Ironton’s 2012 budget is likely to be leaner and meaner than in previous years and is likely to get little help from the 2011 budget; city officials say every expenditure will be scrutinized as they try to figure out how to make ends meet.

Finance director Kristen Martin said the carryover from 2011 to 2012 will likely be approximately $50,000.

“That’s not a lot of money to begin the New Year,” Martin said. “But we’re not over spending. We’re overwhelmed with obligations.”

Mayor Rich Blankenship said he is eager to get started on the new $4.5-$5 million budget and said he hopes every member of council will play a role in crafting the new spending plan.

“I want to sit down early in January and look at the budget and every single department,” Blankenship said, “We’re going to go through it with a fine-toothed comb. We’re going to work hard on this budget.”

One of the major hurdles to the budget will get attention Jan. 4 when city officials open bids for health insurance for the coming year. Salary and benefits for city workers is a large chunk of the city budget. The city pays 95 percent of the health care premium for municipal employees.

Another major hurdle in 2012: union negotiations. The city must renegotiate contracts with all three unions, Fraternal Order of Police, International Association of Firefighters and American Federation Of State County And Municipal Employees, which represents public works employees.

This comes at a time when the state and federal governments are cutting their allotments to cities and counties. Blankenship said state officials have not said yet what the city can expect in 2012 from the Local Government Fund. He also said he is not happy about state plans to phase out the local share of inheritance taxes by this summer.

“I totally disagree with that,” Blankenship said. “That money should stay here.”

While the state is cutting its allotment to cities and counties, the state’s Environmental Protection Agency is not trimming any unfunded mandates— requirements to local governments, such as the combined sewer overflow separation.

While revenues may be dwindling, city expenditures are not.

“The city pays $100,000 a year for street lights,” Blankenship said. “Not to mention electricity for buildings. (We’re seeing increases in) everything from chemicals for water treatment to health care. And it all has an effect on the budget.”

Martin pointed out that fewer people working and fewer people spending money in Ironton means less revenue for government operations, even essential ones.

“We’re going to have to work together,” Martin said.

The new city budget must be approved by March 1.