After making some drastic cuts earlier this year, including some 116 layoffs, the budget gap was still predicted to be in the millions. But after improved tax revenues and lower than expected expenses, that deficit has all but taken care of itself.
From the Orange County Register:
Stronger than expected sales tax revenue is closing the city’s budget deficit, officials say.
At a mid-year budget update Tuesday, the City Council was told the city’s projected deficit for the current year is now $1.4 million.
When the budget was adopted, the deficit was at $9.4 million, even after 113 positions were eliminated. But a projected $6.6 million increase in revenues and $1.4 million less in salary costs have nearly closed the gap, said Bobby Young, the city’s budget and research officer.
Read the full article here.