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City Budget Faces Up to $100-Million Shortfall

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From Times Staff and Wire Reports

The city budget may come up $100 million short by the end of the fiscal year, partly because of fallout from the Sept. 11 terrorist attacks, said City Controller Ed Harrington.

Revenue from every tax--except the motor vehicle license fee--that fuels the $5.2-billion budget is expected to decrease.

The loss of jobs means people will lose health insurance and rely more on public hospitals. The welfare caseload also will go up.

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Because nearly half the budget is considered discretionary, losing $60 million to $100 million would not cause services to collapse.

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