TAFT, Calif. - The City of Taft said they are projecting a $700,000 shortfall in their budget.
Which is huge for a city with a total budget of $5 million dollars.
City leaders in Taft said there are a number of reasons for the deficit they are facing.
Officials said the closure of their Community Correctional Facility has been the biggest hit to the city budget.
It is a double whammy of lost income from housing the inmates and increased costs for unemployment insurance.
The CCF has been closed for a year and a possible deal with LA County to house their inmates has been repeatedly delayed by LA County Supervisors.
The other problems are loans made to the redevelopment agency that won't be repaid since the agency no long exists.
And the sluggish economy has affected sales tax revenues.
Earlier this week the city notified its employee's unions that layoffs could be a possibility. Cutting Officers from the force is an option.
City leaders said all options are on the table to fix the budget.
And they want taft residents to know they are going to do everything they can to avoid layoffs.