SAN FRANCISCO—Over the next five years, San Francisco Financial Plan expects that the City will experience continued economic growth which will in turn support continued but slower growth in tax revenues. In addition, the Five Year Financial Plan, recently revealed by the Controller, shows that the cost of city services is projected to outpace revenue growth during the five year period.
If the city does not take corrective action, the gap between revenues and expenditures will rise from $15.9 million to approximately $417.9 million from Fiscal Year 2015-16 to FY 2019-20, the plan says.
But despite the fact that the City projects deficits over the next five years if proactive steps aren't taken to address the imbalance between revenues and expenditures, the City is in a much better fiscal position than it was in four years ago, the report notes.
In 2011 when Mayor Lee took office, the City's deficit was projected at $382 million and the unemployment rate was 9.4%; today, projected deficits over the next two years are both below $100 million and unemployment has fallen to 4.4%.
One of the significant departmental issues identified in the Five Year Financial Plan included Planning and construction of large-scale development and capital projects, including implementation of the new Transportation and Road Improvement G.O. bond; maintaining and improving the condition of the City's streets and public right-of-way; improving services to businesses; and investing in vibrant, diverse neighborhoods.
In response to the plan, Mayor Edwin M. Lee said that the report “confirms that our economic policies are working. Thousands of our City's residents are back to work as our economy continues to grow. We're seeing strong job growth in just about every sector in the City's economy.”
However, he says, “even as San Francisco's economy recovers, we may still face budget deficits in future years ahead. We must redouble our efforts on government efficiencies, embrace innovative solutions to our challenges and invest responsibly in our residents.”
In the coming months, “we will present a balanced budget to the residents of San Francisco. Because of our improved economic recovery, sound policies and fiscal prudence, I have asked for no cuts from our City departments for the first time in years. But that doesn't mean we will be satisfied. We can do more for our residents so that they can share in our prosperity. We can provide more efficient, responsive City services that are affordable over the long term while continuing to support our economic recovery and preparing San Francisco for growth.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
