'Perfect financial storm' could rock San Francisco

[marmar]

from the San Francisco Chronicle:



S.F. home value drop, jobless drain city budget
Heather Knight, Chronicle Staff Writer

Tuesday, November 17, 2009


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San Francisco's lowered home values and high unemployment rates have created another unwelcome side effect: far less revenue coming into city coffers than expected.

A report released Monday by the controller's office shows that property tax revenues will likely be $35 million less than anticipated in the 2009-10 fiscal year that began July 1. Payroll tax revenues will probably be $24.8 million less than expected, the report said.

To make matters worse, some city departments are going over budget, including shortfalls of $5.1 million in the Fire Department, $4 million in the Sheriff's Department and $3.2 million in Superior Court.

This year's $6.6 billion budget bridged a $438 million gap and included a $25 million cushion for unexpected revenue loss. But that's proving not enough to make up for the missing dollars, meaning San Francisco is now expected to be in the red by an additional $28.1 million over the course of this year.

"I don't even know if I have words to describe how bad this is," said Steve Kawa, Mayor Gavin Newsom's chief of staff. ..........(more)

The complete piece is at: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/11/17/MN001ALO7J.DTL&tsp=1