A report on Morgan Hill’s budget this week painted a dim picture of the city’s financial future, which is facing millions of dollars of deficit spending in coming years.

The shortfall leaves the City Council caught between cutting services to the public or raising taxes on its residents, setting up a potential uphill battle for a tax ballot measure in the city.

“If we continue in the route that we’re coming … then we’re looking at probably layoffs in the future,” said Councilmember Soraida Iwanaga. “Council is going to have to start swallowing those painful pills of talking about taxes.”

In a yearly budget report at Wednesday’s City Council meeting, city staff forecasted an ongoing shortfall of $4 million a year to keep current city services – though even at the current level, the city

See Full Page