Grim city budget news

City government's budget shortfall may soar to $1 billion within two years, forcing it to cut services and trim jobs as the economic recession deepens, officials told the City Council on Wednesday.Daily News.

Interim City Administrative Officer Ray Ciranna predicted the budget deficit - $430 million this year - will worsen as revenue declines in virtually all areas, including taxes on sales, hotel rooms and parking.

The city also is likely to lose more than $70 million in state funding for law enforcement, education and transportation programs, officials said.