San Francisco’s soaring tax revenues could shrink next fiscal year’s projected budget deficit by about
$30 million, city officials say.
The largest factors behind the revenue jump are an increase in property and hotel taxes, which has decreased the deficit projection for the fiscal year beginning July 1 from $100.7 million to $69.4 million.
“We continue to see tax revenue outperforming our projections, really driven heavily by property tax and hotel tax,” City Controller Benjamin Rosenfield said. [jump]
Instead of the initial $1.15 billion in property tax, the controller’s six-month budget report has $1.17 billion, an increase of $21.6 million, while hotel tax jumped from $273.9 million to $295.9 million. Hotel-tax revenue grew from an increase in bookings and room rates.
In addition, there have been less-than-expected costs in the Department of Public Health and Human Services Agency budgets.
“The pace of economic growth in the city continues to outstrip our expectations and so how long that will last and at what pace is a key question as we plan our budgets,” Rosenfield said.
Mayor Ed Lee celebrated the economic growth in a statement Tuesday, saying, “our economic policies are working and our residents are getting back to work.”
Lee must submit a proposed budget to the Board of Supervisors for review and adoption by June 1. The budget for the current fiscal year was approved at $7.9 billion.
Bay Area NewsBudget deficitCity Controller Benjamin Rosenfeldtax revenuesUnder the Dome