N.O. budget shortfall worse than expected
Targeted employee furloughs is one of the options New Orleans Mayor Ray Nagin is considering to deal with the city's $68 million budget shortfall, about $25 million more than previously estimated. The mayor says he hopes to avoid layoffs in preparing the 2010 budget, which will be presented to the city council, October 30. Nagin says a 10 percent reduction in spending in all departments, agencies and contractors and a 10 percent reduction in his office and staff is also possible.