Budget Deficit, Budget | featured news

Stagnant revenue and rising employee costs threaten City Hall with a $222-million shortfall, official says. A proposal to outsource ambulance services provokes anger from firefighters union. Los Angeles' top budget official raised the specter of bankruptcy Friday in a sweeping report that calls for new taxes, possible layoffs and the privatization of some city services.

Officials in Costa Mesa say they are just trying to solve a budget problem, but some see a political motive.

President Obama wants more control over the country's budget, and plans to ask Congress for it this week.

State officials are trying to maneuver between saving money through early-release programs and maintaining the public’s sense of safety.

Administration estimates record-setting amount will drop to $1.3 trillion in 2011; Obama's proposed $3.8 trillion budget focuses on economy.

Sen. John McCain will support President Obama's plan to freeze much of the federal budget for the next three years, but said the president must also promise to veto any bills that are stuffed with pork barrel spending items.

The White House has told domestic agencies to assume their budgets will be frozen or even cut by 5 percent as it signals a big push to take on the deficit next year.

Faced with a total budget gap of $215 billion for fiscal years 2009 and 2010, most U.S. states looked to their prison and university budgets for relief, according to a report released on Thursday.

California Governor Arnold Schwarzenegger and lawmakers failed on Wednesday night to agree to balance the state's budget by closing a $26.3 billion deficit, but officials said talks would continue.

California's lawmakers failed to agree on a balanced budget by the start of its new fiscal year on Wednesday morning, clearing the way to suspend payments owed to the state's vendors and local agencies, who instead will get "IOU" notes promising payment.