"The chairman of a new commission farmed to address the District?Ûªs financial crisis warned ?Ûª yesterday of a ?ÛÏsignificant deterioration'1 of city services unless drastic steps are taken to bring the city?Ûªs budget deficit under control.</br></br>Describing the city?Ûªs financial situation as ""precarious,"" American University President Richard Berendzen said the city will face a budget deficit in excess of $100-million next year if current trends persist.</br></br>Without action to curb spending or raise revenue, he said, the city faces the prospect of reductions in services as basic as trash collection and health care. ?ÛÏThe city needs help,?Û? Berendzen said. ?ÛÏFor the past several years, the city has been on thin ice in its budget.?Û?</br></br>Berendzen spoke at a news conference at which Mayor Marion Barry announced the formation of a Commission on Budget and Financial Priorities to advise the city government on developing a five-year plan, between 1991 and 1995, to balance the city?Ûªs budget, which now totals more than $3 billion.</br></br>ing costs of human service and law enforcement programs. Last year, the city incurred a $14 million deficit."