6:15 a.m., June 29
Silver Lining In City's Five-Year Financial Forecast
Remember that "gradual economic recovery" that the City predicted in a recent financial forecast? Well, the City's director of financial management, Mark Leonard, told the Budget and Finance Committee on Wednesday that the recovery is even "more gradual" than expected.
But while the structural deficit will not topple anytime soon, Leonard says he is beginning to see some cracks in its foundation.
In the Five-Year Financial Outlook, the City expects a $31.8 million shortfall for next fiscal year, nearly $10 million less than initially predicted . That budget gap will grow to $36.6 million in fiscal year 2014 before shrinking. By 2017, Leonard and his team predicts the City will no longer be in the red and instead will have a $22 million surplus.
Silver linings aside, committee members had concerns that the report didn't take into account the City's infrastructure deficit, as well as concerns of impacts to service levels.
Committee chair Todd Gloria preferred to look at the bright side. "Let's put this in context. We are doing something right here. Only in this economy can you be proud about the size of the deficit," said Gloria after listing larger deficits in Los Angeles, Oakland, and San Jose.
Pictured: Todd Gloria
More like this:
- Mayor's Budget Guts and Cuts But Misses the Fat — April 18, 2011
- City Checks Its Math on Five-Year Financial Outlook — Feb. 9, 2011
- Bad News Rising — March 3, 2010
- Riding the Storm Out — Nov. 24, 2009
- Crunched — Oct. 26, 2009