The City is looking at more years of budget deficits, according to a budget report released Thursday by the City Controller’s Office.
The City’s latest deficit projection for the upcoming fiscal year was lowered to $306 million, down from the previous projection of $380 million. But the report is projecting deficits in the subsequent fiscal years. There is a $480 million deficit projected for fiscal year 2012-13, and a $642 million deficit projected for fiscal year 2013-14.
Ongoing savings implemented to close next year’s deficit would lower the projected deficits in the subsequent years. Mayor Ed Lee Lee must submit a proposed balanced budget by June 1 to the Board of Supervisors for review and adoption.
Layoffs and other controversial proposals should be considered to help close the deficit, Lee was recently told by his budget director Greg Wagner.
The report says that there is a projected “modest continued recovery in tax revenues” but there is also “projected increases in salary and benefits, citywide operating expenses, and departmental costs are rising faster than the projected revenue growth.”