San Francisco budget gap to be smaller than expected

SAN FRANCISCO (Map, News) - San Francisco officials say the city's projected budget deficit for the coming year won't be as big as expected.

A new report by the San Francisco controller's office says the projected budget gap for the fiscal year beginning July 1 is now about $305 million -- $33 million less than earlier forecasts.

Mayor Gavin Newsom's order to city departments to reduce spending is being credited for the decrease.

City finance officials warn that the amount of the deficit will likely change again as departments enact salary reductions and as the city absorbs cuts in state funding.

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Information from: San Francisco Chronicle, http://www.sfgate.com/chronicle

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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