WAUSAU, Wis (WSAU) The City of Wausau is facing a $1.1-million budget deficit next year.

The report in the Wausau Daily Herald says most of the shortfall is because of cuts in state aid. The city says its savings will not be as great as anticipated under changes to the collective bargaining law. Some city unions negotiated new contracts before the law took effect. Overall personnel costs, including health care, will rise by about $600,000 next year.

New union contracts require workers to pay 5.8-percent of their pension costs, and 12.6-percent of their health insurance.

Property tax increases are capped under the new state budget. The most the city could increase taxes by is 1.5-percent. That would cover less than a-third of the deficit. The rest would have to be made up by spending cuts and cost-savings.