Newsom: More budget talk Tuesday 

Mayor Gavin Newsom said city departments will be required Tuesday to present their latest proposals to reduce The City’s massive budget deficit projected for next fiscal year, which now hovers at around $497 million when $45 million in midyear cuts are included.

Last month, the mayor said there would have to be multiple budget adjustments in the coming months in order to cut into the deficit.

Newsom is also awaiting word on how The City will be affected by the state’s proposed 2010 budget, which will be unveiled Friday. Gov. Arnold Schwarzenegger warned the outlook is grim.

To reduce The City’s deficit, the mayor wants city department to focus on reducing the cost of contracts with various service providers.

Also, negotiations with labor unions will continue in the hope that they offer concessions to help The City, Newsom said.

“If labor is unable to step up…you should certainly expect more layoffs,” he said. “If they can step up, there will be substantially less layoffs.”

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