The past week saw several major developments in Sacramento’s budget crisis, from the city’s forecasts of major deficits in 2010 to a campaign by residents against proposed budget cuts to local parks.

Here’s a roundup of the past week’s budget news:

Huge deficit predicted for 2010
The Sacramento City Council is studying a slew of proposed cuts to resolve its $50 million deficit. But once the city deals with the current $50 million deficit, it will face a projected $30 million deficit for the 2010/2011 fiscal year, according to Leyne Milstein, the city’s finance director.

“Gap will grow to $30 million as revenues continue to decline and expenses increase in FY 2010/2011,” Milstein wrote in her recent report to the city council.

Read Milstein’s budget forecast here. Her presentation begins on page 59 of the document.

State may take local funds
On May 19,Californians voted down propositions that aimed to lessen the state’s budget crisis. Gov. Arnold Schwarzenegger’s office said that the failure of the propositions – five of the six died at the polls – means that the state’s budget gap of $15 billion has risen to $21 billion.

Schwarzenegger recently proposed to borrow $2 billion in local funds from local governments if the propositions fail. Local governments, including Sacramento, are afraid the state will take their funds. Schwarzenegger's office told The Sacramento Press May 20 that Schwarzenegger’s proposal to borrow from local governments is still on the table.

The Sacramento City Council declared the city was in a “fiscal crisis” with the aim of telling the state to stay away from Sacramento’s revenues.

Residents create group to oppose planned cuts to parks
A group of residents is challenging the city’s planned cuts to the Department of Parks and Recreation. The group, which is called Rescue Sacramento Parks, is pitching alternative actions the city could take instead of slashing parks services.

Kathleen Haley is a staff reporter for The Sacramento Press. Send your tips about local politics to kathleen@sacramentopress.com.