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Santa Ana Faces Major Budget Shortfall, Officials SaySanta Ana officials face a troubled financial future, with top staff projecting a $14 million shortfall for city operating costs in the upcoming fiscal year and a $19.5 million deficit the following year.The city also has a projected $2.2 million shortfall for the current fiscal year, which ends June 30.The news, discussed at Tuesday’s City Council meeting, reverses years of positive budget outlooks, and could spell long-term trouble if not addressed, top officials said. a“We have a major structural deficit,” said Councilwoman Michele Martinez, who has emerged as the council’s deciding swing vote on major decisions. She blamed part of the shortfall on the city’s subsidizing of a 512-bed jail that essentially doesn’t house city arrestees.The city expects to spend a total of $238 million next fiscal year for operating expenses, known as the general fund budget.City staff attributed the projected shortfall to a mix of revenue reductions – mainly the $11 million a year loss from the cancelled jail contract with U.S. Immigration and Customs Enforcement (ICE)– as well as cost increases.