Vicksburg officials are looking at further cuts and possible layoffs as they begin making the final changes to a fiscal 2012 budget that is about $2 million less than the city’s present general fund budget.

According to a copy of the proposed budget released Friday, city officials project revenues of $28.8 million for fiscal 2012, about $2.5 million less than the $31.3 million 2011 budget. A public hearing is set on the budget at 7 p.m. on Aug. 25.

“We may have to look seriously at layoffs if things don’t get a lot rosier,” Mayor Paul Winfield said. “If we have to do them, we’ll do them early in the year.”

Winfield said he does not see the board raising the city’s 35.88-mill property tax.

City officials point to a drop in gaming and sales tax revenues as one reason for lower budget.

“Gaming revenues are not as good as they have been, and sales tax revenues are below our estimates,” Winfield said.

Part of the reason for the drop, they said, is the 2011 Mississippi River flood, when the river crested at 57.1 feet on May 19, 14.1 feet above flood stage and nearly a foot above the Great Flood of 1927.

The flooding in Vicksburg received national attention, which city and local tourism officials said forced people to cancel plans to come to Vicksburg.

High water affected business at the city’s five casinos, forcing DiamondJacks to close for 36 days and Rainbow for 14.

Gaming revenues were below projections. The June revenue, which was received Friday, totaled $765,147, pushing the city’s gaming receipts to $5.4 million for the fiscal year, but still short of the projected $6.6 million.

Sales tax revenues also were down, with the May sales tax figures totaling $561,002.70, 7.4 percent less than the $606,063 that the city received in April, and 10.6 percent less than the $627,321 paid in May 2010.

Most of the city’s revenue will go to public safety, with the police department getting a projected $6.5 million, while the fire department is expected to receive $5.4 million and ambulance service is expected to receive $2.3 million.

But those numbers may be reduced before the Aug. 25 public hearing.

“We’re going to have some more discussions about the budget,” Winfield said.

“There are things that still have to be worked out,” South Ward Alderman Sid Beauman said. “Everything we’re dealing with is based on estimates and we have to try and make sure we have enough cash to operate on between October and February, when the property taxes start coming in.”

“This is when it gets real severe,” North Ward Alderman Mike Mayfield said about future budget talks. “We’re going to start to bump heads. You’ve got three guys sitting up there, and each one wants something. But the bottom line is that we’re going to have to do what the money tells us, and when you maximize a dollar, you make it go further.”