ORANGE : City’s Projected Budget Gap Grows
City officials have revised their projected budget deficit from $10.7 million to $11.2 million for the 1993-94 fiscal year.
Scott Morgan, assistant to the city manager, said the anticipated increase is a result of a larger than expected contribution to the state-run Public Employee Retirement System.
“Our contribution increased by $500,000 to $6.5 million,” Morgan said. “But our basic retirement benefits remain the same.”
City contributions to the system fund the future retirements of municipal employees.
The City Council has already taken a number of steps toward closing the projected budget gap, including voting in April to lay off 50 employees to save $2.1 million and increasing the city’s transient occupancy tax to raise $400,000.
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