But the issue remains of how much structural balance they achieved.

"He's controlling expenditures but losing ground in the fight for structural balance."

But his achievement would have been more impressive if the budget had brought genuine structural balance to the state's finances.

Dealing with the new gaps might require a reduction of 35,000 to 40,000 to bring the budget into structural balance.

"The city must resist this temptation if it is to achieve structural balance."

"What they have backed off from is making the balancing of each year's budget contribute to long-term structural balance."

He said the budget did not address the critical issue of long-term structural balance.

Another is the city budget, which is nowhere near structural balance.

"The city has started to do the very things they have to do to achieve structural balance," he said.

Hospital revenues increased in 2003 and 2004, the audit said, but "not enough to bring the budget into structural balance."