San Antonio projects multiyear budget shortfalls; consultants urge hybrid budgeting and deeper reviews

SAN ANTONIO — City officials told the San Antonio City Council on May 7 that the city faces recurring revenue shortfalls and structural deficits over the next five years and proposed process changes that could reshape how the city sets budgets.

At a B-session budget briefing, Justina Tate, the city’s budget director, called the five‑year forecast “not structurally balanced” and said the forecast “projects deficits for the five years,” citing slower-than-expected growth in sales tax and property tax collections along with rising personnel and operating costs.

The forecast shows that for fiscal 2025 the general fund is running behind the adopted budget by an estimated $9.7 million, Tate said, with sales tax about $5.2 million below budget and property tax about $9.8 million below budget. Taxable value declined by roughly $3.4 billion after the certified roll because of additional protests, litigation/arbitration and exemptions — figures Tate gave as about $900 million, $1.3 billion and $1.2 billion, respectively. The forecast projects an approximate $31 million deficit in 2026 that grows to about $148 million in 2027 if no…