New Orleans budget deficit projection trimmed to $12 million
by Michelle Krupa - Times-Picayune (excerpt)

Mayor Ray Nagin this week dropped the bomb that New Orleans' will face a budget shortfall next year of $68 million -- almost 60 percent more than previously predicted -- owing to lower-than-expected tax collections, a court-ordered pay increase for firefighters and other factors. Nagin did not mention some better news: That through recent, behind-the-scenes collaboration with City Council members, his administration has apparently confected a plan to trim the shortfall to around $12 million. The reduction would come through a combination of more aggressive sales-tax collections and broad spending cuts -- and without hiking taxes, according to four City Council members. Nagin's spokesman on Friday confirmed the meetings and the new deficit projection. "The $68 million shortfall could be dramatically reduced if these changes are implemented, but a gap of at least $12 million remains," spokesman James Ross said. "Of course, no final decisions have been made."