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Controller warns of $127M revenue shortfall; mayor's office outlines potential $112M state impact

Budget and Finance Committee, Board of Supervisors · February 18, 2009
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Summary

Deputy Controller Monique Smuda reported a projected current-year general fund shortfall of roughly $126.9M and a year-end balance of $20.1M after midyear cuts and reserve draws; Mayor's budget director Nani Coloretti briefed the committee on a proposed state package that could add roughly $112M of impact to San Francisco depending on triggers and federal stimulus outcomes.

The Budget & Finance Committee received the Controller's six-month report and a state-budget briefing that together painted a sharply constrained fiscal picture for the city.

Monique Smuda, deputy controller, said the office now estimates a current-year revenue shortfall of about $126,900,000 driven by declines in property transfer tax, sales tax, hotel tax and other discretionary revenues. After projected expenditure savings, reserve withdrawals and other offsets, the controller projects a $20.1 million general fund ending balance for the year. Smuda emphasized the continuing uncertainty caused by volatile markets and the unresolved state budget.

Smuda outlined the composition of the shortfall:…

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