Westchester County has reduced its projected budget deficit by about $7 million, according to a new second-quarter budget report.

The report shows the county's deficit now stands at just over $9 million.

County officials say the improved outlook is being driven by higher-than-expected sales tax revenue and additional state funding.

Despite those gains, leaders say rising expenses continue to put pressure on the budget.

"Expenditure growth continues to outpace those gains primarily due to increases in health care costs, self-insurance costs, overtime and mandated human service programs," said Westchester Budget Director Larry Soule.

Officials also say revenue from Bee-Line bus fares and Rye Playland is coming in below expectations.

County leaders are also closely watching the possibility of future federal funding cuts, which could further impact the budget.