Newsom calls for cuts, hiring freeze
in face of looming budget deficit
Mayor Gavin Newsom
Photo by Luke
Bay City News
November 29, 2007
Faced with a looming budget deficit, San Francisco Mayor Gavin
Newsom yesterday called for an immediate hiring freeze and 13
percent across-the-board cuts to city departments.
The mayor's office has projected a $229 million shortfall for
fiscal year 2008-2009, with continuing deficits for the following
Newsom says the anticipated deficit partially stems from $133
million spent for more police officers, nurses and park maintenance
workers and another $72 million in voter-approved spending for
Newsom said a "projected deficit simply means that the city
is going to have to tighten its belt in terms of spending."
He said the city's revenue "continues to be strong"
and the local economy is "in very good shape."
General city revenues for 2008-2009 should grow by 5 percent
from the previous year, "but any growth over the 5 percent
would require deposits to the Rainy Day Reserve and very little
would be available for general fund spending," Newsom said.
The mayor's office is also taking into account added deficit
that may occur next year when the governor's budget is announced.
The state is facing an estimated $10 billion shortfall next year,
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