San Francisco’s budget is doing better than expected, it turns out. When the current budget cycle ends, the City will have more than a $129 million surplus – some $80 million better than expected. Despite the good news, the deficits haven’t ended yet.
Next year, the city is anticipating grappling with a $229 million hole, but that’s an improvement over the earliest guesses that assumed $458 million. The following year the city will try to plug a $364 million gap, but again, that’s an improvement over a previous estimate of $619 million. The shrinking deficits means the budget should be able to be balanced easier, without as heavy of a reliance on reducing services.
The improving numbers can be attributed to a slight rebound in the economy. Sales, property, hotel, and parking taxes all increased for the city for the first time since 2008.
From the San Francisco Chronicle:
The current budget cycle will end with a $129.1 million surplus, $80 million more than previously anticipated, according to a new budget report released Monday by the Office of the Controller.
“We’re still not out of the woods, but it’s very good news,” said Kate Howard, the mayor’s budget director.
Read the full article here.