Newark Mayor Cory Booker Wednesday moved away from his proposal to create a new water utility authority to help close a $70 million current-year budget gap and instead announced that cuts would come from placing the city on a four-day work week and additional operating cuts.

The City Council has deferred a vote on the creation of the proposed Municipal Utilities Authority at this time. That decision places the budget for fiscal 2010, which began Jan. 1, in limbo, as that spending plan included a payment from the MUA. Booker called the situation a “fiscal crisis” and is now looking towards furloughs and deeper spending reductions as an alternative.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.