Finance report projects $12.3 million deficit
Omaha, NE – Omaha's 2010 first quarter financial report projects a budget deficit of $12.3 million.
City Finance Director Pam Spaccarotella released the report Tuesday. She says a continued decline in sales tax receipts and revenue is hurting Omaha's budget. Spaccarotella says that's responsible for about three-fourths of the projected deficit.
Spaccarotella says overtime costs in the Police Department and retirees' health care costs are also creating cost overruns. Contract negotiations between the city and Police Department recently ended. City officials have also introduced a proposal requiring retirees to pay the costs of their health insurance.
Omaha's 2011 budget shortfall is projected to be $21 million.