A number of city employees received pink slips Monday that said their last day of work would be June 19. Though 168 workers received the layoff letters, city officials said the number of potential layoffs would go down if unions make concessions.

The city is planning layoffs and cuts to services to address a budget deficit of more than $43 million.

Sacramento began its budget planning for the 2009/2010 fiscal year with a $50 million deficit. The deficit figure dropped to $43.6 million in March after the Sacramento Police Officers Association made concessions on pay increases, said Gus Vina, an assistant city manager.

The firefighters’ union, Sacramento Area Firefighters Local 522, made a tentative deal with the city on Friday. Union members will vote this week to decide whether to approve the deal, which would cut their scheduled pay increases. The city plans to slash 50 positions in the fire department if the union does not accept the agreement.

Another major union, Stationary Engineers Local 39, is in negotiations with the city.

“We have not cracked that wide open,” Mayor Kevin Johnson said Tuesday, referring to the status of the city’s negotiations with Local 39. He said that if the firefighters’ agreement is approved, the city would be in “much stronger position” with Local 39.

Kathleen Haley is a staff reporter for The Sacramento Press.