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Mayor’s budget office projects $522 million shortfall; supervisors push for revenue and structural options
Summary
The mayor’s budget director told the committee the general fund faces a projected $522.2 million year‑over‑year deficit driven by revenue declines and expenditure increases; supervisors pressed for rapid options for midyear cuts, potential ballot measures and structural reforms.
The mayor’s budget office presented a preliminary outlook Dec. 8 that projects a $522.2 million budget gap for FY2010–11, driven by lower property and payroll taxes, the expected expiration of federal FMAP increases, reduced rainy‑day funds and rising labor and benefit costs.
Greg Wagner, the mayor’s budget director, told the committee departments were asked to identify $45 million in midyear cuts to bring the current year into balance and to prepare a broader set of options (targets around 3.9% of general‑fund support) for next year. Wagner emphasized uncertainty around state actions, property-tax appeals, and whether FMAP extensions will materialize; he flagged potential swing factors including rainy‑day reserves and AB 109/Proposition-related revenue actions.
Supervisors urged prompt, collaborative discussion with the mayor’s office, labor and stakeholders about revenue options for the June ballot and structural reforms to avoid repeated deficits. Several supervisors said they expected a revenue measure to be part of a citywide solution and suggested specialized hearings to marshal ideas before title‑setting deadlines.
