Following the advice of Mayor Joe Carollo, a state oversight board rejected the city's budget because it did not maintain adequate reserves and provide new revenues.

The budget rejected Wednesday was submitted by the City Commission under former Mayor Xavier Suarez's watch, and it did not include an unpopular fire-rescue fee that would have raised $24 million in new revenues for the financially ailing city of 375,000.City administrators had to scramble to revise the budget, in disarray after the fire fee was thrown out.