Sacramento will have to increase its annual contribution to the California Public Employees Retirement System by $5 million this year because of investment losses by Calpers in 2008, according to local media.

The annual contribution will increase by an additional $16 million in four years, up from the $53 million contribution this year, according to the Sacramento Bee.

The city is facing a general fund deficit of around $40 million for the upcoming fiscal year, the newspaper reported.

The newspaper said Sacramento has closed $180 million in budget deficits over the last four years as tax revenues have declined during the slow economy.

The city's rainy-day fund also has shrunk to $10.5 million from $30 million, according to the Bee. Labor accounts for 79% of Sacramento's expenditures.

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