San Antonio staff warns of multi‑year shortfall; consultants propose hybrid zero‑based review

SAN ANTONIO — City of San Antonio budget staff told the City Council on May 7, 2025, that revenue collections for fiscal 2025 are coming in below projections and that a five‑year forecast shows growing structural gaps that will require spending reductions or other adjustments.

The city’s budget director, Cristina Tay, told the council that shortfalls are driven by weaker sales and hotel tax receipts, lower airport activity and declines in assessed property values amid protests, exemptions and litigation. “Based on this update, the general fund is $2.4 million less than we expected when we adopted the budget in September,” Tay said. She and her team said staff will refine projections through June and provide updates ahead of the council’s goal‑setting session.

Why it matters: City staff said the current fiscal picture is manageable for the remainder of FY25 but that without changes the five‑year forecast shows a structural imbalance. The city’s presentation projected a roughly $31 million gap in FY26 that could grow to about $148 million in FY27, figures staff said reflect current revenue assumptions and planned cost growth.

Drivers and numbers - Sales taxes and hotel occupancy taxes have grown more slowly than budgeted; staff said…