Tuesday Must Read: Oakland’s Deficit Balloons to $58 Million; Brown Signs Sweetheart Deal with Prison Guards

Stories you shouldn’t miss:

1. Oakland’s budget deficit has mushroomed to $58 million — $12 million higher than Mayor Jean Quan’s administration had estimated, the Chron and Trib report. The city continues to suffer from declining revenues, and the larger-than-expected budget hole means that nearly every city department likely will experience deep cuts next year. Quan’s administration is also in negotiations with city employee unions in an effort to obtain concessions in order to avoid massive layoffs. However, at a budget hearing yesterday, Quan said she would not lay off police officers. The huge deficit also increases pressure on the council to approve Quan’s plan to put a parcel tax measure on the ballot.

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