Phoenix’s budget shortfall could be $20 million worse than the $250 million anticipated in September, officials said.

At $250 million, the gap would have represented about 20% of the city’s $1.2 billion general fund. But the situation has continued to worsen, according to deputy city manager Ed Zuercher.

Sales-tax revenue from January through October came to $330 million, about $20 million less than the same period in 2007. The City Council will review a proposed budget in more detail Wednesday.

A week after that, community hearings will give the public a chance to comment on the proposed budget.

Parks and recreation are expected to see the deepest cuts, though all departments are expected to suffer. City manager Frank Fairbanks has told employees that they could expect unpaid furlough days through 2009. Over the past six years, the city has cut a total of $125 million.

The metro Phoenix area has seen some of the biggest losses in housing values in the nation. Currently, the city is trying to balance growth and plummeting sales tax revenue.

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