The city is on track to end the fiscal year $31 million in the hole, Budget Director Steve Agostini told City Council members during a briefing today.
Agostini attributed the downturn to a number of factors, including a decline in the city's expected wage tax revenues and a loss of state funding for social services and police. The overall deterioration was offset somewhat by better than expected revenues for the business privilege tax and the real estate transfer tax.
The budget office has already asked city departments to look for ways to cut 7.5 percent from their budgets for FY11. Agostini said some cuts may start during this fiscal year, but he did not detail what form they would take. He stressed that the city is closely reviewing every hire and expenditure to try and find savings.
Clay Armbrister, the mayor's chief of staff, stressed that the city still has financial pain ahead despite a turbulant year of budget cuts and tax hikes.
"We're not out of the woods by any means," Armbrister said.