Article: New Orleans Mayor Ray Nagin: New budget projections show $68M deficit

In August, the chief economist for the city of New Orleans projected the city would face a $43 million budget deficit in 2010. Now Mayor Ray Nagin is saying the gap will be closer to $68 million due to lower than expected tax collections and unforeseen expenses.

In order to balance the budget, Nagin said an extension of the city's hiring freeze is being considered along with city worker furloughs.

The mayor issued a statement this afternoon detailing areas where unplanned spending led to the higher budget shortfall projections. The list include pension increases, additional workers' compensation costs, court ordered salary increases for firefighters and the accelerated use of the city's ...

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