S.D. Facing Largest Ever Deficit
San Diego leaders say the city is facing a record breaking $180 million budget deficit next year. Officials are warning there won’t be an easy fix.
Declining tax revenues and investment losses are being blamed for the deficit. Mayor Jerry Sanders says tax revenues are down $67 million. The city must also make a record breaking $225 million pension payment next year. Sanders says the city has cut $175 million from its budget over the past 15 months.
Last year the city used some one time reserve money to help cover its deficit, but Sanders says that’s not likely to happen again.
“I would certainly counsel against going into our reserves. You can’t reserve your way out of this issue. And our general fund reserve is at 7 percent right now, which puts it about $70 million, which doesn’t reach $179 (million),“ he says.
Sanders says the public cannot be shielded from budget cuts this time. He says people need to be ready for a reduction in city services, including cuts to the fire and police departments.