Summary
The Second Quarter FY14 QCMR, covering the period ending December 31, 2013, reflects continued revenue growth, with General Fund revenues now projected at $3.82 billion, $92.9 million above the Five-Year Plan estimate. However, obligations have also increased significantly, with projected spending rising to $3.99 billion, $102.9 million above the original plan, primarily due to increased labor costs and pension obligations. The operating deficit is projected at $174.8 million, worse than earlier forecasts, but prior-year fund balances help mitigate the impact. The year-end fund balance is expected to be $101.5 million, up slightly from previous projections. The report highlights potential budget risks related to labor negotiations and continued growth in pension costs. It emphasizes the need for expenditure discipline to ensure fiscal stability.