Albuquerque is facing a potential budget shortfall of $24 million in the upcoming fiscal year that begins July 1.
The Albuquerque Journal reports that the financial forecast was outlined in documents submitted to the City Council on Wednesday, and predicts the largest budget gap the city has faced in six years.
The city anticipates $526 million in revenue in the new fiscal year, and increase of about 2.8 percent, but expects to spend about 2.9 percent more than in fiscal year 2016.
The increased expenses come from state tax cuts, legal settlements and the operation of new projects, including otter and penguin exhibits at the BioPark.
Mayor Richard Berry says the projected shortfall is a manageable amount that can be addressed without tax increases, layoffs or employee furloughs.
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Information from: Albuquerque Journal.
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