucial.
All departments were given budget ceilings of five percent below their current year budgets.