Rockford aldermen told to brace for $4M shortfall

ROCKFORD — The budget is looking tight in the city of Rockford.

City Finance Director Andres Sammul told aldermen to brace for a shortfall of "$4 million at minimum" in the city's 2012 general fund.

The Rockford Register Star reports that city leaders say Rockford is in a worse position than it was last year.

Sammul says the city is facing $1.8 million in temporary cuts in this year's budget that will need to be made permanent in 2012, plus a projected $1 million revenue shortfall.

The budget situation got worse last week when officials learned an arbitrator ruled for the city's fire union in a contract dispute. The arbitrator awarded a 6 percent wage increase, which is expected to cost the city $600,000 for 2011 and $1.2 million for 2012.