Sales tax failure darkens San Francisco budget outlook

Mike Koozmin/ S.F. Examiner

Mike Koozmin/ S.F. Examiner

Since voters rejected a half-cent sales tax on Tuesday, Mayor Ed Lee will not have $60 million in new revenue to help plug next fiscal year’s budget deficit.

Just how grim the city and county budget will look will come into sharper focus on Dec. 15, when the state will announce deeper budget cuts if its summer revenue projections are off. The most recent deficit projection shows a San Francisco shortfall of $350 million for the fiscal  year that begins July 1.

“The mayor remains concerned about what state and federal revenue cuts will mean for The City, especially in light of the Dec. 15th trigger cuts from the state,” Lee’s spokeswoman Christine Falvey said. “The [half-cent sales tax] revenue would have helped offset those impacts to public safety and social service programs.”

While voters rejected the sales measure, they did approve a $248 million bond for street repaving and a ballot measure to reduce The City’s contribution to pensions, two other measures backed by Lee.

“We are in the early stages of developing our budget for the next two years where we will face budget shortfalls again,” Falvey said. “Our job is now more difficult, but the collaborative budget process we just went through for this year helped us find cost savings and efficiencies, and we will have to do the same for the next few years.”

Bay Area NewselectionGovernment & PoliticsLocalPoliticsSan Francisco

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

The City has struggled to conduct outreach in some neighborhoods as it works to expand Slow Streets — such as this section of Page Street in the Lower Haight — to underserved neighborhoods. <ins>(Jordi Molina/Special to S.F. Examiner)</ins>
SFMTA delays vote on Bayview Slow Streets, approves five others in ‘underserved’ areas

SFMTA struggles to conduct outreach in neighborhoods with lower internet access

Stern Grove Festival organizers are planning to bring back the popular summer concert series — The Isley Brothers show in 2019 is pictured — with limited audience capacity. (Ming Vong/S.F. Examiner)
Indoor shows won’t be flooding SF stages soon but Stern Grove might be back in June

While San Francisco Mayor London Breed announced that live performances may resume… Continue reading

San Francisco Giants pitcher Johnny Cueto  (47) started on Opening Day against the Colorado Rockies at Oracle Park on April 9, 2021. (Photography by Chris Victorio | Special to the S.F. Examiner).
Giants welcome fans back with strong performance by Cueto

By Ethan Kassel Special to S.F. Examiner ORACLE PARK — The first… Continue reading

James Harbor appears in court after he was arrested on charges in the July 4th shooting death of 6-year-old Jace Young on Friday, Jan. 8, 2021. (Kevin N. Hume/S.F. Examiner)
Murder case heads to trial over killing of 6-year-old Jace Young

Hearing reveals new details in ‘horrific’ Fourth of July shooting

BART passengers may see more frequent service by this fall. (Kevin N. Hume/S.F. Examiner)
BART service increases possible as soon as September

Proposal would double weekday, daytime trains and extend system operating hours

Most Read