Newsom: mid-year cuts expected

Mayor Gavin Newsom told the Board of Supervisors Monday that “we will continue to closely monitor the state’s plan for implementation of spending reductions and we plan to work closely with the Board of Supervisors to address our financial challenges during the coming year.

What this means is that Newsom is planning on making mid-year cuts later on this fiscal year “due to the economic climate.”

Indications of challenges facing the city’s budget include the Sheriff alerting Newsom and supervisors of the need for millions of more dollars to handle the uptick in jail population, a budget worry that the Examiner reported first.  Also, the city’s most recent projection showed a budget deficit of at least $300 million for the fiscal year beginning July 1, 2010.

Newsom’s comments came as part of his required Monday submittal to the Board of Supervisors of his plan to close a budget shortfall as a result of state budget cuts. The hit to the city’s budget came in much lower than expected.

The city had projected an $8.8 million hit from the state budget — after it used $18 million put on reserve to soften the blow. That hit decreased to just $2.25 million which Newsom has proposed to offset with “relatively modest short-term impacts to program funding and service delivery.”
 

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